I'm in the county town, and you say I'm a big shot?

Chapter 746 Breaking the Stalemate and Counterattacking
Fang Qingye perked up upon hearing this: "Okay, I'll be right there."

As he dressed, he called Yue Kai, telling him to leave immediately.

It was raining in the morning, and there was no traffic jam before the commute time, so Fang Qingye arrived at the Huangpu branch in just half an hour.

When he went upstairs and saw the conference room, a wave of stench hit him as soon as he pushed open the door. The ashtray was overflowing with cigarette butts, empty coffee cups were overturned on the table, and everyone looked tired, but their eyes burned with excitement.

"Did you stay up all night last night?" Fang Qingye asked.

"Well, everyone originally said they'd go to bed at midnight, but it just so happened that it was a crucial moment for the analysis and no one wanted to leave, so we ended up working until dawn," Chen Danlu explained.

"Thank you for your hard work. Once this is all done, I'll give everyone a few days off so you can take your families on a trip!" Fang Qingye said with a smile.

He then called Yue Kai and asked him to buy breakfast nearby and bring it over before speaking to Chen Danlu.

"You say it."

“Let’s have our great hero, Cai Min, speak. It was she who finally found the key to the breakthrough,” Chen Danlu said.

Cai Min didn't stand on ceremony. Her pen scratched across the whiteboard with a harsh sound: "Alright, I'll recreate this perfect scam for Fang Xing and everyone else."

She first drew a clear diagram of the fund flow on the whiteboard:
Jinghai Bank → Three manufacturing companies (Xinsheng/Huachuang/Changjiang) → D.E. Shao structured investment SPV (a company registered in the Cayman Islands) → CDS bet with Goldman Sachs China
"The key lies in the second step!" Cai Min pointed heavily to the three manufacturing companies with her pen. "On the surface, we are providing these three companies with accounts receivable financing. But in reality, they have also signed a 'Funds Management Agreement' with Deshao SPV!"

"This is the so-called perfect financial solution that Goldman Sachs designed for them, the document they've never shown us," Chen Dan added from the side.

“According to this hidden agreement,” Cai Min continued, her voice tinged with excitement at revealing the truth, “after receiving our financing, the three companies were required to immediately transfer the funds to D.E. Shaw’s SPV account to purchase so-called ‘high-yield wealth management products.’ Goldman Sachs promised them that, while keeping their financing costs unchanged, they would also receive additional investment returns, which would effectively reduce their financing costs at Jinghai Bank.”

She surveyed the entire room and said, enunciating each word clearly:
"In other words, these three companies, seemingly the borrowers, actually acted as conduits for funds. Lured by the extra returns promised by Goldman Sachs, they unknowingly became accomplices in this scam, leading our funds into a real trap!"

Next, Cai Min drew out the complete chain of the scam:

"After the funds entered D.E. Shaw SPV, they weren't making any prudent investments at all; they were conducting a meticulously planned short-selling operation! They used the funds from our wealth management products to buy large amounts of CDS against US commercial real estate companies, essentially betting that these companies would default!"

The most insidious aspect of this structure is:
First, the risk is completely transferred – our investment funds have become bets on D.E. Shaw's short-selling strategy;

Second, the trigger was almost inevitable—with the Federal Reserve continuing to raise interest rates, it was only a matter of time before these highly leveraged real estate companies defaulted.
Third, the perfect transfer of profits—Goldman Sachs is both the product designer and the counterparty to the CDS, ensuring a guaranteed profit no matter what!

Fang Qingye stared at the complex relationship diagram connecting Shanghai, the Cayman Islands, and New York, her gaze finally settling on the names of several unfamiliar American companies.

Turning her head, Fang Qingye smiled at everyone and said, "It's truly admirable that someone can design such a complex and multifaceted financial product."

"Yes, Lin Wei's team definitely has outstanding financial analysts who can perfectly combine complex financial engineering techniques such as bankruptcy remoteness, CDS credit default swaps, Monte Carlo simulations, and gamma hedging."

Cai Min's tone was filled with admiration: "What's even more remarkable is that they've incorporated ingenious tax arbitrage into this structure, maximizing profits through transfer pricing, making the entire product appear flawless on the surface."

As Fang Qingye listened, Zhang Dongwen's image suddenly appeared in his mind, but he didn't say anything.

"Everyone, you've worked hard! Once Yue Kai brings back breakfast, let's grab a quick bite and then head back for some rest!"

Yue Kai returned carrying a large bag of soy milk and fried dough sticks. Everyone quickly finished eating, then yawned and left one after another. At this moment, Chen Danlu walked up to Fang Qingye and asked in a low voice:
"Fang Xing, now that the truth is out, what's the next step? Should we report to the Municipal Banking Regulatory Bureau and ask for regulatory intervention?"

Fang Qingye took a leisurely sip of soy milk, pondered for a moment, and shook her head: "No rush. Send a copy to Lin Wei at Goldman Sachs first. Aren't they waiting to see if we can break this deadlock? Let them see."

Upon hearing this, Chen Danlu looked at Fang Qingye with some surprise.

Fang Qingye glanced at his expression and said, "You're not laughing at me in your heart, thinking I'm just showing off to Lin Wei out of spite, are you?" Chen Danlu smiled, didn't reply, and took a sip of his soy milk.

“I want her to come to me on her own initiative.” Fang Qingye said calmly, “She dug such a big hole for Jinghai Bank, does she think she can just give up so easily? It’s not that simple, we have to get some interest back.”

"Understood." Chen Danlu nodded, then turned his gaze to Gao Pan, the Huangpu branch manager who had silently left, and asked in a low voice, "Then... what should we do with Gao Pan?"

As the branch manager and the direct approver of the project, Gao Pan bears an unshirkable responsibility for negligence in this matter.

"Let's talk about it after everything is completely settled," Fang Qingye said calmly, watching Gao Pan's departing figure. "As for the specifics of how to handle it, you can start thinking about it first."

Fang Qingye did not give a clear answer, but Chen Danlu already understood in his heart—it was unlikely that he could hold onto the position of the Huangpu branch manager.

"Okay, then I should go back too. You should get some rest as well." Fang Qingye neatly tossed the empty soy milk cup into the trash can and turned to leave.

Lin Wei was in a terrible mood today. A heavy rain this morning caused traffic congestion, and her recently purchased BMW 7 Series was accidentally scratched by a Buick, which broke her heart.

Back in the office, the assistant hurriedly handed him a document: "Mr. Lin, Jinghai Bank has given us a reply."

"So fast?" Lin Wei picked up her coffee, took a sip, glanced at the documents, and her expression changed drastically.

She composed herself and said to her assistant, "Call Zhang Dongwen over here."

A few minutes later, Zhang Dongwen knocked on the door and came in: "President Lin, you wanted to see me?"

"Look at this."

Zhang Dongwen picked up the letter on her desk, glanced at it a few times, and her face turned pale instantly. She stood there without saying a word.

"I really didn't expect that your old classmate Fang Qingye is so capable. He has figured out your financial products so well in such a short time." Lin Wei looked at Zhang Dongwen with a faint smile on her face.

“He’s always been very capable,” Zhang Dongwen responded softly, then suddenly realized something and looked up at Lin Wei: “President Lin, you don’t suspect that I leaked the financial structure to him, do you? I swear, absolutely not!”

“I have never doubted that.” Lin Wei shook her head, her gaze meaningful. “If you were to tell him, he wouldn’t have agreed to design this financial structure in the first place—after all, for Jinghai Bank, it was a dangerous trap.”

"But I never expected that you would ultimately force the reference entities for the CDS to be those few American real estate companies that are about to go bankrupt! I originally designed it to be Hengda and Country Garden in China!"

Zhang Dongwen couldn't help but retort, "If my plan had been followed, Jinghai Bank wouldn't have been in such a dangerous situation!"

"If they don't fall into the trap, how can Goldman Sachs China maximize its interests? Remember, everything you design must serve the company's interests!" Lin Wei responded coldly.

"Besides, do you really think these domestic real estate companies are safe? You're in finance, look at the Ponzi schemes these real estate tycoons are doing in the financial markets, isn't that dangerous?!"

Zhang Dongwen opened her mouth to argue, but was speechless and could only lower her head.

"Alright, Dongwen," Lin Wei's tone softened. "I called you here just to let you know the result. You've been working hard lately, so I'll give you two days off to rest."

"Thank you Mr. Lin."

After Zhang Dongwen left, Lin Wei walked to the floor-to-ceiling window and looked out at Lujiazui, which was shrouded in rain. She took out her phone and dialed a number.

"Hello, is this President Fang? This is Lin Wei from Goldman Sachs. I'd like to invite you out for a chat. Would it be convenient for you to come out to Maison Lameloise coffee shop in the Central Tower?"

(End of this chapter)