章節 1318: Chapter 1318: The Hunting Chicago Consortium
Richard Kimberley was right in guessing that Xia Yu had been behind the whole thing from beginning to end.
Joseph Chrétien himself knew it and agreed with it.
Although Joseph Chrétien had initially wanted to run in the election, he knew full well that the chances of success were slim.
The reason he wanted to run was simply because he wanted to give it a go. After all, if he ran in the election, even if he didn't succeed, at least he would get some exposure and gain more experience, which would be beneficial for the next election.
When the campaign manager, Barlow Pierce, made the proposal to him in private, Joseph Chrétien angrily called him a madman.
But after calming down, he thought of Ronald Reagan in the United States, who had also been shot.
Although he was shot after the election, the result was that after he was discharged from the hospital, the approval rating of the American people for him soared.
There was a precedent.
So, with a desire to take the Canadian prime minister's position, he agreed to take a chance, using a ruse of self-harm. As long as he didn't die, he could soar to the top.
Of course, it also eliminated the risk of a possible counterattack by the banking capital in advance.
He was 'arranged' to be shot by his own people in advance, so no one would dare to assassinate him again, because the consequences would be overwhelmed by the crazy Canadian people.
A bullet for his political future – well worth it!
Joseph Chrétien's operation was a success, he was only shot once, not in a vital area, and the bullet was only .22 calibre. However, he still needs to convalesce in hospital.
Although Joseph Chrétien was unable to travel around the country to give campaign speeches, public opinion was talking about him more and more every day, and his reputation was growing stronger and louder.
Not only were the media controlled by Xia Yu constantly reporting positively behind the scenes, but other media were also reporting on the story for the sake of a hot topic.
At the same time, the media kept fanning the flames of the bank capitalists and the Progressive Conservatives.
The reputation of the Progressive Conservatives and Martin Blaine continued to decline, and the poll results reversed rapidly.
Of course, even while in hospital, Joseph Chretien did not forget to put on a show, and it was a great success.
The consequence of the skyrocketing popularity of Joseph Chretien and the Liberal Party was the collapse of Canada's financial order, which in turn confirmed the loss of the government's ability to manage and intervene in the financial order. Public calls for the nationalisation of major banks grew louder and louder.
This in turn forced the shareholders of major banks to desperately transfer assets in order to minimise losses if the banks were nationalised.
A vicious circle had formed.
Banks and financial companies other than the Big Six were also victims as a result.
They didn't have to worry about their companies being nationalised, but international capital attacking Canada made them lambs to the slaughter.
The currency market collapsed, and the stock market began to collapse as well.
As a last resort, domestic capital in Canada could only transfer funds to the last safe haven – the bond market.
According to the seesaw effect, a stock market crash will prompt a boom in the bond market, which is pushed ever higher.
It was already a foregone conclusion that Canada would be harvested, it was just a matter of time and the market needed to squeeze all the benefits out.
Just at this critical moment.
The problems of the Chicago Consortium further deteriorated.
All the core listed companies of the Chicago Consortium were maliciously shorted.
Some of this was done by Xia Yu's side, and there were also the shadows of other consortia and financial institutions.
The source was the Continental Illinois Bank, which was at the centre of the storm. On 27 May, it had just received a loan of 3.6 billion US dollars from the Chicago Reserve Bank, but on 30 May, together with the 770 million US dollars originally owned by the bank, all of it was withdrawn on 31 May.
It was only eight days since the crisis had erupted!
The Continental Illinois Bank had lost 10.15 billion US dollars!
This accounts for more than a quarter of the bank's total assets!
And the rate of capital loss has not yet slowed down.
Continental Illinois Bank can only hope that the 16 banks will grant a 30-day credit line of 4.5 billion US dollars.
However, based on the current situation, 30 days is definitely not enough to solve the problem. Once the 30-day period is over, the 4.5 billion US dollars borrowed will become another non-performing debt and another burden.
Therefore, many of the designated 16 banks have already raised this concern.
The Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have been arguing fiercely about this, but so far they have been unable to reach an agreement.
They have had to implement a previously agreed decision, forcing the 16 designated banks to lend and complete the task as soon as possible.
This includes Wells Fargo, which needs to raise $300 million to lend to Continental Illinois Bank.
Wells Fargo President J. Ermanno Simmons approved the loan, but instead of immediately transferring the money, he called Continental Illinois Bank Chairman and CEO James McCormick and asked to meet with him.
On the morning of 31 May,
James McCormick hurried to a fine restaurant in downtown Chicago to meet with J. Ermanno Simmons.
James McCormick had no time to waste. As soon as he sat down, he asked straightaway, 'President Simmons, you said you have a way to help us. What is it?'
Armand Simmons was unhurried. He smiled slowly and said, 'President McCormick, don't worry. Let's order some coffee first, so the waiter doesn't get impatient.'
James McCormick's face twitched slightly, and he took a deep breath before speaking directly to the waiter next to him: 'A latte, please.'
Armand Simmons also ordered a cup of coffee, and then the waiter left the booth.
'Go ahead, President Simmons, what is the purpose of your meeting with me?'
James McCormick asked again.
Armand Simmons smiled faintly and said, 'Actually, I do intend to help you, but first, the prerequisite is that you are willing to accept my help.'
'The Illinois Bank of the Continent has basically drained its funds, and what's left are assets that cannot be dealt with in the short term, or assets that have already become non-performing after the outbreak of the crisis.'
'We at Wells Fargo have the funds, but how much you can take from us depends on how much leverage you can provide.'
James McCormick's heart sank, knowing that Alman Simmons was prepared to take advantage of the situation.
But he could only hold back his anger and ask, 'President Simmons, just tell me, what assets of our bank do you have your eye on?'
Armand Simmons gave a slight smile and said, "It's not that we're interested in your assets, we're just acting on behalf of our client.'
James McCormick let out an unconvinced "oh,' he didn't believe a word Armand Simmons said.
Of course, he had no desire to explore the matter at the moment. He just wanted to get money, crazy amounts of money, to save Continental Illinois Bank and keep his McCormick family alive.
'What assets?'
Armand Simmons said with a smile, 'I remember that your company has some business dealings with Motorola and owns a portion of its shares.'
'We are willing to fund the purchase of these shares and provide you with valuable funds.'
James McCormick found this extremely offensive, as if he were a beggar being given alms.
However, his desire for capital suppressed his resentment: 'Yes, our bank does own a portion of Motorola's shares, totalling 4.65%.'
'I was personally responsible for this stake in the beginning.'
'If you want, we can sell it to you, but how much are you prepared to pay?'
'300 million US dollars!'
Armand Simmons casually spits out a few words.
But it makes James McCormick's eyes pop, and he stares at Armand Simmons angrily and says,
'Are you kidding?'
'Of course not, I'm making a sincere offer,'
Armand Simmons said with a serious expression.
James McCormick said indignantly, 'No way, this is a gross underestimation of the value of this equity. Motorola has just launched a mobile phone, and even if I don't pay particular attention, I know that it has received very good market feedback. Motorola's future is bright, and even if you don't want it, someone else will.'
Armand Simmons responded with a carefree attitude, 'No one knows the future of Motorola. In history, countless great companies have disappeared, and Motorola is no exception.'
'If you don't sell it to me now, you won't be able to sell it for $300 million later.'
'Even if the Continental Illinois Bank fails, its assets will be liquidated.'
'Even if it doesn't fail, it will be taken over by the Federal Insurance Company or the Federal Reserve, or acquired by J.P. Morgan Chase, and you won't have anything to do with it, not even Motorola's shares, let alone the shares of other companies.'
James McCormick was infuriated by Yalman Simmons's rebuttal, his chest rising and falling rapidly, his gaze fixed on Yalman Simmons, but the latter's expression was calm and unperturbed.
Slowly, James McCormick's anger gradually dissipated, because what Yalman Simmons had said was highly likely to happen. He himself had already deduced the outcome many times, and the results were similar.
What was best for him was to save Continental Illinois Bank.
Even if he couldn't save it, he would need more money to buy time, so that he could save more assets for the McCormick family.
However, Motorola's market value had risen to 7.8 billion US dollars some time ago.
A 4.65% stake would be worth more than 360 million US dollars at market value.
If Arman Simmons was asking for 300 million US dollars, he was nothing less than a robber.
"300 million US dollars is impossible, it has to be at least 500 million US dollars,'
James McCormick said firmly.
'Knock, knock!'
'Sir, your coffee is ready.'
Just then, there was a knock on the door, and the waiter's voice came from outside.
The negotiation, which had almost turned into an argument, was suddenly interrupted.
'Come in!'
Armand Simmons said to the door, and then the waiter pushed the cart in and put the two cups of coffee on it in front of the two men: 'Enjoy.'
'Thank you,'
said Armand Simmons with a smile, before handing the waiter a tip of fifty dollars. The waiter left the booth with a surprised smile.
'President McCormick, you might want to calm down with a cup of coffee.'
'I'm always calm!'
said James McCormick coldly, but he gave in a little and lifted the coffee, taking a brief sip.
His favourite coffee in the past tasted bland.
After setting the cup down, he remained in his usual attitude: 'I'm still in the same mood, at least 500 million dollars.'
'President McCormick, I don't think we'll ever become friends.'
'By the way, we will abide by the decisions made by the Federal Reserve, the Federal Insurance Company and the Financial Institutions Supervisory Authority, as well as the apportioned tasks, but we will need some time to raise the 300 million dollars in credit funds.'
After saying this, Yalman Sears got up directly and prepared to leave.
James McCormick's face instantly turned dark, and it wasn't until Arman Simmons was about to walk to the door that he finally bowed his head and called out to Arman Simmons, 'Wait!'
'We can continue to talk.'
Arman Simmons, facing the door to the box, raised the corner of his mouth in a slight arc, then it subsided, and he slowly turned around and returned to his original position.
'I can sell you the shares at market value, but your $300 million loan must be in our bank account today.'
Armand Simmons said without haste, 'Calculating the value at market value is fine, but I have another request, which is of course also good for you.'
James McCormick's face turned black. Screw you and good for you, he would only believe this if he had a brain fart.
But he had to lower his voice because he was asking for a favour:
'Please go on.'
'I want to buy 13.8% of the shares in Northern Trust Bank.'
Yalman Simmons threw out another target.
Northern Trust Bank, one of the four major banks of the Chicago consortium, is currently run by the Crown family. Although the bank is only the lowest among the four major banks, it is indeed a large bank.
Continental Illinois Bank actually holds a 13.8% stake in Northern Trust.
Of course, Northern Trust is also in crisis at the moment. This bank previously fell into the deep pit of South American sovereign debt, and this time it was implicated by Continental Illinois Bank and also experienced a run on its deposits. Its capital chain is very tight and it risks bankruptcy.
Last year, Northern Trust's net profit was only 21 million US dollars, which is very poor compared to its bank assets of more than 28 billion US dollars.
However, it is undeniable that this is a large bank with over 28 billion US dollars in assets, although now there is a crisis and some of its assets have become non-performing.
It's just that...
If the 13.8% stake in Northern Trust Bank is sold, then there will be a big problem...
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