sbdcsierra Chapter 550 One Day Before Lehman Went Bankrupt
Chapter 550 One Day Before Lehman Went Bankrupt
"Mr. Lane, thank you for your cooperation.
"Now please withdraw, we will have to discuss internally and issue a conclusion report."
On September 13, 2008, at 0:13 in the morning, the accounting team asked the last question.
Ryan Smith walked out of the room in a cold sweat, his head empty.
The questions asked by the members of the accounting team were really tough and merciless.
Just like the outer clothes of Lehman Corporation, all the clothes have been taken off, and the inner and outer parts are clearly visible.
This made Ryan Smith panic.
His answer was not perfect, it could even be said to be terrible.
Under the attack of everyone in the accounting team, his answer was full of loopholes.
what to do?
How will the accounting panel judge Lehman Brothers?
Ryan Smith was frustrated at this moment.
Because as one of the five major investment banks on Wall Street with a history of 158 years, Lehman Brothers' fate is actually in the hands of others.
Tick tock~
Tick tock~
Tick tock~
The clock on the wall ticks every minute.
Every second is torture not only for Ryan Smith, but also for Richard Fuld.
"980" They don't know what the fate of Lehman Brothers will be?
Everything depends on the expressions of the well-dressed Wall Street colleagues in the conference room.
finally!
1:30 am.
The accounting team opened the door to the conference room.
Representatives of Goldman Sachs walked into the high-end business conference room where Wall Street bosses gathered and read the report of the accounting team to everyone.
"We believe that the assets of more than 30 billion meters of gold are actually worth only 65% of the book amount, or even lower."
Before he finished speaking, the big guys were already talking about it.
obviously.
Lehman Brothers' current assets are just too bad.
The accounting team's report made them realize that not only could they not save Lehman Brothers, but if they did, their own empire might be the next to collapse.
Richard Fuld closed his eyes in despair.
Treasury Secretary Paulson glanced at Richard Fuld with a complicated expression and left the conference room without saying a word.
After leaving the Four Seasons Hotel, Ryan Smith was confused and filled with fear for the future.
He had just become the company's executive manager, and it was time to show off his talents, but now, the big guys on Wall Street were not interested in Lehman Brothers' bad assets.
No one would reach out to Lehman Brothers.
The only path waiting for Lehman Brothers is bankruptcy.
At this moment, Ryan Smith's cell phone rang.
It was big boss Richard Fuld calling.
"Ren, we are saved."
"Quick Back Company, Bank of America is willing to use part of the loan plus equity to acquire it.
Richard Fuld's words once again ignited the light of hope in the eyes of Ryan Smith, who was in despair.
There is help!
There are still big guys on Wall Street who have extended a helping hand to Lehman Brothers!
Immediately.
Ryan Smith rushed to the company quickly.
Back at the company, Ryan Smith led the working group to rush to Bank of America to discuss mergers and acquisitions.
It was still dark when we arrived at the Bank of America.
Rankauer, head of Bank of America's investment department, was waiting at the elevator entrance.
What Wren Smith didn't expect was that despite the quarrel, the negotiations went extremely smoothly.
One p.m.
After intense negotiations, the legal teams of both parties drafted the final acquisition agreement.
Ryan Smith felt relieved and breathed a long sigh of relief.
Lehman Brothers is really saved this time!
Although Lehman Brothers will change owners after today, it is still better than bankruptcy becoming history.
In the conference room.
Ryan Smith is waiting for the acquisition agreement to be drafted. As long as he signs it, the matter will be halfway done.
But this time.
Rankauer, head of Bank of America's investment arm, had his phone ringing.
Lancaul walked out of the conference room and returned to the conference room a few minutes later.
Ryan Smith's heart suddenly skipped a beat when he saw Lancaul's complicated expression.
Xi......
Things have changed?
"Mr. Lane, I'm sorry that Bank of America has decided to terminate its acquisition of Lehman Brothers with immediate effect.
Ranchoer's words exploded in Ryan Smith's mind like thunder and lightning, immediately leaving his mind blank, leaving only the words "termination of acquisition" by Ranchoer echoing continuously.
The lawyers of both parties who were drafting the acquisition agreement immediately stopped when they heard this, with a look of surprise on their faces.
Terminated?
What happened?
Why did Ranchoer answer the phone and immediately stop it when he came back?
Renn was stunned for a while before he came back to his senses. He stared at Lancaul.
Bank of America decided to terminate the acquisition at this time, which is so baffling.
In the morning, didn't we both have a very friendly exchange of words?
Haven't we all reached an agreement?
We at Lehman Brothers have made so many concessions. Isn’t Bank of America still satisfied?
Ren was very angry.
"Why?"
"Lan Kaur, why did you terminate this acquisition?"
"Didn't we already have an agreement?"
"Give me a reason!"
"I need a reason!"
Lancaul gave a wry smile and said: "You know, Goldman Sachs and Morgan don't want us to merge. There is too much pressure. Moreover, Merrill Lynch has made an offer to the board of directors that it cannot refuse. We can only choose Merrill Lynch."
boom!
After listening to Ranchoer's words, Ren lost all his strength and slumped in the conference room, unwilling to move a finger.
He was extremely angry!
Damn Goldman Sachs!
Damn Morgan!
It's okay if you don't want to help. Now, you are still blocking Bank of America from acquiring Lehman Brothers. What are you thinking about?
Wren knew what Goldman Sachs and Morgan were doing.
Only when Lehman Brothers goes bankrupt can Goldman Sachs and Morgan get the biggest and most delicious piece of meat from Lehman Brothers' corpse at the smallest cost.
These damn vampires!
Goldman Sachs and Morgan are Wall Street, no, they are the two biggest vampires in the world!
this moment!
Lane has never hated Goldman Sachs and Morgan so much...
Oh~
And Merrill Lynch!
Damn it, Merrill Lynch actually took away the chance of Lehman Brothers’ survival at this time!
Wren didn't know how he got back to the office.
When CEO Richard Fuld saw Lane, he was shocked by his pale face and poured a cup of coffee for Lane himself.
"We have another option," Richard Fuld looked at Lane and said, "Accept the offer from Eagle Country Barclays Bank, which is almost 10 billion meters in gold to acquire our North American business."
"No, this is tantamount to selling our most cash-flow department.
Renn burst into tears instantly.
Richard Fuld was extremely calm at this time and said: "This cash will give the company a buffer time of half a year. Now we can only bet that the commercial real estate we hold will appreciate in value within half a year. As long as the value appreciates, there will be a solution."
18:00 sharp in the evening.
Richard Fuld picked up the phone, found a number and dialed it.
"I agree with your opinion on the acquisition." Richard Fuld said straight to the point.
On the other end of the phone, the other party was silent for a while and said in a low tone: "I personally and the board of directors are leaning towards this plan, but this afternoon we submitted a transaction application to the Eagle Country Banking Supervision Bureau. Unfortunately, the application was rejected five minutes ago."
"Why?"
Richard Fuld's voice became powerful and somewhat sharp.
"Aren't you already preparing to acquire it?"
"We are sorry."
"After the subprime crisis, bank regulators decided that investing in Lehman was too risky. I'm very sorry."
Listening to the beeping blind tone coming from the phone, the phone in Richard Fuld's hand fell to the ground.
It’s over!
All is lost!
The federal government will not help and will not provide financial guarantees for anyone to acquire Lehman Brothers.
Bank of America, before signing the agreement, chose Merrill Lynch and abandoned Lehman Brothers.
Now.
Even Barclays, the only lifeline in 2.4, has drifted away like duckweed, and Lehman Brothers can't even reach out to grab it.
So...who else can save Lehman Brothers?
September 14, 2008, 9:12 am.
The International Swaps and Derivatives Association (ISDA) announced that it will allow investors to offset credit derivatives related to Lehman to avoid being involved in the huge whirlpool caused by the collapse of Lehman in the future.
at the same time.
Lehman Brothers CEO office.
Richard Fuld picked up the phone and told his secretary: "It's time to notify the board of directors for a meeting."
Just a few minutes ago, he received a call from Federal Reserve Chief Ben Bernanke.
"Richard, don't blame me. The Fed's previous hidden rescue agreement for financial institutions has stimulated moral hazard. Therefore, we unanimously decided to choose a reckless institution with enough influence to shock the market to operate, and voluntarily gave up all potential commitments to it. Let it fail completely as a warning to all market participants not to have any illusions. In fact, Lehman was just chosen at the wrong time."
It was this phone call that completely crushed Richard Fuld. .