Chapter 283

[283] Will Emerson, vice president of risk management at Wall Street 4 Goldman Sachs, was looking at the contracts he had signed last Friday for a long time.

Standing beside him, the red-haired man waiting for the vice-president to open his mouth, finally unable to bear, opened his mouth first.

"Let's get in touch with Miracle Investment first."

"Wait a minute. It's the first thing to know the exact amount. "

Wil Emerson vice president was still jaw-dropping and did not take his eyes off the contract.

He said he waited for his cell phone to ring.

"Call me."

Having a pen, he quickly wrote down the numbers he heard on his cell phone.

"Are you sure about this?"

He tapped the paper with the numbered pens and checked again and finished the call. Will Emerson was already speculating.

He told the redhead man who was by his side.

"Power to the conference room. Right Now!"

The redheaded man ran out horrifically as the vice president fell.

Will Emerson confirmed the numbers again.

A figure of 70 billion circled with a pen crushed my chest.

As Emerson vice president went into the conference room, a dozen eyes turned to him.

Emerson threw a question to a man without saying another word.

"Michael, what is your current default status?"

Four

"Subprime mortgage loan! The debt repayment status after variable interest rate application! "

"It will be 3% fringe."

Emerson 's frown on Michael' s confident answer.

"Fringe? Is it? Do not guess. Say the exact number. Give five minutes. "

Michael began to knock on the keyboard.

"Last Friday, Miracles bet $ 2.8 billion on mortgage-backed securities to become dormant. Their plan was $ 3.5 billion, but I lowered my betting a few places. We can imagine that the contract is not different from ours, so if they win … I'll take almost $ 56 billion. "

All the people in the conference room did not shut their mouths.

It was Miracle's act. It was the topic of drinking all weekend, so no one knew, but the first time I heard the entire amount of the bet.

F, but the vigilant expression of the vice president barely bothered.

They poured $ 2.8 billion on Miracle, but Goldman Sachs had only $ 48 million, so I was wondering if the vice president was upset like that.

"There were also people who were like Miracle before. But the amount was not big? "

At the vice president 's end, someone nodded his head and noticed someone unfamiliar.

"Miracle is a place where reliability is our top priority. I do not think it's odd that I poured $ 2.8 billion into a place where I am extremely reluctant to lose principal. "

Emerson The money I earn each year as a mortgage loan is $ 500 billion. $ 2.8 billion is a tribute, but it's only a penny. "

When someone raised the objection, someone else who had the courage was optimistic.

"At the Las Vegas Securitization Forum, we reported a 5 percent loss in subprime mortgage-related securities."

luke

"In the keynote address of President Bruce Miller of Bear Stearns … "

Emerson voiced his opinion.

"On the basis of 5%? Did you check? "

Michael, who grasped the debt default situation when he was unable to answer and was optimistic, saved him.

But the figure he identified made everyone in the conference room a sinner.

"Ameson, since this year … "

"How much is it? Just say numbers! "

8.

The crisis began to feel most certainly felt by Michael. He saw a steep rise in the graph of defaults.

"If this trend is going to be over 9% next month. 10% line is in front of my eyes. "

Michael also announced important facts that should not be hidden.

"The floating rate has already been more than four times the fixed rate. This is the price to go through all the houses that have been mortgaged. "

Will Emerson 's eyebrows shook.

The numbers from the keynote speeches at the Securitization Forum are unfounded. The forum is just a bunch of tradesmen who sell their seats to sell more derivatives.

Rosy future, safe investment, money feast … . Are not they just busy sorting out these massages?

Will Emerson's vice president of risk management alone is due to his meticulous insight. It was meticulous and meticulous enough to prevent the dam from collapsing by looking for a very small ant hole in a huge dam.

But he seemed to have to write a resignation today.

It is not an ant hole, but there is already a big crack and water. The dam soon seemed to collapse.

It is too late to blame oneself for not having done anything because it is blinded by splendid money banquet.

From now on he knew exactly what he had to do.

We have not been able to detect risks in advance, but we must minimize the risks already encountered.

It is now time to pack up and climb the escape route before the dam collapses.

Wil Emerson voiced the phone on the conference room table.

"Send five security guards immediately."

The people who gathered in the meeting room in his sudden action were confused but could not open their mouths. This is because the vice president's firm expression was unheard of.

Emerson said when the guard arrived.

"Do not move around here all the while I go. Put your phone on the table. "

When he saw each other, he screamed.

Quick Or you're fired from here! "

People quickly took out their cell phone and put it on the table.

The vice president said to the guard.

"I can not turn off all phones and use them. The same goes for laptops. And they pulled out the phone line, and they keep these people out of the conference room. I'm done for a while. "

When the guard picked up his cell phone, Will Emerson ran toward Goldman Sachs' presidential office.

The conference room turned into an isolated island completely blocked from the outside.

* * * "John. It's an emergency. "

"Sit down once. Drink a glass of water. "

John Rogers Chairman Goldman Sachs calmed down Emerson vice president Will Emerson.

"Is that because of Miracle?"

"Yes, but the real problem is elsewhere … "

President Rogers raised his hand and pointed to the TV and blocked Emerson's mouth.

"Look at that."

The CNN emergency news was on the TV.

"New Century Financial, the second-largest sub-prime provider, filed for bankruptcy protection on June 2 in the Delaware Wilmington District Court. The company also announced restructuring, including reducing 3,200 employees (54%) and selling their affiliates.

Recently, subprime mortgages have risen in interest rates, housing prices have fallen, and they have suffered from hardships. Last year, they offered loans worth nearly $ 60 billion, but stopped loans last month.

We also explained that CIT Group and Greenwich Capital agreed to fund $ 150 million, but stocks have already plummeted 97% from last year. "

Will Ameson closed his eyes.

Him!

It has already burst.

"Do you know who is the biggest creditor of New Century?"

Emerson only nodded his head to the president's question. It is Goldman Sachs. And all the financial institutions in the top 10 are major creditors.

"Miracle contracted a $ 1 billion swap?"

OK.

"Rachel Is the woman superior in intuition? Or a close mathematician? Just one day before I get hit. "

"John, Miracle's $ 1 billion is nothing, we have to sort it out sooner than we have CDOs (debt-equity securities)."

Unlike the vice president, Rogers still had room.

"What if we start organizing the CDO? Can I see it elsewhere? All mortgage-backed securities will pour out in an instant? "

"Is not it just that I can not keep watching?"

Will

Four

"Do you know why Miracle contracted for a billion dollars?"

Emerson was thrilled by the chairman, who slowly and unanswered questions.

"A billion dollars is not a small amount."

Jeni The total amount is $ 60 billion, "he said.

"It's $ 56 billion."

"Even if it is 56 billion, it is not 2% anyway. Miracle knows exactly what we're capable of. We've already signed a lot of credit default swaps. "

"How much, too … ? "

"25 billion dollars."

Emerson knew that the chairman's relaxation was coming from giving up, and he realized that there was nothing he could do as a vice president of risk management.

Rogers chuckled and laughed as he watched Emerson out of his mind.

"Do not do it. We have $ 10 billion in it. "

Four What is that … ? "

"We were also covered by insurance. You know the Gary Trust, who sprang from our company? "

"Yeah. Is not it a proprietary investment team? It consists of outstanding talents … "

"Yes, the company and our Goldman Sachs have signed a credit default swap. The subsidiary has earned $ 10 billion, so I'm going to have a little breath. "

I did not say anything because I had no words.

The headquarters spoke about the housing market going up, and the subsidiary betted on the housing market being ruined.

What would Goldman Sachs shareholders think? It is obviously a betrayal of business ethics.

If Emerson knew that $ 10 million out of $ 10 billion would have been signed by President John Rogers' individual, he would have been desperate.

John Rogers stood up, kicking the couch.

"It's late, but we're playing right? I have your resting papers, tell them to dispose of them as soon as possible. You can prevent this from happening. "

The inside of the company is going to do it, but the outside has already glowed.

Other companies are not stupid. I will analyze why Miracle swept away and they will come to the same conclusion.

Wall Street has already burst a bomb.

It is only inevitable for individual investors to know this as late as possible.

As always, is not the largest victim a regular investor?

* * * "Goldman Sachs is the fastest. I'm trying to digest the pouring out of the volume? "

Rachel, suffering from a telephone call all day long, breathed a sip of coffee.

"I will throw it everywhere tomorrow. I will also have a stupid place to buy it. "

"Now we have enough time for everyone to know that US mortgages can not be repaid."

The dark shadow did not disappear in Rachel's face.

Howard I understand that mortgage securities are just pistols. "

"You're talking about derivatives."

"Huh. Do you know what the size of a CDO-linked synthetic derivative such as a compound CDO, a square CDO, a double CDO? "

"Yeah. More than 20 times. "

Rachel shook her head as she watched me speak quietly.

Why I hear the sound of the world economy collapsing, so I have to fall in love? "

No. The world economy collapses, and you've scratched a lot of money. But I do not feel inspiration. "

"Joy and sadness hit each other and offset it. Millions of good citizens will travel across the street because of the wealth of the US that will make $ 56 billion but will evaporate. I can not be happy forever. "

In fact, it is not a good thing to earn money. The real joy is that this crisis is a bullet that will defeat the Vibrator Vice President.