Chapter 275: Big Mao overturns the table, and international speculators are in trouble
Senior executives of banks and financial industries in Russia have also realized the seriousness of the problem and have actively held meetings to discuss solutions.
Finally, on August 17, the Russian government announced that it would devalue the ruble, default on domestically issued government bonds, and suspend repayments to foreign creditors. On the same day, the Russian government and its central bank issued a joint statement, which said that the Russian ruble would depreciate significantly and the exchange rate against the US dollar would expand from 5.3 to 7.1 rubles to the dollar to 6.0 to 9.5 rubles to the dollar.
Russia's ruble-denominated debt will be restructured to avoid large-scale defaults by local banks, with restructuring measures to be announced separately. Payments on some banks' liabilities, including debt and currency option transactions, will be suspended for 90 days.
As soon as this news was reported, the financial institutions that had been opening champagne to celebrate their big gains from shorting the ruble in Russia were completely dumbfounded! The funds that went all in to short were almost forcibly frozen by the Russian authorities! Want to cash out and run away? Sorry, it will be possible at least after 90 days! But the exchange rate, which is a highly policy-based short-selling operation, changes almost instantly. Perhaps unexpected changes will occur in the next second, causing their original short-selling plan to go bankrupt. And Russia's direct and reckless approach this time directly buried all the international speculators who were full of confidence before! Everyone knows that Russia's current economic situation is not good, and the exchange rate of the ruble to the US dollar has also dropped significantly as they expected, but they can't cash out and leave now. They can only watch and curse Russia's lack of martial ethics. There is no other way!
Expecting the bigwigs in the US to contact Russia on their behalf and ask them to cash out the borrowed funds? Isn't this equivalent to telling Russia that it was the Americans who instigated a bunch of financial institutions to do this?! ...
Wall Street, Goldman Sachs headquarters.
The atmosphere in the conference room was quite quiet, and almost no one took the initiative to speak. They were badly fooled by Vice President Jacqueline Bernard's investment plan to short the ruble. They had previously agreed to a one-time start-up capital of 2 billion US dollars for the operation under the lobbying of the other party.
But he never expected that the investment that he thought was easy to make would run into Damao, a reckless man who did not follow the rules. Now all the money he invested was lost in an instant, and it would take at least three months before he could withdraw the money.
Who among those present would not know that this time it was clearly a case of "throwing meat buns at a dog, there is no way back"!
When he thought about the fact that his company's cash flow of 2 billion US dollars was trapped, even if he could get it out in three months, he might not get back half of it. In order to increase his profits, the confident vice president Joaquin Bernardo even increased the leverage by 3-4 times, trying to fully prove his investment ability and means through this investment.
As a result, such a big problem has now arisen. Not to mention saving the principal, the big banks that helped him provide leverage will come to trouble him and Goldman Sachs because of overdue repayment of the borrowed funds! With such a huge loss, even the president Henry Paulson, an old man who has seen a lot of storms, can hardly bear it for a while.
Matto Walls, who had always been at odds with Jacqueline Bernard, took the opportunity to complain, "Remember half a month ago, I made a mistake in the short position I bought in the futures market against Goldman Sachs, resulting in a loss of tens of millions of dollars. Our vice president, Jacqueline Bernard, has emphasized that the person responsible for the mistake must be punished accordingly!"
"If we can't give the other party a corresponding punishment, then whoever makes a mistake in the future can use his past merits to try to offset his mistakes? How can we convince others in the future? Mr. Bernard, am I right?"
Mato Walsh smiled brightly at the other person's extremely ugly face, and continued to stab him without caring at all. It is said that things change over time, but I didn't expect that it would be the turn of this hateful guy to be in trouble so soon after such a short time!
"...Mato Walsh, don't go too far! This investment project was reviewed by everyone. Who could have predicted Da Mao's unilateral move..."
Joaquin Bernard, who was mocked directly by his competitor, was naturally very annoyed, but at this point, he could only force himself to explain. As for letting him take the blame alone, it was definitely impossible!
…
Seeing that his colleague Joaquin Bernard was trying to drag them down at this moment, even CEO Henry Paulson couldn't hold back! It was obviously your idea, and you were the one who led it. Now that such a big problem has arisen, you want to blame us? Isn't this too unfair? ! Henry Paulson, who was a little annoyed, criticized Joaquin Bernard in front of everyone. At the same time, according to what Matto Walls had just said, since there was a mistake and the company suffered losses, everyone should bear the corresponding responsibility, no one is exempt.
Seeing this, others also spoke up and agreed. Seeing that many company executives who had a good relationship with him chose to turn against him at the last minute, Jacqueline Bernard was very disappointed at this moment. He knew that he was completely screwed this time. Unless a miracle happened, he would have to retire from the top of Goldman Sachs Group! After all, the loss was as high as hundreds of millions or even more than one billion US dollars. Such a huge loss was too much for even a Wall Street giant like Goldman Sachs to bear. There had to be a big man with enough status to be responsible for this matter, so that they could give an explanation to the outside world and try to restore the reputation of Goldman Sachs Group.
Perhaps due to the failure of shorting the ruble, the liquidity in Goldman Sachs' current account has become noticeably tight.
Part of the investment funds available in their accounts come from the company's major customers. If any negative news emerges in the future, leading to large-scale collective withdrawals by customers, they will probably find it difficult to cope with it. At that time, it will be an extremely troublesome public opinion crisis for Goldman Sachs!
President Henry Paulson decided to seek help from several other financial institutions to obtain a certain amount of capital turnover, and at the same time urged the vice president in charge of the company's listing to speed up the process.
As long as Goldman Sachs Group goes public, the company's stock will be able to obtain huge amounts of financing in a short period of time through stock market speculation and price increases. By then, with a large amount of funds to circulate, they will be able to quickly survive this sudden crisis.
There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!
(End of this chapter)