Originally, Xiaobu Shi's intention was to hand over Fannie and Freddie Group to financial companies such as Bank of America, let them take over, and then tide over the difficulties.
But I didn't expect that the pitfalls of these two companies would be so big.
In Feng Yu's view, it was Fannie and Freddie who wanted to die on their own. If they had not made false accounts, perhaps the matter would not have been so serious. But who made those shareholders so stupid that they made such a decision in order to protect their own interests
It is human nature for shareholders to pay more attention to their own interests. Seeing that the company is going to be ruined, even if it can survive the crisis, it will not be able to recover in a short time.
Another important point is that the shareholders of many financial companies have been cheated by the U.S. government’s policies. They have used their own money to fill the hole and protect the government’s interests.
When personal interests conflict with political interests, they choose personal interests. As for the investors who bought the bonds, stocks, etc. of their two housing groups and suffered heavy losses, they don't want to pay attention at all.
There are many ways for shareholders to get out, and they can do it by giving up some interests.
Now what they want to give up is the equity of Fannie and Freddie Group, which they are eager to do. Two years ago, Fannie and Freddie Group's equity was still a good thing, but now it is almost like poison.
Whoever holds it will lose it, and will continue to use their own money to fill the hole.
This hole is so huge that even the world's richest man like Feng Yu cannot fill it.
What Fannie and Freddie want most is to ask the U.S. government to take action, not only with money, but also with the introduction of some relevant policies, so that they can truly help Fannie and Freddie overcome the difficulties.
They used to be the largest sponsor of the US government and had a very good relationship with the Congress. But that was when they had money and could do many things to help the government.
Now not only do they have no money, but they also have to ask the government for money. Of course, the attitude of the other party has changed drastically.
Why did Feng Yu know that Fannie and Freddie Group were going to be taken over by the government
This was not found out by Ralph, but by Feng Yu's analysis of the current situation.
Once again, executives at Fannie and Freddie were replaced, and many of their shareholders disappeared. They successfully escaped through some complex financial means and by inducing other investors to buy their stocks.
It seems that they gave up a huge amount of property and lost a lot of money, but they also threw away an even bigger burden. In fact, they have already made enough money by holding the shares of Fannie and Freddie Group in the past few years.
It is actually very common for a new group of senior executives to be appointed.
When a company is not running well, it is normal for executives to be replaced. But none of the new executives held shares in Fannie and Freddie Group, and several of them were former political advisers.
This is a very strong signal, indicating Xiaobu's attitude of being very political.
And these were not enough to convince Feng Yu that Zheng Ax would take over Fannie and Freddie Group. What gave Feng Yu a positive answer was that several former executives of Fannie and Freddie Group... were all dead!
Especially those who died include the company’s senior vice president, chief financial officer and other important executives. What can people think of in this
What can people like the company's second-in-command in administration and the first-in-command in finance accomplish if they join forces
Tamper with the company's accounts, make false accounts, help former shareholders escape, and let some people behind the scenes leave with money bags.
These executives were all announced as committing suicide, saying that they could not bear the pressure and felt sorry for investors and chose to end their lives.
Only a ghost would believe this!
If their operations are not in violation of regulations, even if they make mistakes in decision-making, they will not bear much responsibility. After all, they are not the chairman or the CEO.
They can even resign and get rid of their current life. It has never been said that company executives cannot resign when the company encounters difficulties. I am not capable enough, can’t I give my place to someone with more ability
But they all died. Isn't it strange that they all committed suicide
However, these news were forcibly suppressed by the US government. Even some media tycoons did not make eye-catching reports this time. They only mentioned one sentence, because several of these media tycoons were also related to Fannie and Freddie. The group is inextricably linked.
Not only a few senior executives died, but also some middle-level managers in important positions, financial specialists, etc., also died. Of course, they were all "suicides."
This turns some accounts into truly dead accounts!
Originally, some accounts could be checked with the person who handled them, but now that the person handling them has turned into ashes, who should you check with
As long as these accounts have signatures and official seals, they are legal. Even if you are sure in your heart that there must be something fishy here, and some people have clearly benefited from it, you can only choose to admit it.
This is death without evidence!
This kind of thing also happened to Fannie and Freddie Group in the previous life, but it only happened next month, and the number of people was not as large.
It was only after this happened that Fannie and Freddie were completely taken over by the US government. Perhaps it was also due to the pressure of some people behind the scenes.
The situation is the same in this life. After this happened, although public opinion did not report it heavily, if it happened, it would still greatly affect the reputation of Fannie and Freddie Group.
Then the shares of Fannie and Freddie Group will continue to fall, and the bonds of Fannie and Freddie Group will be sold even harder.
It is no longer enough to simply inject capital into Fannie and Freddie Group, because some stocks or bonds will swallow up these funds instantly.
To put it simply, no matter how much money you throw into it, it will all be in vain, unless you can take out more than 5 trillion US dollars at once, collect all the bonds, and pay off all the accounts, then you can make money. .
This is simply impossible. They can't even solve the debts of Fannie and Freddie Group.
It has risen to 600 billion U.S. dollars. Compared with the assets of Fannie and Freddie Group at this time, which are less than 100 billion U.S. dollars, and the liabilities are more than five times the assets, how can they not go bankrupt
But once Fannie and Freddie go bankrupt, the crisis will be unstoppable, and the U.S. financial market will definitely not be able to bear it. Xiaobu Shi is about to step down, and what he wants to do most at this time is to prevent Fannie and Freddie from going bankrupt on his watch.
As long as he can delay his resignation smoothly, then the trouble can be solved by his successor. Isn’t that Oba Niu very vocal? Isn’t that Sheila also very ambitious? Come and sit in my seat and try it. I want to see how you solve this problem.
If Feng Yu had been in this position, he would have had no choice but to let the political department take over first, and then negotiate with some debt institutions to reduce the interest or delay payment to alleviate financial difficulties. In addition, if the government introduces some policies and spends a sum of money, Fannie and Freddie Group will not go bankrupt for the time being, and then they can slowly make plans for it.
No matter what, these two big pitfalls have sealed the political ax of the United States!
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