Chapter 463 Morgan in prison
Most state-chartered banks regulated by state banking laws are also not allowed to engage in trust business. However, these chartered trust companies not only have the opportunity to engage in trust investment business, but also compete with national banks for traditional commercial banking business. At the same time, they enjoy more relaxed supervision than national banks and state banks.
Because state governments often have loose reserve ratio requirements for trust institutions for the sake of regional economic development, and they also impose fewer restrictions on asset selection. For example, trust companies can directly own stock assets and are allowed to own and manage real estate, which is not allowed in national banks regulated by the federal government.
The conflict between bankers and trust companies can actually be reconciled, but the old bankers on Wall Street did not get much of the profits in this round. The vested interests are always not as bold as the risk-takers. But now is the time to let these upstarts know who has the final say. Under the leadership of Rockefeller Jr., news that is unfavorable to the Knickerbocker Trust Investment Company has been constantly exposed, which makes Heinze's tragic last bullet seem so futile.
In fact, the conflict between Standard Oil and Heinze has a long history. When there was no federal government, Standard Oil almost wiped out DuPont. It can be seen how terrible it was when it was certified by the Rockefeller family.
The dispute started several years ago. Heinze was actually also a mine owner, but not a copper mine owner. He invested in commercial banks several years ago. It must be said that he grasped the context very accurately. In less than ten years, he ran the bank successfully. The conflict with the Rockefeller family was not in the banking field, but when he transformed from a miner to a financial institution, he caused Standard Oil to suffer a loss.
At that time, it happened that Rockefeller Jr. had just taken over Standard Oil from his father and had successfully established connections with the United Company, which made Standard Oil think that it could be replicated. However, Heinze took the opportunity to teach Rockefeller Jr. a lesson, who had just thought that success was just so-so. Now Rockefeller Jr. finally got the chance.
As for the conflict between the trust company and the bank, it had nothing to do with Rockefeller Jr. It was just a coincidence.
The slave owner naturally did not know that Rockefeller Jr. had once been at odds with Heinze. The academic heir could also be ruthless sometimes, but this was understandable. It was all for his own benefit, so it was reasonable to conceal something.
If a natural disaster affects China, America and Europe a hundred years from now, the United States will of course say that it hopes the most threatening one will die. But in its heart, it certainly hopes that both will die. If things don't go well, at least one will die. Because one of the three players is reduced, the United States can always lie there and suck blood successfully to survive for a few more years, and then think about the championship and runner-up, but it depends on who collapses first.
If only the trust companies were hit hard, Sheffield judged that this would be disadvantageous to him, because even if the space vacated by Knickerbocker Trust and Investment Company was completely taken over by United Bank, it would only be enough for United to gain a foothold in the financial field. There was no question of growth and expansion. The best thing was to expand the crisis and eliminate all the problematic banks that were not on the table, so that they could give up the market.
After the last reserve was run out, it also marked the collapse of the Knickerbocker Trust and Investment Company, and the two bosses who supported the trust company, Heinze and Morse, returned to the pre-liberation era and became another ghost under the chariot of Standard Oil.
Morgan, who was traveling in France, had actually been in Lyon. On the day when the Knickerbocker Trust and Investment Company went bankrupt, Morgan received a telegram from his son, and he knew at that time that he should return home. If there was one person among the bankers who was least surprised by the crisis, it must be Morgan himself.
Morgan and the international bankers behind him accurately calculated the expected results of this financial storm. First, it would shock the domestic society and show how fragile a society without a central bank is. Second, it would squeeze out and merge small and medium-sized competitors, especially the trust investment companies that the bankers were quite concerned about. And it would obtain the important enterprises that they had long coveted.
Morgan and his son also did not know the relationship between Rockefeller Jr. and Heinze, but in the end he discovered Rockefeller Jr.'s actions in his own home court, so he could guess what Rockefeller Jr. was thinking without any communication.
Now that an iconic trust company has gone bankrupt, Morgan also knows that he should return home. Morgan walked out of the villa and rushed to the port with bodyguards, preparing to leave France by ship. Prior to this, Morgan had informed his son that he would return home to clean up the mess and save the market as a savior.
Morgan got in the car and headed for the port under the protection of two cars. The villa where he lived was only five kilometers away from the port, so nothing would happen. Morgan was used to staying in the middle, which was his long-standing habit.
There won't be any accidents in just five kilometers, right?
A middle-aged man parked his car at an intersection, smoking a cigarette, and smiled at a convoy approaching from the right. He kept pressing the accelerator, and with every step, the engine roared with overload.
The two cars following behind also came into sight. The man waiting here looked at the slowly moving lead car, counting down silently in his mouth. Then the car he got in rushed out like a bullet, and the car accident happened, hitting the lead car in front with great precision. It was so fast that people couldn't believe their eyes.
"Morgan has no habit of being the lead car, that's great! He has good driving skills and his expensive price has a reason." Harry Sheffield's mouth was almost grinning from ear to ear under the telescope. He felt that all his expenses for the next ten years would come from this car accident. The perpetrator had perfectly achieved the result he wanted.
This road is the main road leading to the port. Morgan's driver reacted quickly and stepped on the brakes immediately. This made Morgan frown slightly. Although he still appeared to be calm, he had a bad feeling because something unexpected had happened that was beyond his plan.
Soon the French police arrived here. For the Lyon police, this was very fast, so fast that it seemed like it was planned. Morgan didn't want to cause any trouble, and he urgently needed to leave France. His motherland urgently needed him and he couldn't waste time here.
For this reason, Morgan chose a very conventional option that was in line with the characteristics of a banker, which was to solve the problem with money. Generally speaking, this was always successful, and what was more, the responsibility was not on his side. It was obvious that his lead car was seriously damaged and the bodyguard inside was also injured, so it should not be a problem.
Under normal circumstances, this would not be a problem if Morgan was generous enough to pay 10,000 francs directly. However, Harry Sheffield offered 10,000 francs to create this car accident.
With the support of 10,000 francs, the man who crashed the car refused to give in. The police who arrived were so righteous that they even thought that Morgan was deliberately using money to corrupt the great French police system. They righteously rejected Morgan's bribe, upheld the dignity of the great French police, and took Morgan to the police station without further ado.
Morgan's bodyguards would certainly not give in, but with the arrival of other police officers and the arrival of the perpetrator's family, Morgan was definitely unable to escape, and was kept by the police in the name of investigation.
As for Harry Sheffield now, he opened his most treasured phone book, and with his fingers as nimble as an electric drill, he quickly found his connections in Lyon. All he had to do was follow the procedures and keep Morgan in Lyon for ten days or so. This was his son's specific request, and Harry Sheffield felt that this request was not excessive, and it was not excessive at all considering the pension.
Morgan's original plan to return home was delayed by an accident. Meanwhile, Mike, who was distraught, no longer had the high spirits he had when he was still at Knickerbocker Trust Investment Company. He looked tired and bloodshot with eyes looking at Blair, who had come to him, not knowing what the other party's purpose was.
"Long time no see!" Seeing the former executive director become like this, Blair had an indescribable feeling in his heart, which eventually turned into a helpless sigh. Now the Nick Burke Trust Investment Company has gone bankrupt. In fact, it has only been less than half a day since the bankruptcy, but the person in front of him seemed to have aged ten years.
"Are you here to laugh at me?" Mike looked up at Blair, who was still in good spirits, and asked with a wry smile.
"I did have some thoughts originally, but now I don't have that thought anymore." Blair sat down and lit a cigarette, puffing away the smoke as he spoke, "I think you should know the underlying reasons for this outcome, including Mr. Barney, the major shareholder of the trust company, as well as Mr. Heinze, Mr. Morse, and their bank."
"We were attacked by a powerful alliance of bankers!" Mike said weakly, "including the New York Clearing House."
"Mike, actually I'm here to see you on behalf of my new boss!" Blair hesitated to speak. He had just been given permission to come out and talk to the other party, but only after the Nick Burke Trust and Investment Company went bankrupt.
"Who is your new boss?" Mike has been facing a run on the bank these days and had no idea that Blair was calling for a rate cut.
This time it was Blair's turn to be at a loss for words. He said with some embarrassment, "I am now the manager of Union Bank. Together with Union Mining, which you were originally planning to acquire, I am a member of Sheffield Union Company. The purpose of coming here now is to talk to you, Mr. Heinze, and Mr. Morse. If all goes well, maybe we can revive the company."
(End of this chapter)
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