Chapter 176

Chapter 176: The Wall Street Struggle

Of course.

Abel is in Los Angeles.

Not all day, I'm just thinking about singing with Annie.

Or play on the red sofa with Charlize.

It's there except for Dark Horse Comics and AMC. In addition to opening a new real estate company.

There are also serious things.

Like the 11th and 25th.

He negotiated another deal.

He bought a bank. The name of the bank is huge, called Pacific Bank of Commerce.

But in reality, the bank only has assets of 165 million USD.

In total, there are 4 branches, holding assets worth more than 1 billion USD.

According to the US FDIC, that is, the classification of the US Federal Deposit Insurance Corporation.

Pacific Bank of Commerce is a small bank. The FDIC divides banks into three categories: large, medium, and small based on the size of their assets:

Large banks are those with assets exceeding $250 billion.

A mid-sized bank has assets ranging from $10 billion to $250 billion.

Small banks are defined as those with assets under $10 billion.

By this standard, there are actually only three major banks in the United States.

The three banks are Wells Fargo, Citigroup and Bank of America. Other famous investment banks like Goldman Sachs are just mid-sized banks by this standard.

The banking industry in the US is very developed. At its peak, there were more than 50,000 banks in the United States.

If we include these small credit facilities in rural areas.

At its peak, it was estimated there were more than 100,000 people. Even today, in 2000, according to FDIC data, there were 9,613 banks in the United States.

Of the 9,613, there are clearly many smaller regional banks such as Pacific Bank of Commerce.

It's a small bank with only a few branches, limited to a few locations within a certain region of the United States.

These small banks have limited capital, high capital costs, concentrated customer base, and low risk tolerance.

A study published by the Society of State Bank Supervisors (CSBS) found:

In the United States, each year more than 2% of small banks fail or are on the verge of bankruptcy.

"Happy cooperation~"

After shaking hands with Richard, president of the Pacific Bank of Commerce, who was coming from Northern California on a special trip. » Abel said smiling.

The latter revealed a bitter smile, so he also smiled and said: "Happy cooperation, thank you for your help."

Pacific Bank of Commerce is headquartered in Northern California, San Francisco Bay Area.

Its headquarters are located in Palo Alto, one of the centers of Silicon Valley.

Abel went there many times.

But this small bank operated inefficiently and lost money for many years. Parallel in time and space, it will also be available in three years.

This time, Abel acted early and directly bought the bank.

On the contrary, Richard, the president and his family can breathe a sigh of relief.

After seeing Richard leave, Abel immediately said to Alan Baker next to him:

"Let's start negotiations. Our goal is to increase the number of branches to more than 50 as soon as possible. According to the plan, the next banks are Desert Bank, Lianhua Bank and major banks.

"Understood! BOSS! We will execute him immediately!" Alan Baker spoke quickly with a respectful expression.

During the next period, Abel's team of special advisors represented him throughout Los Angeles and the West Coast of the United States.

Began a buying spree of small banks.

In just half a month, it has successively conquered more than a dozen small banks, including large banks Lianhua Bank and Desert Bank.

Among them, the main bank (official name) has only one headquarters, with assets of 108 million USD. Lianhua Bank has four branches, with total assets of 235 million US dollars.

The bank's primary business is in the Chinese community in Los Angeles, which could be seen as a disguised increase in Abel Bank's share of the Chinese community.

Desert Bank has nine branches and assets worth $532 million.

Desert Bank is also the bank with the highest value and most assets in Abel's series of mergers and acquisitions.

Wait until December 5th. The New York Observer, a biweekly magazine based in New York, published such news.

This report focuses on the business activities of his boss, Abel Smith, over ten days.

The title of the report is—

"15 banks in 10 days, will a new banking giant appear? »

[As we know, Mr. Abel Smith, chairman of this newspaper, is the richest person on the Forbes rich list! ]

[But now Forbes must update Mr. Abel Smith's rankings in other lists! ]

[According to the author's calculations, Mr. Abel Smith has now become the 16th banking giant of the United States. ]

Because he consecutively acquired 15 commercial banks in just ten days! ]

[It is now named after the beloved chairman of this newspaper. There was a bank called Pacific Bank of Commerce. ]

[This bank is located on the west coast. It currently has a total of 51 branches, with total assets of more than $4 billion and custody assets of $27 billion. It may be ranked 16th on the list of banks in the United States! ]

[It is reported that he owns Smith Capital, a fund with an annual return of over 289.3%. ]

[The final two phases of the private equity fund will be guaranteed by Pacific Commercial Bank]

[This newspaper has reason to believe that it is under the leadership of Abel Smith. The fledgling Pacific Bank of Commerce would become another new giant in the United States! ]

At the same time, this newspaper is extremely skeptical of Forbes' claim that Mr. Abel Smith is among the richest people in America. ]

[Given the financial resources demonstrated by this newspaper's beloved chairman, Forbes clearly did not do enough to gather information.]

[This makes us doubt Forbes, is the reputation of its other rankings the same? ]

[Author of this diary.]

The report spoke positively of Abel's wild acquisition of small, shuttered banks on the West Coast.

At the same time secret.

There is also a bit of "Forbes", a bi-weekly magazine like the "New York Observer". This report creates a thousand waves with one stone.

This even has a major impact on the banking and finance sector across the United States.

Fortunately, the Wall Street Journal quickly interviewed several banking giants and executives in New York and the United States.

For example, Mr. Richard Fuld, president of Lehman Brothers bank.

In an interview, he told the media this:

"Mr. Abel Smith is truly an outstanding investment genius. But that doesn't mean he's also good at running a bank. »

"Bank management and development is different from pure investment."

"Personally, I have a conservative view, waiting to see Mr. Abel Smith join the banking industry!"

Except Richard Fuld.

"The Wall Street Journal" also immediately interviewed Mr. Paulson, president of Goldman Sachs.

Paulson's words were much calmer, he smiled at the camera:

"Goldman Sachs is willing to cooperate with Pacific Bank of Commerce. Just like Goldman Sachs is willing to continue to cooperate with Mr. Abel Smith. »

"We are ready to work with other banking colleagues to build a better American banking order. So that people can feel more secure when depositing money at banks."

"Let everyone's financial management and investment achieve steady and stable profits!"

If there are good things. At that time, I went to investigate Paulson's comments and tone in the media from last year to this year.

They will be surprised.

This bald bank manager, what he says to the media is becoming more and more stable and official.

Wait another year.

Everyone will know why there was such a change when Paulson was interviewed at that time. Because next year, he will be your Minister of Finance!

Apparently he had previously been in contact with the person who was about to live in the White House.

On the other hand, in an interview with the Wall Street Journal today.

I won't say such official words.

In each set of maintenance reports.

About this. The presidents of major Wall Street investment banks were especially concerned about the rise and rise to power of the Pacific Bank of Commerce.

Apply a "cautious attitude".

As for big banks like Wells Fargo, Citigroup, etc.

Basically, they don't express their opinions.

It's just that when in private, Abel's cell phone rings much more often. Like December 6th.

Beverly Hills, address 1414 Seabright Pl.

The edge of the outdoor rooftop swimming pool overlooks Los Angeles at night.

Abel is lying on Jessica Alba's soft lap.

In heated swimming pool water.

He's on the phone with Philip Purcell, CEO of Morgan Stanley. "~Ha, Philip, I really mean it."

"I have discussed this VAM agreement with the Texas group and Warren."

"Yes, like you, they did not agree to my proposal."

"Like you, they all think my offer is too high. Even if I don't say it out loud, I think they will definitely say I'm arrogant."

"But I'll tell you, Philip. Like I told them."

"In my heart, I think this proposal is really not high!"

"Ha~ I'm not joking, I'm serious."

"Philip, think about it, I'm still in Los Angeles, let's say this first!"

Abel, hang up first.

After hanging up the phone, his expression didn't look good. This makes Jessica Alba a little worried.

The tall, mixed-race beauty stretched out her kittens and gently rubbed her forehead.

"Hey Jessica, it's only been two days. You did great!"

Abel, in a bad mood, appreciates the beauty's charms.

He smiled and said to Jessica Alba. Jessica Alba smiled brightly.

She just completed special training and will start filming the latest version of "007" next year.

Jessica Alba Next, take a break.

She can stop working for at least half a month.

She will return from Seattle soon. Compared to being too smart, Anne is a little less smart in choosing.

Jessica is the same age as Annie.

But from start to finish, she knew what she was looking for.

From beginning to end, everyone knows who is the best person who can bring everything back to them.

Compared to Anne, Abel must use certain tricks to let Jinna manage and guide. Let Abel worry.

Jessica Alba really makes Abel feel comfortable.

In front of Abel's eyes, Jessica Alba was very obedient.

And as his status and wealth increased, he became more and more obedient.

When she was in New York before, Jessica still had some intention of pursuing free love. Now after becoming the female lead of "007".

Jessica became obedient to Abel.

Including the scandals that Abel revealed in the media.

Jessica Alba has a don't even ask attitude.

It seems to say that as long as you continue to feed me, feed me well. So I don't care how many fish are in your pond!

is a smart and sensitive girl.

And this time she returned to this villa.

In a spa.

Abel sometimes compliments the spa owner's performance.

She directly proposed on the spot that she wanted to learn massage techniques from the other person. Then I actually learned, and for a small fee the masseuse taught him some massage techniques.

She then applied this relaxing massage technique to Abel.

It may not be as good as a professional SPA, but it's more beautiful.

You can also wear a bikini, let Abel who is being massaged enjoy it by reaching out his hand.

On the other hand, of course, Jessica's service of seeing, touching, smelling and hearing makes him more satisfied!

"As long as you like it." Jessica Alba smiled sweetly, slightly bending her waist to make it easier for her to play. Abel held the phone in one hand and

He soaked most of his body in the hot lake water, as hot as December.

Accept flattery from Jessica Alba.

He closed his eyes for a moment, thinking about his next plan.

This aggressive plan to enter the banking sector has gone well in mergers and acquisitions.

There are more than nine thousand banks in the United States. It's not difficult to buy dozens of companies.

Of the more than 9,000 U.S. banks, it is estimated that at least 9,000 are small commercial banks in the Pacific.

The total assets of these banks are only 100-200 million USD.

Even though this is a premium buy, it's not that expensive.

Additionally, most small banks are finding it difficult to operate in the current environment. In many cases, you can earn them directly without paying a fee.

Like this time, less than half a month.

Abel bought 15 such small banks on the West Coast.

The total cost is about 4.5 billion USD and the total insurance premium is less than 500 million USD.

It has now integrated these banks, along with their branches and operations, into Pacific Bank of Commerce. This makes the current Pacific Commercial Joint Stock Bank become a "large" small bank with total assets of 4 billion USD and mobilized capital of 27 billion USD.

That's true if it complies with FDIC standards.

Own assets do not exceed 10 billion USD, it is a small bank.

The reason Abel did this was because he was in a hurry to join the banking industry.

Because half a month ago, after receiving investment from Smith Capital at the end of the year. He has a showdown with investment banks and Wall Street.

After that, he also stabbed many Wall Street companies in the back.

It's already been an argument.

Even if the hatred is not very big, he still has to be careful.

Furthermore, he thought it was time. Wall Street is no longer allowed to control its capital flows at will.

So now, he only has two options.

The first is to own a bank, preferably a medium or large bank.

It's relatively difficult.

Because if medium and large banks do not choose the right time, the price they will be forced to buy back will be too high. Another solution is to invest heavily in these medium and large banks.

Once they become shareholders, they will be able to receive certain security and protection regarding capital flows.

But that's not certain, because Wall Street is also easily complicit.

There are beneficial situations.

Eliminate major and minor shareholders, as long as they are not a relative majority shareholder. This is not uncommon for a bank or Wall Street.

Abel decided to take a two-pronged approach and proceed directly in two steps.

First by acquiring a small bank and then expanding its scale through acquisitions and mergers.

Although not as quick and direct as the acquisition of medium and large banks, it still poses a potential risk of failure in business and development.

But it's more economical and you can also control your transfer station yourself. Second is to continue investing in these large banks.

Follow both steps so you can ensure greater security for your capital flow.

Right now he can only take one step.

Acquires Pacific Bank of Commerce and expands this small bank on the West Coast.

is the first step. It's just that if he did, it would certainly cause discontent on Wall Street.

Because obviously after creating his own bank.

Lots of money from Smith Capital.

It will be entrusted definitively to the Pacific Bank of Commerce.

Although this does not prevent it from continuing to cooperate with other investment banks. But its approach will clearly reduce the profits other banks will earn.

Of course they were not satisfied.

That's why these days.

The reason why cell phones other than his #1 almost exploded.

These Wall Street giants have two main goals in mind. The first is to continue to cooperate with Smith Capital.

An investment company like Smith Capital, short-term and fast, with such a large trading volume.

is always their favorite.

Another goal is to learn about the possibility of investing in Smith Capital or Pacific Commercial Bank.

Like before, this call is from Philip Purcell of Morgan Stanley. That's what I asked.

But when it comes to price, these guys have set the price too high.

Worth 500 billion USD, only one capital building.

Smith Capital's valuation makes them unaffordable.

Even if the VAM deal is very attractive, men who are concerned about their benefits are still not satisfied. Faced with a lack of activity from these guys, even confusing warnings.

Abel appeared indifferent.

He's no longer the freshman who walked onto Wall Street last year.

At that time, he was a neat, clean person on Wall Street.

He only has talent and a family cow. At that time he had to be careful, polite to everyone and behave like a sociopath.

At the same time, in terms of cooperation and concern, they are very generous and impartial.

It was him last year.

From now on, he has his place on Wall Street.

Smith Capital investment receipt. 289.3%, perhaps the annual return is even higher.

It also passed through the wealthy in New York and spread throughout the United States.

Smith Capital's Phase II and Phase III funds have not been officially established.

In just a few days, more than two or three hundred people came to inquire.

The amount shown for registration was far exceeded. But above all, it could have been guaranteed on a material level.

It won't be directly destroyed at will, this is what he cares about the most.

With the Texans taking over next year, his defense in this regard will be stronger.

In this case, Abel is no longer willing to pay large protection fees to Wall Street.

It's time to show your teeth to Wall Street. Let them know, you Dixie guys from Texas.

I had intended to sit on the same level as them.

(end of this chapter)