Just like a stock trader can't let themselves or their family and friends buy or sell the stocks they trade.
Investment banks, as trading platforms, cannot directly participate in the transactions.
Clearly, Lehman Brothers violated its principles.
Looking at the agreement Collins brought, Xing Baohua could truly see the true face of capital. If Xing Baohua signed it, according to the terms of the agreement, he would have to pay a very heavy price.
The kind that leaves not even a trace.
A downward trend framework was established for Xing Baohua.
This framework is a 1000-point fluctuation range. In other words, from the moment Xing Baohua leaves the game, as long as Xing Baohua shorts the market beyond 1000 points, Lehman Brothers will lose.
Lehman Brothers provided two frameworks, both with a 1000-point target. But Xing Baohua knew that the Nasdaq index couldn't possibly fall to 1000 points.
The Dow Jones Industrial Average was the hardest hit by this stock market crash.
On that one day alone, the index dropped by more than 500 points, shocking the entire world and causing stock market indices across the Western world to plummet.
The hardest-hit areas are the UK and Hong Kong.
During the conservative period, Xing Baohua reduced his holdings on Nasdaq by half.
Don't be fooled by Xing Baohua's halving of the figure, around 500 points. It made Collins' eyes light up. According to the results from all the analysts at their headquarters, if a bear market arrives, the Dow Jones will fall by about 600-800 points, and there will be a year-long bear market to recover that loss.
The Nasdaq will drop by about 300 to 400 points, and it will also be a long period of decline.
Therefore, Lehman Brothers set a very large downward range, but it couldn't be too outrageous. Otherwise, Xing Baohua might as well have just given the money to Lehman Brothers directly.
If the price doesn't fall to a certain point within a set timeframe, how much money will Xing Baohua have to pay?
Xing Baohua smiled when he saw that it was within half a year.
Collins felt a little uneasy laughing, thinking that Xing Baohua felt Lehman was treating him like a fool after seeing the betting agreement.
To be precise, this is true. The rules were set by Lehman Brothers. You, Xing Baohua, want to play a betting game? As long as you agree to these terms, we'll play along with you.
"As long as the Nasdaq points are changed to around 500, I have no objection. Let the lawyer take a final look. If everything is fine, we'll hold a press conference and sign the agreement," Xing Baohua said.
"What!"
This guy actually agreed? Collins felt that Xing Baohua had really gone mad.
Okay, since we're holding a press conference, let's hold it and let the whole world see how a madman gives away money.
In our old saying, Xing Baohua is simply a money-giving boy.
Collins left happily to go back and change the numbers again.
Huang Xingyao, who works at Haina branch, also realized that his brain wasn't working properly.
The boss actually said that Lehman Brothers could participate in the betting, and sure enough, they did.
Things that violate principles are subject to regulation.
But a bet is different; it's like a private bet.
It's an off-site format; there's no direct entry.
This is similar to opening a betting pool off-exchange; if it were possible to open up the pool, perhaps more people would want to participate.
After noon, Collins rushed to Xing Baohua's place with the revised agreement, wanting him to take a look, fearing that if it was too late, Xing Baohua might change his mind.
Xing Baohua felt there were no problems, but some details still needed to be reviewed by a lawyer before he could sign.
Xing Baohua's personal lawyer, Robert Kardashian, was the first to arrive.
The agreement contains a lot of information, and the lawyer needs time to process it, saying he will reply to Xing Baohua first thing tomorrow morning.
Because the documents were confidential, Kardashian's lawyer couldn't take them with him. They could only be viewed at the branch office, with Xing Baohua accompanied by Huang Xingyao. Some issues could be changed directly.
Xing Baohua asked Collins to invite the media. Collins is a well-known figure on Wall Street. When he holds a press conference, all the media outlets will rush to the scene.
Like Hollywood, Wall Street is teeming with reporters from major media outlets. If anything happens, these media outlets are the first to arrive.
Nine o'clock the next morning.
The reception area of Lehman Brothers on Wall Street.
The staff have already set up many seats here.
The stage was made up of two tables put together, with a tabletop on which a few vases of fresh flowers were placed as decoration.
Collins, dressed in a suit and tie, was ready. All he had to do today was sign the agreement, shake hands with Xing Baohua, and take a few photos. His job would be done.
It was very simple, and he was also very happy. He seemed to see Xing Baohua providing Lehman Brothers with tens of billions of dollars in funding around the first half of 1988.
With a reminder from his assistant, he learned that Xing Baohua's convoy had arrived.
He personally went out to greet this billionaire.
The media didn't know the specifics yet; they just saw the Lehman Brothers branch president personally greeting an Asian man, and instinctively took photos before making any pronouncements.
Collins' assistant served as the host, briefly informing the media.
Lehman Brothers and HK SIG Investment Company are set up a $13 billion betting agreement.
It instantly shocked many people.
Then the flash went off, continuously taking pictures of Collins and Xing Baohua.
More reporters raised their hands to ask questions; they all wanted to know what kind of betting agreement it was.
Collins' assistant asked the media to quiet down and that a Q&A session would be held after the ceremony. They would then provide unified answers to their questions.
Xing Baohua signed both agreements according to procedure. Both lawyers also signed them, which served as a form of notarization.
Shake hands and take photos.
Xing Baohua left with an agreement.
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