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Text Chapter 1313 It¡¯s better to be brave

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    Xiao Qi was very calm. After the meal, Tong Wencong drank black tea and Xiao Qi drank oolong tea. While talking and laughing, Xiao Qi did not ask Tong Wencong's reason for coming.

    Whoever wants something will speak first, and Tong Wencong is naturally the same.

    "Ahem! Qi Shao, I haven't congratulated you yet!" Tong Wencong said with a smile on his face: "We still underestimated the harm of this subprime mortgage crisis! Have you heard about it? Musashi Commercial Bank  They have filed for bankruptcy protection! Japan¡¯s central bank has also started emergency negotiations and is preparing to inject US$10 billion to rescue them.¡±

    "You are looking for death, no one can blame you." Xiao Qi smiled faintly, "The government should not consider them, but Sumitomo Mitsui Banking Corporation!"

    Sumitomo Mitsui Banking Corporation is the second largest bank in Japan. Its scale is so large and it involves so many businesses that ordinary people cannot imagine it.

    Japan's six major consortiums control hundreds of billions of dollars in wealth, covertly and covertly, of which at least one-fifth is managed by Sumitomo Mitsui Banking Corporation - Mitsui Consortium and Sumitomo Consortium are originally the core of the six major consortiums.  .

    In addition to being cheated by Xiao Qi, Sumitomo Mitsui Banking Corporation was also cheated by several Japanese funds. With a large amount of subordinated debt in their hands, it should be too late to cry now.

    Small and medium-sized banks like Musashi Commercial Bank are better. If Sumitomo Mitsui Bank has a problem, the shock it will bring to the Japanese people is not a joke, so Xiao Qicai said here that the Japanese government should be concerned about  Sumitomo Mitsui Banking Corporation.

    Secretly, a large amount of funds must have been injected into Sumitomo Mitsui Banking Corporation. If Japan dared to be more shameless, he could even wipe out the subprime debt crisis and directly pay compensation, but take out Sumitomo Mitsui Banking Corporation.

    ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ???

    "That's exactly why I came here." Tong Wencong said.  "The subprime debt crisis in the United States is getting more and more violent. I have discussed it with several fund managers and feel that we can attack again to make the crisis more violent!"

    "You want to go to Japan?" Xiao Qi asked.

    "No, whether I go to Japan or not, it's already a solid victory." Tong Wencong looked around.  "Qi Shao, I wonder if you know something like CDS?"

    "CDS? What is this?"

    Xiao Qi expressed surprise just right, but his heart was rolling like waves.

    finally come!

    CDS is the abbreviation of "Credit Default Swap Insurance" in English.

    It is a bit difficult for everyone to say this term.

    So let¡¯s take a simple example.

    For example, an investment bank lent 1 billion euros to a country to help it make some false accounts.

    ¡°But this investment bank also knows the country¡¯s fundamentals and knows that it is very likely that it will not be able to spend the 1 billion.

    So for the sake of insurance, the investment bank found another bank.  I bought a 20-year insurance policy of 1 billion euros. Once the country cannot repay its debt, the bank will pay the 1 billion euros at that time.

    ¡°This kind of commercial insurance purchased by investment banks is CDS.

    ? ? Okay, you can put it more straightforwardly.

    This country that has repeatedly falsified its accounts and cannot even afford to pay back 1 billion euros is called Greece.

    This cunning and smart investment bank that helped create false accounts and then actively avoided losses is called Goldman Sachs.

    This bank that accepts CDS insurance is not "a German commercial bank", it is Germany's second-ranked Deutsche Commerzbank.  That is, the unlucky family that bought the subordinated debt portfolio that Xiao Qi had already cheated once.

    ?Then the series of events caused by this became the ¡°Greek debt default crisis¡± that everyone is familiar with.

    in other words.  The Greek debt default crisis is actually nothing, it is a mess anyway.

    The key unlucky thing is the banks that undertook CDS insurance for its national debt. They were so unlucky that they only earned a small amount of insurance premiums and ended up losing hundreds of billions of euros in total.  As a result, the entire Eurozone was in a state of collapse. When Xiao Qi traveled back through time, he had not recovered.

    "How could Xiao Qi not have heard of such a famous and infamous CDS?"

    But the young man must not say that he knows, and knows more than Tong Wencong.  He could only act stupid.

    Tong Wencong also has no doubt that there are too many derivatives in the financial field. Except for the elites who create them, few people say they can understand them all - the elites who were deceived by the financial derivatives they created, and  Not one or two, let alone othersThere are so many people.

    So he mysteriously explained to Xiao Qi what CDS was, and then said: "Qi Shao, now Goldman Sachs, Merrill Lynch and several other investment banks are interested in selling their CDS policies at a very cheap price.  It¡¯s incredible, the minimum is 30% off, and the maximum is only 40% off! After discussion, several of us fund managers thought this deal was very good and wanted to take it all in. Do you want to join?¡±

    This is seeking death!

    Xiao Qi swallowed his saliva.

    "Things like CDS are like a gunpowder magazine for whoever holds them. You can't even hide, but you still run into them?"

    yes!

    In the end, those banks gritted their teeth and paid compensation for these CDS, but then turned around and sued the investment banks and funds that held these CDS in courts in various countries, and directly included them in the blacklist. The Court of Justice of the European Union and the US Court of Justice even  Hefty fines were issued to punish their immoral behavior!

    Compared with CDS insurance, subordinated debt is easier to say, because before the outbreak of subprime debt, everyone thought that high-yield subordinated debt was a high-quality financial product, and many countries and big banks were buying it.

    ¡°If someone really traces Xiao Qi¡¯s involvement in the future, Xiao Qi can also use this reason to excuse himself.

    But CDS is a naked deception and a trap, which cannot be explained by any reason!

    They private equity funds may not care about reputation, but Xiao Qi wants face!

    What a good reputation Xiao Qi¡¯s Fairy Company has. If it really takes such a big blame, a company with such a bad reputation, how will it do business in these countries in the future?

    Originally, those foreigners were very dissatisfied with a Chinese company making money so arrogantly in their country. If they brought this matter up to divert their anger, those people who are in financial crisis would still buy fairy products in the future.  The company's products?  It¡¯s already very polite not to just buy a villain to prick the villain!
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