Feng Yu once told Minsheng Bank that the U.S. market at this time was very chaotic, with risks and opportunities coexisting, and he must be informed of large-value transactions. ￣︶︺sんцge浼镄嗹尛螞Read DU棢つＷｗ%Ｗ．%kaNshＵge.lā
This time, someone wanted to borrow US$3 billion in short-term loans. This number was very large, far exceeding the total amount of deposits taken by Minsheng Bank in the United States. Of course, it had to be reported to Feng Yu.
However, according to the person in charge of Minsheng Bank in the United States, it should be possible to borrow it, as the other party's reputation is very good.
The person who came to lend money was the New York Branch of the Bank of America. The Bank of the United States used to use the name Bank of America in China because they were a private joint-stock commercial bank. Using the name Bank of the United States was worried that people in China would think it was a bank owned by the American government.
But in fact, although this is a joint-stock commercial bank, it still has a great relationship with the US government. For example, the families of these bank shareholders have people who hold positions such as parliamentarians.
In less than a year, many banks in the United States have gone bankrupt. Lending between major banks has become more and more troublesome, and the review has become more and more strict.
The interbank interest rate was also raised by the Bank of America and others. It is precisely because of this that it accelerated the collapse of many small banks. Anyway, big banks mainly lend money to foreign countries. Of course, it is best to get more profits. If small banks fail, they will still have ways to recover their capital.
"Mr. Feng, this is a document from the Bank of America, which gives us a high interest rate. And we have analyzed that after a large number of layoffs, the Bank of America's costs have dropped a lot, and it can completely weather this crisis."
Feng Yu briefly looked through it and threw the document aside: "This interest rate is not the highest. Tell them that we want the highest interest rate and give priority to repayment."
The so-called right of priority for repayment means that when the contract expires, Bank of China can ask Bank of America to be the first to repay their money, because Bank of America may have borrowed money from multiple banks at this time.
Prioritizing repayment can reduce the risks of Minsheng Bank. However, those that require priority repayment generally have relatively lower interest rates. The risk is low, and the profit is naturally low.
Feng Yu now wants the highest interest rate and priority in repayment. It is clear that he wants to take advantage of the situation.
The Bank of the United States has been requested by the Congress and the Office of President George W. Bush to help some companies tide over the difficulties and take over some financial companies that have filed for bankruptcy. Of course, the U.S. government will also make certain commitments to the Bank of the United States, such as guaranteeing their Debts must be collected on time and some other conveniences will be provided.
Why does Xiaobu Shi have such a good relationship with Bank of America? The main reason is that the shareholders behind Bank of America are actually the firm supporters of Xiaobu Shi.
Behind Xiao Bushi stood many arms dealers. Everyone knew this, so as soon as he came to power, he launched many wars, which greatly helped those arms dealers make money.
The headquarters of the Bank of America is located in California. What is the most important industry in California? Arms!
So why does the Bank of the United States support Bush’s decree? Because this is a transaction in itself. And in the future, they will continue to promote people from the Bu Shi family and continue to maintain their cooperation.
Even now, they cannot watch Xiao Bu Shi fall. This will affect the reputation of the Bu Shi family and have a great negative impact on their future cooperation.
Besides, even if they are grasshoppers on a rope, of course they have to jump to one end.
What's more, they won't necessarily lose money by helping the government take over some companies that are on the verge of bankruptcy. First, some non-performing assets will be divested, and then they can take the opportunity to expand their business scale and obtain some high-risk bonds.
A single policy from the government can make the bonds in their hands appreciate significantly, thereby getting rid of losses and making good profits.
In the previous life, the Bank of America also supported Xiao Bu Shi. In this crisis of Fannie and Freddie Group, didn't the Bank of America also take action? From a business perspective, Fannie and Freddie are definitely doomed, but if the government is willing to help, then Fannie and Freddie will have time to turn around.
The Bank of the United States' short-term lending at this time must be to wipe out the situation of Fannie and Freddie Group, or it may have found other ways to make money.
Since banks in the United States have come to Minsheng Bank, a foreign bank with no reputation and no leaks, it shows that they really need money.
Why not take advantage of the opportunity and ask for the highest interest and the best conditions
Anyway, Bank of China and Bank of America are not partners. We are still competitors. If we don’t start now, how long will it take
The president of the New York branch of the Bank of America frowned at this time. This public opinion bank was too aggressive. It not only demanded the highest interest rate, but also had priority in repayment.
They were still hesitating, but the other party proposed another one, settling in RMB at the current exchange rate. In other words, if you borrow three billion US dollars now, based on the exchange rate of 1:7.4, it will be about 22.2 billion RMB.
When you repay it, you will have to repay it according to 22.2 billion RMB converted into US dollars, and the interest will be the same.
But everyone knows that although the RMB has not appreciated strongly at this time, the US dollar is depreciating. By the time they repay the loan, the principal originally worth US$3 billion may have increased to nearly US$100 million!
Originally, this gap could make up for the interest expenses of Bank of America, but now, they will lose more.
At this time, the Bank of the United States is following the requirements of its superiors and taking over some of the business of Fannie and Freddie Group to help these two companies tide over the difficulties. Of course, it can also exchange for some other conveniences.
Originally, small-scale banks like Minsheng Bank were not within the scope of their short-term lending considerations. With such a small scale, even one billion US dollars might not be available, right? But after they found out that the major shareholder of Minsheng Bank was Feng Yu, they felt that this bank would definitely be able to come up with money.
But they didn't expect that the Minsheng Bank would be so greedy and put forward such harsh conditions!
Other commercial banks in the United States are also in difficulty at this time. Some of them, such as Citigroup, are pretty good, but they are unwilling to lend to the Bank of the United States because they do not want the Bank of the United States to take the opportunity to grow.
U.S. banks don’t have much to choose from, and they’ve already borrowed from Europe, which is simply not enough. They couldn't let go of any of their colleagues who could borrow money at this time, so even if they complained that the bank's conditions were harsh, they could only grit their teeth and agree.
Now they just feel that as the first commercial bank to raise interbank interest rates, did they make a mistake? Originally, they had always borrowed money from abroad. Of course, the higher the interest rate, the more cost-effective it was.
But now it's their turn to borrow money, and the high interest rates have burdened them.
By accident, I shot myself in the foot!
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