However, due to geographical reasons, the relationship between the Mellon Group and the Cleveland Group has always been very close, and many core companies under the two groups are mutually controlled.
For example, Armco Steel, National Steel, and Goodyear Tire & Rubber Company are all core enterprises of the two consortiums that have cross-holdings. It is precisely because the core enterprises of the two consortiums have achieved cross-holdings with each other that the relationship between the two consortiums has always been very good.
And at this critical juncture, the Cleveland Consortium suddenly took unusual actions, which Richard could not help but pay attention to.
Paul Mellon said, "Richard, I think Cleveland can still distinguish the importance of things. After all, Smith also controls a large number of stocks in several core companies under their name. If Cleveland stands on the side of Boston, given Smith's character, he probably won't let Cleveland go. Therefore, we should also be prepared for both situations. At the very least, don't involve Cleveland, which will also affect our Mellon family."
Richard nodded and said, "Paul, you have to step in on this matter as well. How about this? You should take some time to visit Mr. Smith and ask him to show mercy. Alas, these idiots in Boston, why did they have to mess with that guy? You said he was the agent sent by Europe, but that's too far-fetched."
Scaife also nodded and said, "Yes, others don't know Smith's background, but we have some knowledge of it. Apart from other things, the capital brought by Smith was transferred through Citibank and Morgan Bank. Those funds did not flow in from Europe at all. This alone proves that Smith is not an agent from Europe. It's just that these guys in Boston have been blinded by hatred."
After a pause, Skaife continued, "I just don't know how Smith will do it. I really hope he can give those guys in Boston an unforgettable memory."
Timothy said, "Given Mr. Smith's ability, he will definitely not let those guys in Boston go. We just have to wait and see."
......
The same situation is happening in several other places in the United States. A group of wealthy tycoons have gathered together, ready with knives, forks and napkins, waiting for a feast.
Yang Jing did not let these tycoons wait any longer. Five days after the plane crash, on the sixth day, which was the beginning of a new week, the stocks of several core companies under the Boston Consortium were sold off in large quantities. In addition, the KY Investment Fund submitted two statements to ESC early in the morning, announcing that it would reduce its holdings of the shares of Boston First National Bank and John Hancock Mutual Life Insurance Company owned by the KY Investment Fund.
Subsequently, the stock prices of the two core companies in the Boston consortium suddenly fell. The large amount of selling caused panic among many shareholders holding stocks of these companies. Then, in just twenty minutes, the stocks of these two companies fell by 15.5%.
However, due to last year's stock market crash, the New York Stock Exchange once again activated the circuit breaker mechanism. Therefore, when the stocks of Boston First National Bank and John Hancock Mutual Human Insurance Company fell by more than 15.5%, the circuit breaker mechanism was automatically triggered and trading of the two stocks was suspended for half an hour.
The activation of the circuit breaker mechanism triggered a new round of panic. After a brief half-hour suspension of trading and resumption of normal trading, more selling orders appeared, and the share prices of the two companies continued to fall at a faster rate than last year's stock market crash.
The Boston consortium immediately issued a statement, claiming that it would file a lawsuit against KY Investment Fund with the ESC. As a major shareholder of the company, KY Investment Fund announced a reduction in its holdings without any reason, which was a violation of regulations.
However, what the Boston consortium did not expect was that their statement actually stimulated the decline in stock prices. After ESC announced that it had begun interviewing the head of the KY Investment Fund, the stocks of Boston First National Bank and John Hancock Mutual Life Insurance Company not only did not stabilize, but instead accelerated their decline. By the close of the afternoon, the stock prices of these two stocks had plummeted by 28%!
In other words, within one day, the market value of the two banks and insurance companies, which originally had a combined market value of more than 90 billion US dollars, evaporated by nearly one-third.
Henry Williams, the head of KY Investment Fund, directly declared that there is no problem with our divestment plan and the divestment will continue tomorrow!
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