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 didn't even ask Tong Wencong the reason for his visit.
Anyone who wants something will speak first, and Tong Wencong is naturally the same.
"Ahem! Mr. Qi, 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 consultations and is preparing to inject 10 billion US dollars to rescue them."
"You are seeking death, no one can blame you." Xiao Qi smiled faintly, "The Japanese government should not consider them, but Sumitomo Mitsui Banking Corporation!"
Sumitomo Mitsui Banking Corporation is the second largest bank in Japan. Its scale is huge 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 - the Mitsui Consortium and Sumitomo Consortium are originally the core of the six major consortiums.
.
In addition to being deceived by Xiao Qi, Sumitomo Mitsui Banking Corporation was also deceived by several Japanese funds. With a large amount of subordinated debt in their hands, they should have no time 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.
Money, I have a lot of this stuff in Japan!
"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 think we can attack again to let the storm go."
Come harder!"
"Do 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 his surprise appropriately, but his heart was rolling like waves.
It’s finally here!
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 and 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.
The kind of commercial insurance purchased by investment banks is CDS.
Okay, I can put it more bluntly.
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 was called Goldman Sachs.
This bank that accepts CDS insurance is not "a commercial bank in Germany", it is Germany's second-ranked Deutsche Bank. It is also the unlucky bank that Xiao Qi has cheated once and bought a subprime debt portfolio.
Then this series of events triggered what is known as the "Greek debt default crisis" that everyone is familiar with.
In other words, the Greek debt default crisis is 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 earned only a small amount of insurance premiums and ended up losing hundreds of billions of euros in total. The entire Eurozone was therefore
He was so devastated that when Xiao Qi traveled back through time, he did not regain his strength.
CDS is so famous and infamous, how could it be possible that Xiao Qi has never heard of it?
But the young man must not say that he knows and knows more than Tong Wencong. He can only pretend to be stupid.
Tong Wencong also has no doubt that there are too many derivatives in the financial field. Except for the elites who created 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 others.
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.
Incredible, the least is 30% off, the most is only 40% off! We several fund managers discussed it and thought this business is very good. We want to take it all in one bite. Do you want to join?"
This is seeking death!
Xiao Qi swallowed his saliva.
Something like CDS is like a gunpowder magazine for whoever holds it, and you can't even hide, but you still run into it?
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 subprime debt outbreak, everyone thought that high-yield subordinated debt was a high-quality financial product, and many countries and major banks were buying it.
If someone really traces Xiao Qi's involvement in the future, Xiao Qi can 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!
Xiao Qi's Fairy Company has such a good reputation. If it really takes such a big blame, how can a company with such a bad reputation 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 in the future.
Is it the company's product? It's very polite not to just buy a villain and stab the villain!