Bab 201: Chapter 201: This Young Man Is So Shameless
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"We won the Second World War. We are the biggest beneficiary country. There is no doubt about this. People like a stable life. In the future, all products for people's livelihood will sell well. We can increase investment in this area."
"With abundant supplies, people will pursue a higher quality of life, and entertainment is essential. In the future, entertainment will continue to develop rapidly, and there is still a lot of room for money in movies, TV, and records."
"In the future, oil will continue to be one of the most profitable industries. At the same time, all chemical industries derived from petroleum will be used in large quantities for people's livelihood, as well as the automobile industry. Car ownership currently only accounts for 5% of national households. This number will increase greatly in the future, with at least one car per family."
"The military industry will definitely be highly valued by the government because we rely on advanced weapons to achieve victory. The government hopes to always maintain an advantage. Therefore, we will not hesitate to invest in the military industry. There is only one order from the Ministry of National Defense. I don't know how many companies we have to support."
"I think the export industry will see significant improvement. World War II has caused a great blow to many countries, such as our allies Britain and France. They need to rebuild. There is a huge demand for steel and building materials, which will also drive domestic steel production, leading to increased steel prices and output, naturally developing the mining industry and earning more."
"There are also Asian countries. After this war, the suppressed countries have suffered enormous disasters and will become huge markets for development in the future. You should consider deploying there in advance."
Amadi Giannini looked at Hardy, trying to conceal the shock in his eyes. Many of Hardy's insights aligned with the analysis of the Bank of America think tank.
Although the think tank is not yet established, Bank of America has several predecessors that function similarly, analyzing future development trends through political, economic, social, military, diplomatic, technological, and other information.
Gianini has always found these think tanks very helpful and relies heavily on them. Recently, they have made predictions about the future direction of the US economy and industry development.
Hardy's predictions about people's livelihood, entertainment, steel, building materials, automobiles, the military industry, and even exports closely match the think tanks' analysis.
The old man is astonished that Hardy's analysis aligns so closely with conclusions drawn from extensive data and internal government information. It seems improbable that Hardy could have access to such detailed information, given his lack of deep connections with the government.
However, his analysis is so precise that it reveals Hardy's extraordinary intelligence and sharp vision, allowing him to foresee such extensive developments.
No matter who it is, being able to predict the direction of the next few years, or even one or two years, and then working diligently in that direction, is a sure way to achieve significant success. It is no wonder Hardy has achieved so much in just two years.
But what Hardy said differs slightly from the think tanks' analysis, particularly regarding Asia.
The think tanks had analyzed that Asia would have no development prospects for at least ten years, making it an area not worth investing in. Currently, Bank of America's focus should be on China and a small amount in Europe.
In fact, this strategy aligns with the approach of most American companies.
At this point, Hardy smiled and said to Giannini, "My previous industries were basically in these directions: ABC TV, film companies, airlines, Playboy magazines, TV companies, cosmetics companies, and so on. These are all people's livelihood industries. With intensive cultivation, they still have a lot of room for development."
"Also, the gambling industry is a major player in development. I believe that in the future, Las Vegas will become a gambling city in the United States, and even the world. As long as this famous brand is established, it can attract many tourists and spenders. It is definitely a lucrative industry and will continue to grow."
Giannini nodded. "I know about your Hardy Hotel. To be honest, your business strategy has many unique features, especially the TV lottery and proxy investment companies, which cleverly avoid the state's restrictions on lotteries."
"I heard that the TV lottery event is more profitable than the casino itself, isn't it?" Giannini asked.
"It is true. It is currently stable at around $60,000 per draw, with annual income exceeding $30 million. Including the casino, it should be around $40 million," Hardy replied.
Giannini was impressed. "Our Bank of America, with dozens of cooperative companies, has an annual profit of just over $200 million, while your small casino achieves annual revenue of $40 million. Such profits are indeed enviable."
"Hardy, will the new casino include this project?" Giannini asked.
"Of course, but the use of TV station resources and proxy investment companies requires additional payment. At that time, management will negotiate with ABC TV and the proxy investment companies," Hardy said.
Giannini looked at Hardy, realizing that this young man is quite the shrewd operator. Management is you, ABC TV and the proxy investment company are also yours. You negotiate with yourself, and ultimately, all the money goes into your own pocket. The calculation is truly astute.
Noting the time, the old man said, "I take a walk in the yard every afternoon. The sun is nice today. How about we go for a walk?"
"Sure," Hardy agreed, standing up.
The two walked out of the house into the expansive garden, which connected to the hills at the back. The grass stretched out endlessly.
Giannini gestured to a nearby servant, and the butler soon delivered a box. The old man opened the box and took out two trimmed cigars, handing one to Hardy.
"Care for a cigar?"
Hardy accepted the cigar and smiled. "Davidoff, this cigar is famous for Churchill."
"Yes, I like this taste," Giannini said.
They lit their cigars and walked slowly forward. The surrounding people did not follow but kept at least 30 meters away, maintaining distance.
"Hadi, are you familiar with our Bank of America?" Giannini asked.
"I know a bit, mostly the data announced publicly," Hardy said.
The old man smiled. "Bank of America now has over 400 branches in every city in the United States. Last year, our users reached 5 million, and the bank's total assets amounted to $11.6 billion."
Total assets are not the same as market value. Bank of America's market value is currently around $2 billion.
"Bank of America has also invested in several companies, including Wells Fargo, Lockheed, Litton Industries, and Northrop Grumman. I believe they all have bright futures."
Hardy acknowledged. "They do have promising futures. Lockheed will become the world's largest arms dealer, Northrop Grumman the second largest, and Litton Industries the fourth largest arms dealer in the United States."
"Bank of America has also invested in other banks, such as the Bank of San Francisco, Los Angeles City Bank, and Wells Fargo. We are involved in insurance, mining, metal smelting, and agricultural products. Including all our partners, our scale has exceeded $20 billion."
Giannini played a little with the figures, talking about scale rather than assets. The total assets of the California consortium are currently over $8 billion. While some companies look impressive, their actual scale might be only in the tens of millions.
However, even tens of millions is significant in this era.
The old man let Hardy digest this information while they continued walking, smoking their cigars.
"Hardy, are you interested in joining us?" Giannini finally asked.
Hardy had suspected that Giannini's invitation was more than just a casual walk. It was clear that their conversation might involve major investment projects, and Giannini wanted privacy to discuss them without outside interference.
Hardy had anticipated this move from the California consortium and had already considered his position.
The California Consortium is an emerging force after World War II, and joining it now means being part of its early development. Although Hardy could rely on his experience to develop independently, it would be a tougher road compared to collaborating with the consortium.
Joining a consortium offers many benefits, primarily through resource integration. The California consortium nearly monopolizes industries on the West Coast, and being part of it means easier access to resources and support for future developments.
Of course, joining such a consortium requires contributing to its success. It is a mutually beneficial arrangement where both parties gain from each other's resources and expertise.
For example, the construction of Hardy's new casino in Las Vegas involves hundreds of millions in investment. This requires construction companies and suppliers, many of which are within the consortium. Using consortium resources can save costs and resolve financial issues through reliable partners.
Furthermore, controlling the underground power in Los Angeles is a significant asset. The consortium sees the value in Hardy's control over the Mafia's influence, which can prevent commercial attacks and secure business operations in key markets.
Giannini knows that Hardy's influence extends to half of the Mafia families, making him a valuable asset for the consortium.
Hardy didn't immediately respond. He continued to walk and smoke, contemplating the offer.
"Mr. Giannini, I would like to request a few things," Hardy finally said.
"Oh? What are they?" Giannini asked.
Hardy took a breath and said, "I want you to help me acquire Wells Fargo. Bank of America holds 12% of its shares and is the second-largest shareholder. I'd like you to assist with the acquisition, and I hope you can lend me the necessary funds."
Giannini was taken aback. Hardy was essentially asking for the Bank of America's help to acquire a bank without investing his own money. The audacity of such a request was astounding.
Bab 202: Chapter 202: Acquisition of Wells Fargo Bank
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The old man finally understood how Hardy had succeeded. His previously polite and peaceful demeanor had been an illusion; beneath the surface was a ruthlessness that rivaled the most hardened capitalists.
Yet Giannini knew that such qualities were often essential for success in this cutthroat society.
"The acquisition of Wells Fargo is a major undertaking," Giannini said. "Wells Fargo has over $200 million in assets. This is not a small deal."
"The Fargo family, the founders of Wells Fargo, hold 17% of the shares. It's not easy for them to part with their stake, and there are dozens of other shareholders," he added.
Hardy smiled. "If Bank of America intervenes, it shouldn't be too difficult. If cash is needed, you can offer them cash. If they prefer, I'm open to exchanging shares from other industries, like the Hardy Hotel."
Giannini's eyes brightened. "You're proposing a swap?"
"Yes, but the price will need to be negotiated. The profitability of the Hardy Hotel is well-known. If it were listed now, what do you think its market value would be?" Hardy asked.
Giannini knew that negotiating with Hardy would not be straightforward. The banker valued the shares Hardy held, but he had not reached the point of willingly investing hundreds of millions without a significant return.
After a moment of thought, Giannini said, "I will spend $60 million to acquire 30% of Hardy Hotel."
This valuation equated to $200 million for Hardy Casino.
"At the same time, I will help you complete the acquisition of Wells Fargo. Any shortfall in funds will be covered by Bank of America."
Giannini had previously coveted the Hardy Casino's earnings. The opportunity to invest in it now was too enticing to pass up, especially with the chance to secure a portion of its profits.
Hardy shook his head. "The casino currently earns $40 million a year, and I believe this will increase. For 30%, $100 million is the minimum."
Giannini considered the price too high.
"$80 million is the most I can offer," he countered.
"$90 million. Otherwise, the casino shares will remain unsold. With 13,000 banks in the U.S., I don't believe you can't find another bank to acquire," Hardy said.
"Alright, deal!" Giannini conceded.
"By the way, you mentioned needing assistance with other matters?" Giannini inquired.
"I've heard you have shares in Pepsi. I'm very fond of that drink. Would you be willing to sell me your shares?" Hardy asked.
Giannini was surprised. To him, Pepsi was merely a beverage brand, overshadowed by Coca-Cola. During World War II, Coca-Cola had seen a surge in demand as it was included in military supplies, whereas Pepsi had struggled and was almost bankrupt. Pepsi's strategy of increasing volume while reducing price had kept it afloat but remained a distant competitor.
"I hold 23% of PepsiCo shares. The company is valued around $16 million. Are you interested?" Giannini asked.
Although Pepsi had struggled recently, Hardy's interest was unexpected. Giannini was willing to sell as Pepsi's value was modest in his view.
"Yes, I'm interested," Hardy affirmed.
Giannini, seeing Hardy's genuine interest, agreed to sell the shares at market price.
The exchange was satisfactory for both parties. Bank of America would benefit from the casino's profits, while Hardy secured the promise of acquiring Wells Fargo and gained shares in Pepsi.
Giannini dined with Hardy that evening, discussing various details. Hardy left after 9 PM.
Later that night, Hardy called the old godfather. The Corleone family owned 39% of the casino shares.
"Mr. Corleone, I'm raising funds and planning to cooperate with Bank of America to acquire a bank. I'm selling them 30% of Hardy Casino shares. I have two options: sell 30% to Bank of America alone, or split it between our two families—20% from me and 10% from Corleone. This way, I'd hold 41%, Corleone 29%, and Bank of America 30%," Hardy explained.
The old godfather, recognizing Hardy's proposal as favorable, responded, "No problem. Corleone's family will cover the 10%."
The Corleone family had benefitted greatly from Hardy Casino's success under Hardy's management. The old godfather understood the value of Hardy's contributions and agreed to support the investment.
"Thank you, Mr. Corleone. I'll arrange the transfer of the 30% shares to Bank of America," Hardy said.
"The money for the bank acquisition will be kept with you for now. If the Hardy Group requires an investment partner in the future, use this money. What do you think?" the old godfather proposed.
Hardy agreed, appreciating the support and acknowledging the potential for future collaborations.
The next day, Hardy and Andy visited Bank of America to finalize the acquisition agreement for Wells Fargo. They signed the necessary documents, securing the bank's support for the deal.
Giannini reached out to Rhide Fargo, the current head of the Fargo family, to discuss the situation. They met at the manor.
"Rhide, someone is looking to buy Wells Fargo," Giannini said with a smile.
"Who?" Reid Fargo asked, surprised.
"Jon Hardy," Giannini replied.
Reid Fargo's anger flared. "Hardy? I heard from the president of the company that Hardy Group is Wells Fargo's largest client. Their business accounts for over 20% of our operations. With such a major client, our performance this year should improve significantly."
"Indeed, Hardy wants to acquire Wells Fargo to streamline his operations. His expanding business portfolio makes owning a bank advantageous," Giannini said.
"Mr. Giannini, I hope you can prevent this. The Fargo family has deep roots in Wells Fargo. We don't want to lose our foundation," Reid Fargo pleaded.
Giannini shook his head. "Rhide, it's not that simple. If Hardy withdraws his business, Wells Fargo will face significant losses. The stock price would plummet, impacting everyone's interests."
"If Wells Fargo's stock price drops significantly, minority shareholders will be forced to sell," Giannini added.
Reid Fargo, realizing the gravity of the situation, understood that it was almost impossible to stop Hardy. Bank of America could easily undermine Wells Fargo if they chose to withdraw their business.
"Fine. I'll discuss this with my family and give you an answer soon," Reid said, frustration evident in his voice.
In the following days, rumors circulated about a potential acquisition of Wells Fargo, causing uncertainty in the market. As speculation grew, Wells Fargo's stock price began to decline.
At a hotel in San Francisco, Hardy welcomed a new guest.
A middle-aged man in his forties entered the hotel. Hardy greeted him with a handshake. "Good afternoon, John."
"Hello, Mr. Hardy," John Ston replied.
John Ston, the current president of Wells Fargo, had been in contact with Hardy before. Hardy admired Ston's managerial skills, as his leadership had significantly improved the bank's performance, particularly through their business dealings with Hardy Group.
The meeting marked a new chapter in Hardy's expanding empire and the ongoing reshaping of the financial landscape.
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