Wall Street bigwigs!

Chapter 38 The Whistleblower

Green waved his hand in response.

"Nike stock can only be pledged as collateral, not sold. If I could, I would even be willing to continue to increase my holdings in Nike."

Similarly, although John is a securities professional, his vision doesn't extend to ten or twenty years into the future.

Nike's stock is like a ballast stone. Green will not only not sell, but will continue to increase his holdings until it reaches Nike's 4.99% disclosure threshold.

"Okay, if you think it's a good idea."

Seeing how serious Green was about it, John didn't dare to offer any further advice. He was simply giving his boss reasonable suggestions based on his own experience; whether the boss would follow them or not was another matter entirely.

"That's all for today. John and Selgen, take the documents with you. We'll start preparations for the company's opening tomorrow. Be careful to keep it confidential," Green said.

"I'll negotiate the dismantling fee with the bank; the 8% lending rate is a bit high."

Mary, I need you to help me prepare a compliance approval document for R&F.

I think we can negotiate the short selling fees.

Mary nodded upon hearing this: "No problem, the documents are all ready, I can give them to you this afternoon."

After the four people left, Green took a pen and did some calculations on a piece of paper.

锐锋证券自有本金2000万,预留40%后还剩1200万可用于美股做空,加上4倍槓桿就是1200万X4=4800万。

After deducting the reserved funds, the remaining $1800 million in R&F Fund, plus leverage, is $1800 million x 4 = $7200 million.

In total, $1.2 million was leveraged to short the Mexican peso and related U.S. stocks.

He put down his pen, knowing that he couldn't short a sovereign nation with his own funds alone.

So he decided to learn from Soros and become a whistleblower first.

~~~~

The following day, R&F Securities and R&F Fund quietly opened their doors at the Barclays North American headquarters building.

Although they kept a low profile, quite a few people came.

Green's friend Richard personally delivered an opening gift to his home.

Goldman Sachs, Wells Fargo, Merrill Lynch, and others also sent representatives to make the arrangements on behalf of their companies.

The owner of SATA LLP, along with Morris and the Born team, also came to visit the opening.

Others, including representatives from the NYSE, NASD, and SEC, greeted Green and presented him with gifts, accompanied by Mary.

A week later, Green received Peter Pan, editor of Barron's, in his office.

The reason is that his article published in Barron's a few days ago, titled "Respect the Laws, Not Fantasies: Beware of the Mexican Peso Crisis," caused quite a stir in investor circles.

In his article, Green refutes the current Mexican economy from several aspects.

First, Green presented concrete data to refute Mexico's current economic structure and its extreme reliance on oil exports for fiscal revenue.

Oil revenues account for 60% of Mexico's total fiscal revenue. The impact of the 30% drop in international oil prices in 1986 has not yet subsided, and the fiscal deficit has climbed to 8.2% of GDP.

Furthermore, the Mexican government lacks diversified revenue streams to hedge against risks.

With oil prices remaining low and volatile, the Mexican government is unable to reduce its deficit or stimulate the economy through fiscal stimulus.

Second, Green argues that the Mexican government's foreign exchange reserves are currently unable to withstand the dual burden of foreign debt and imports by using the vicious cycle of external debt pressure as an example.

Third, Green exploits the current inflation rate and exchange rate differential in Mexico.

He stated frankly that a fixed exchange rate system would directly weaken the international competitiveness of Mexican exports.

This could further worsen the trade deficit, creating a closed loop of high inflation, overvalued exchange rate, and trade deficit.

Subsequently, many scholars and experts in the financial and media circles criticized Green's views, either publicly or privately.

Moreover, they uncovered Green's identity information in a very short time.

When they saw that Green was so young, they cursed him, calling him a brat trying to attract attention.

Some even publicly criticized Green within the industry for deliberately creating panic in order to defeat Ryzen.

Just two days later, Green's submission to Barron's was reprinted by The New York Times.

Of course, the purpose of reposting this is not to promote Green or Ruifeng.

Rather, investors are generally wary of the market after last year's stock market crash.

The New York Times astutely noticed this topic and artificially generated traffic.

Therefore, when the New York Times reprinted Green's article, it also published a rebuttal article by renowned financial expert Harry Thorne.

Harry Thorne, founder of Thorne Capital, is a veteran investor in the Latin American market on Wall Street.

An investor with over 30 years of experience on Wall Street, 25 years of deep involvement in the Latin American market, and firsthand experience of the 1982 Latin American debt crisis. (Enhancing credibility)

Green, of course, reads Harry Thorne's articles.

Furthermore, perhaps in an effort to boost traffic, the New York Times deliberately bolded the article's title: "The Peso Panic: The Shortsightedness and Misleading Speculation of a Young Child."

In his article, Harry Thorne suggested that Greene had portrayed the Mexican peso as a bubble on the verge of collapse.

It is pointed out that Green's arguments are nothing more than theoretical arguments based on publicly available data, and he does not understand the underlying logic of Latin American politics and economics at all.

The rebuttal argued that Green had not deeply cultivated the Latin American market and that his analysis of the Latin American market was highly subjective. At the same time, it brought the newly established Ruifeng to the forefront, and its intention was self-evident.

The Mexican central bank can provide implicit support for the peso from behind, as Mexico is, after all, a sovereign nation capable of debt restructuring, and the peso's fixed exchange rate system has sufficient resilience.

The so-called inevitable adjustment that Green mentioned is purely a deliberate attempt to create market panic.

President Salinas and his core team had already initiated a plan to privatize state-owned enterprises.

Such remarks were originally only considered as a discussion of opinions within a small circle.

As a result of the New York Times' actions, many people saw veteran economist Harry Thorne publicly humiliating Green in the media.

The article caused quite a stir within R&F.

Fortunately, Green's authority as the boss had not yet dissipated, so they dared not discuss these matters openly.

But as employees, they really hoped that their boss would stand up and refute them.

What veteran economic figures? They're all relics from the last century. Haven't you heard of the younger generation surpassing the older generation?

They prefer to call themselves emerging economists.

When Chen Ningning, employee number 11, ran into Green in the beverage area, she clenched her little fists and indignantly cheered him on.

Green just smiled and didn't say anything, because he had more important things to deal with at the time.

Moreover, he felt it was a good thing that the New York Times exposed the matter; if he hadn't lacked connections, he would have published the article directly in the New York Times.

As for whether the Mexican government will see Green's article and change its policy?

Green wasn't worried at all, regardless of the Mexican government's ability to implement policies.

Given their enormous debt problem, even if the Mexican government contacted the IMF immediately, they would still have to go through procedures. And do they really think they can easily borrow money from the International Monetary Fund?

That price is unbearable for the Mexican people.

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