My Peninsula 2007

Chapter 496 Dividing the spoils
However, from a macroeconomic perspective, the principle of "too big to fail" always applies. The US government and the Federal Reserve cannot sit idly by and watch AIG go bankrupt on its own, nor can they wait for the mess it created to completely collapse.

Most importantly, what the US government and the Federal Reserve are really trying to save is not AIG, nor Bear Stearns or Fang Limei, but the US subprime mortgage market.

Take AIG for example. The best way to save it is to hold onto its nuclear-level bomb, the "credit default swap," and prevent it from exploding all at once. Otherwise, the United States cannot afford such a catastrophic financial collapse.

Therefore, even though there are strong and jarring voices in the United States opposing the bailout of Wall Street, and the Federal Reserve has remained silent on the issue of AIG, according to the insider information that An Rusong obtained from the "StockMavericks" group, the Federal Reserve has actually made the decision to save AIG.

This time, the Federal Reserve plans to use a massive $85 billion credit line to acquire nearly 80% of the shares of American International Group (AIG), directly turning this privately owned, largest insurance company in the United States into a state-owned enterprise, and then handing it over to BlackRock for gradual liquidation and sale.

Why did Susan secretly return to the United States at this time? It's precisely for this reason. After all, compared to liquidating the behemoth that is American International Group, the investment in NGN is still insignificant for the time being.

The saying goes, "When a whale falls, everything springs up." For many, the collapse of AIG was undoubtedly an epic financial disaster, leaving countless people bankrupt. But for others, it was an opportunity to strike it rich, such as BlackRock.

Members of the "StockMavericks" group have made an assessment that although AIG is currently in a state of near financial collapse, it still has several profitable businesses, such as AIG Private Bank, which is responsible for wealth management, Canada Life Insurance, and Hartford Steam Boiler Inspection and Insurance Company, which specializes in insurance for the machinery industry.

According to speculation among netizens, once BlackRock obtains authorization from the Federal Reserve, their first step will undoubtedly be to separate these high-quality assets from AIG and then sell them to BlackRock's related parties at a "preferential price".

Don't worry, while AIG shareholders may suffer some losses, they won't lose too much. At least they don't have to worry about their company shares becoming worthless. Those who participate in the feast will certainly not lose money; on the contrary, they can make a fortune.

As for the real losers, it's none other than the US government, or more accurately, the American taxpayers who pay taxes to the US government.

Speaking of which, An Rusong, who holds a U.S. citizenship, is now also a taxpayer of the U.S. government, and a portion of that $850 billion belongs to him.

On the rooftop of the "House of Dior" flagship store on Apgujeong Boutique Avenue in Cheongdam-dong.

Wearing a dark blue suit, An Rusong walked through the main entrance of "Café Dior". Facing the waiter who came to greet him, he raised his palm to indicate that the waiter should wait a moment, and then waved to Mike in front of a booth not far away.

Mike saw him too, and was standing up from the booth, greeting him with a big smile.

He took his wallet out of his pocket, casually pulled out a green dollar bill, and handed it directly to the waiter next to him. An Rusong walked towards Mike, and when they were still a few steps apart, he opened his arms and smiled, "Hey, Mike, welcome back."

Mike didn't say anything, but simply hugged him and patted him hard on the back twice.

"How is Jia Silin?" Pushing the other man away from her embrace, An Rusong took his hand and asked with a smile.

“She’s very nice. Before she came, she specifically asked me to give her my regards,” Mike said with a smile.

Currently, due to a job transfer, Mike and his wife have returned to the United States. This time, Mike specifically flew to Seoul to meet with An Rusong.

"Thank you," An Rusong said, pulling the other person back to the booth. As they sat down, he took out an exquisite gift box from his pocket and handed it to the other person, saying, "This is a gift I prepared for Eileen. I hope she likes it."

Inside the gift box was an 18K gold enamel bracelet by Ellen Bazaar, which was quite expensive. Mike opened it, glanced at it, and without any further pleasantries, placed the gift box beside him and said with a smile, "Eileen will definitely like it. I thank you on her behalf."

An Rusong shook his head, turned to the waiter who came over, said a few words to him, and ordered himself a cup of coffee.

"Is it all over?" After the waiter left, he placed his hands on the table of the booth, looked at Mike, and asked in a low voice.

“It’s over,” Mike said, his face flushed. He nodded vigorously, then reached for his briefcase on the chair next to him, took out a document, and handed it to An Rusong, saying, “This is your share.”

After An Rusong took the documents, he continued, "You should have brought a lawyer; this is a considerable sum." An Rusong, holding the documents, glanced at him and smiled, "The fewer people who know about this, the better. Besides, I have no reason not to trust you."

He waved the document in his hand and added, "No matter how much money this is, it's just a windfall. I never thought I could make much."

After he finished speaking, he looked at the document in his hand again. When he saw one of the numbers, he blinked and exclaimed in surprise, "How come there are so many?"

Mike grinned smugly, raised his right hand, spread his fingers, and whispered, "Think about it, we started shorting at $57.4 per share and exited when it was less than $8 per share. The whole process..."

As he was speaking, a waiter carrying a tray came over and placed a cup of coffee in front of An Rusong.

“That’s the result,” Mike said, shrugging as the waiter left. “However, we’re not the ones who made the most money. Your partner made the most money, and if nothing unexpected happens, Lehman Brothers will probably fall into their hands too.”

Mike was referring to the project that the members of the "StockMavericks" group had been operating over the past few months: shorting Lehman Brothers stock.

Just three days ago, Lehman Brothers released its financial report for the third quarter of this year. Unlike its past attempts to conceal the truth, this time Lehman Brothers was clearly ready to take drastic measures. They made no further attempt to hide anything and directly announced that Lehman Brothers had suffered a huge loss of more than $39 billion in the past three months.

As a result, this giant investment firm, known as "Wall Street's fiercest bulldog," lost all its credibility almost overnight, and its stock price plummeted.

Over the past few months, Barclays Bank of the UK and Bank of America of the US have been claiming to be in talks with Lehman Brothers regarding a potential acquisition. There have also been several reports that the acquisition negotiations have entered the final stage and that Barclays Bank will be the final buyer.

Moreover, in the past few months, rumors have been circulating in the financial world that the Federal Reserve would not stand idly by and watch Lehman Brothers go bankrupt, and that the US government would inevitably provide financial support to this large investment bank.

However, the release of Lehman Brothers' third-quarter financial report shattered all the previously anticipated positive news. First, Washington made it clear that it would not waste taxpayer money on Lehman Brothers. Then, Barclays and Bank of America announced that negotiations with Lehman Brothers had failed.

At this point, Lehman Brothers' demise was imminent, and its stock naturally became a complete junk stock. Before that, the "StockMavericks" speculators had already liquidated their positions and left the market.

The documents Mike had previously given to An Rusong were his gains from this speculation. Of course, for this money to be transferred to his hands, a series of procedures had to be followed, which was why Mike had made a special trip to Seoul this time.

"This is..." After reading through the documents in his hand from beginning to end, An Rusong's attention was drawn to the last document.

"A free gift," Mike said with a smile, after taking a sip of his coffee and glancing at the document.

"A free gift?" An Rusong looked at the property information in his hand and chuckled, "Isn't this free gift a bit too valuable?"

“But compared to our income over several months, isn’t it somewhat insignificant?” Mike put down his coffee cup and laughed. “Besides, buying it will also relieve some pressure on the United States of America. Hehe, long live America, won’t you?”

The property information in An Rusong's hand is for a high-end residential community called "Ward Village" in Hawaii. It is certain that if this mansion had been before the subprime mortgage crisis, it would have been extremely expensive, and even money could not buy it. As for now, it is, to some extent, a distressed asset.

"Thank you," An Rusong said without exchanging pleasantries with Mike, setting the property information aside. "I really like it."

“Then it’s yours,” Mike said with a smile.

An Rusong took out a pen from his pocket and signed the documents one by one where signatures were required, while changing the subject and saying, "Shouldn't we have a proper celebration for this victory?"

(End of this chapter)