Chapter 181
Chapter 181: Abel changes his investment style
Wall Street In December, something big happened.
J.P. Formal merger of Morgan and Co. and Chase-Manhattan.
This incident shows that the two largest financial forces on Wall Street have merged into one.
Chase Manhattan Bank, commonly known as Chase Bank. It is also known as Chase Manhattan Bank. If you only hear the name, foreigners may not know the position of this bank.
Let's put it this way, it was the financial center of the Rockefeller group.
As for the other company that merged with Chase Bank, J.P. Morgan and Company.
As its name suggests, it is the core part of the Morgan Group.
The two companies issued a joint press release on September 13, announcing their intention to merge. After this news was released, many people thought this was just a joke.
Morgan merged with Rockefeller?
Are you kidding me?
Because this incident seemed absurd, it caused heated discussions in America for a day or two at that time.
After that there was no more news. Not everyone believes that.
So, in December, the two companies officially announced their merger.
Then it's the year 2000.
JP Morgan Chase Bank with total assets of 660 billion USD officially appeared on Wall Street.
According to David Mellon on this topic...
"The Federal Reserve and the FDIC are crazy! They created a T-Rex and a shark!"
The entire Wall Street was in chaos and many people were not expecting it. These two giants have truly joined forces.
The birth of JP Morgan Chase threw Wall Street into chaos for a while.
On the contrary, Abel was calmer.
In his few memories of America, there is a part of the merger of these two banks.
He knew that only fifteen years had passed since their merger. It has grown into a company with total assets of $2.5 trillion and total deposits of $1.5 trillion, accounting for 25% of all deposits in the United States. It has more than 6,000 branches and is one of the largest financial services organizations in the United States.
But before that, the origins of their holders are quite astonishing.
These two banks are not doing very well on Wall Street, both in terms of operations and performance.
For all of last year, Chase's annual revenue was just $22.2 billion. J.P.'s annual revenue Morgan even only reached 8.8 billion US dollars.
The total revenue of the two giants does not exceed 30 billion USD.
The profit is not even five billion US dollars.
These revenues cannot even be compared with the earnings of the big four investment banks.
Of course, this is tied to their core business, commercial banking. Commercial banks are always inferior to investment banks in terms of revenue.
In the United States, the banking system is dominated by commercial banks.
A large system includes the Federal Reserve, savings banks, investment banks, and specialty banks.
Including 9,613 large and small banks.
There are more than 6,000 commercial banks. Next are savings banks, about 2,000.
Then there are the investment banks, about a thousand.
The remaining hundreds of families are investment banks, savings banks and professional banks.
Threshold institutions typically refer to the twelve Federal Reserve Banks.
Professional banks include centralized banks such as the World Bank. For the Federal Reserve, there is only one.
In fact, it is the headquarters of 12 Federal Reserve Banks.
In other words, the Federal Reserve, the world's central bank, is made up of these 12 banks.
This is different from other US banks.
The reserve banks of the 12 Federal Reserve districts have non-tradable stocks. And there is a regulation that their shares can only circulate among shareholders.
I didn't get their shares when they were created and I basically can't get their shares anymore.
As for the Fed, it hides too many secrets.
Its secrets are not even known to many senior executives in this country.
Coalition representative. Wright Patman of the last century.
This man was the head of the House Banking and Currency Committee for 40 years.
During these 20 years, he continued to propose abolishing the Federal Reserve.
The congressman also tried to find out who owns the Fed.
Finally, he announced to the public that he could not even find out who was in charge of the Federal Reserve. As for whether this really hasn't been discovered yet, I don't dare say.
Only the MP himself knows.
In short, the birth of JP Morgan Chase heralded the birth of a giant American commercial superbank.
No wonder Wall Street was in an uproar over his appearance.
When it dominated all financial news. Abel's Pacific Bank of Commerce.
December 20, successfully acquired seven small commercial banks.
It seems calm.
For about a month, Abel waved a stick filled with dollar bills.
After spending about $13 billion in cash. Pacific Bank of Commerce currently has 112 branches.
This is a medium-sized bank with total assets of 12 billion USD and deposit assets of approximately 100 billion USD.
At the same time, it also consumes more than half of Abel's cash flow.
But Abel and David Mellon think it's worth it.
Now, Smith Capital finally has its own capital circulation center and payments bank. Pacific Commercial Joint Stock Bank also officially became the payment and financial core bank of Abel Group.
Many companies belong to Abel Holdings.
For example, MGM, CAA, amc TV channel, Isha company, YKM company, New Beginning Point Real Estate, Rock Security have all transferred most of their business to Pacific Commercial Bank.
Companies such as Google and ideo related Abel Investment Holdings have also moved part of their payments operations to Pacific Bank of Commerce.
It was these companies that allowed Pacific Bank of Commerce to suddenly add billions of dollars to its revenue. This will benefit both sides.
For Pacific Bank of Commerce, that means a lot of additional business.
You can earn more fees and interest.
For these Abel companies have a sister bank of their own.
It can also be more secure when paying money. At the same time, in case you need to borrow money in the future.
If you have your own sister bank, you can also benefit from certain discounts on interest rates and loan periods.
This is why the financial core of American corporations will always be banks.
Who said that in the modern commercial system, commercial banks are already an indispensable and essential component?
As for Abel's current main company, it is Smith Capital. When investing in the markets, it is eventually no longer necessary to fully track cash flows.
Has its own payment bank and financial revenue center.
It's not easy for Wall Street giants to keep following Smith Capital.
Today is also December 20.
Smith Capital's second and third private equity fundraising rounds have been completed, raising $10 billion. Let Pacific Bank of Commerce earn more than $30 million in underwriting fees at once.
Initially, this money was created by these Wall Street giants.
For example, all four major investment banks participated in Smith Capital's initial private placement.
Only four of them earned more than four million dollars in profit.
This money now let Abel put his left hand on his right hand. Flowing back and forth, finally flowing into one's own pocket.
The two private placements raised a total of 10 billion USD, but the number of subscriptions reached 18.2 billion USD.
The registration period is thirty-six hours.
Also that evening.
Contrary to the expectations of many Wall Street giants. Smith Capital's investment management this time.
It is no longer a high-risk international foreign exchange or futures market but a high-return market.
This time, Smith Capital, this huge cash flow, began to aggressively enter the US stock market.
What makes Wall Street tycoons even more heartbroken is that this time Abel, who always liked to play with leverage.
No leverage!
Or they don't know if they'll use it or not. Because if Pacific Bank of Commerce provides leverage.
They have no way of knowing the exact cash flow!
It is much easier to observe the capital flows of an investment company than to observe a commercial bank with hundreds of billions of dollars in deposits!
Because they do not act as intermediaries
With the addition of Smith Capital, it has its own capital circulation center.
This is Pacific Commercial Bank.
This makes this investment by Smith Capital relatively secret to Wall Street giants.
Many people have no way to immediately know Smith Capital's investment direction like before. Everyone spends a lot of time, uses a lot of connections and channels, and wastes a lot of incentives and money.
Only then did I learn about Smith Capital's general investment direction this time.
That means if you want to check, you can roughly check.
It's not as easy to know as before and it's very detailed.
Now that everyone has figured it out, those are just a few general directions. But exactly how much money, how much and when.
It's hard to know.
And seeing this, they rechecked the results.
Everyone finds out Abe Smith has had a sex change!
It's okay if he doesn't play currencies or futures and he doesn't even play leverage.
It's okay if you don't play it. This time he was very honest and truthful when distributing tens of billions of dollars to more than 100 companies on the US stock market.
The average investment per stock is about 120 million USD.
This style of investment has changed the impression it gave people before.
Everyone discovered that this guy had gone from being a player's investment to a fisherman's investment.
What is fishermen's investment? Like a fisherman at sea, casting large nets.
The fisherman does not care why he has to work or what he can catch.
This completely different investment style suddenly made the Wall Street tycoons watching him very uncomfortable.
We have been studying his investment style for almost a year.
Several companies have emulated his investment model. Although you cannot actually follow this model, you can achieve the same great benefits from it.
But just follow this template and follow Abel's investing actions.
Many times Abel ate meat in front of him.
These middlemen can also follow him by mixing a mouthful of soup or meat.
Just like Merrill Lynch used to be, thanks to Charlie Schaff's determination. In many of Abel's investment deals, they quietly followed him and learned many times.
Even though they don't make as much money as Alberto, they still make a lot of profit.
That's why everyone loves to watch it.
And Wall Street firms like Merrill Lynch aren't the only ones.
The main reason is that everyone wants to follow him, see if he eats meat, see if he can drink soup or not. If you have the opportunity, you can also bite it hard when it is inattentive or distracted while eating meat.
The latter is because Abel moves quickly.
So far, no one has bitten Abel.
But the soup is also delicious and you can feel full if you drink too much.
But now Abel has changed his investment style. This stunned a large number of Wall Street tycoons who wanted to eat soup.
Headquarters of PNC Financial Services Group.
A somewhat dejected group CEO Sulli Winston told Lincoln, CEO of BlackRock Investment of PNC Financial Services Group:
"How did he change his gender? The company's analysts did not say that David Mellon should have made all the previous deals."
"After he returns, he will definitely come back to take revenge. Or will he cut the ticket to the market himself?"
"So why doesn't he trade foreign exchange or futures anymore? You should know that before that, it had never entered the US stock market.
PNC Financial Services Corporation is a financial company headquartered in Pittsburgh, Pennsylvania.
Whatever its investment reputation, it is currently far behind the big four investment banks.
But its investment activities are actually not inferior to those of the four major investment banks.
PNC's asset management business was born from the merger of two trust companies in the 1990s.
In the mid-1990s, BlackRock Investments became part of PNC's asset management business. In 1999, PNC acquired First Data Investor Services Group.
This company is a major provider of public funds and other investment vehicles.
This acquisition strengthens PNC's position as a leading global investment services provider.
In 2000, BlackRock Investments became one of the largest listed investment management companies in the United States.
The following, courtesy of PNC Financial Services Group. BlackRock has even become the largest depository institution in the world.
At their peak, BlackRock funds managed over $11.5 trillion!
Of course, it's the year 2000.
The BlackRock fund is not so far-fetched.
Even with the support of PNC Financial Services Group.
Currently, its depository funds amount to about 1.2 trillion US dollars. Currently ranked in the top 5 in the United States.
There's still a long way to go before becoming number one in the world.
And this is why it could become the world's leading deposit fund in the future.
This is of course related to its very good annual profits.
It is because it can bring money that rich people are willing to believe in it. ready to invest money there to invest in financial management.
Ultimately, this is an exaggerated scale of up to ten trillion US dollars.
Since May this year.
In fact, BlackRock Fund secretly drank soup with Abel many times.
Abel earned more than 10 billion in six months and BlackRock earned more than 3 billion in six months. The reason there are fewer is not because the BlackRock Fund doesn't have the capital.
In contrast, the BlackRock fund is backed by PNC Financial Services Group, which is at worst the main fund.
The reason is that revenue will be much lower than Smith Capital.
This was related to the fact that the BlackRock Foundation did not trust Abel at the time.
And after all, he was also the one pursuing these investments, and at the same time he was also afraid of Abel's opposition in front of him. Furthermore, in terms of entry and exit times, rickshaws naturally cannot react as quickly as pioneers.
The BlackRock fund's investments have seen some profit pullbacks.
This makes BlackRock Fund unable to compare with Abel in terms of revenue.
This initially occurred after receiving Smith's investment.
Because I've seen Smith Capital's incredible returns. Many Wall Street firms, including BlackRock funds.
They all thought that they could also drink soup with Abel later.
Simply put, it is a direct imitation of Abel's investment rhythm.
It's like the hot money following the Soros Quantum Fund.
Soros or Abel rush in, their hot money following for a living. But this time, after receiving Abel's investment, Smith Capital actually only made a few transactions per month.
But that amount was tiny and was embezzled by some Wall Street giants.
Successfully shot down!
This makes people realize that these investments may not be Abel's.
This is Smith Capital's behavior.
Everyone will be able to see it later. And now the Wall Street giants have been closed in Abel for a month.
It was finally time to move.
Everyone else acts the same.
People who want to drink soup with him are preparing, people who want to find an opportunity to shoot him are also preparing.
result
Abel actually stopped playing FX or hedging futures. He ran to the US stock market!
Faced with discouraging comments from the CEO of corporate headquarters.
BlackRock Lincoln Foundation CEO wondered how I knew.
Lincoln replied:
"Maybe he has changed? Maybe he knows our actions and behavior? He doesn't dare to take risks so he chose the relatively safe stock market?"
Sally Winston also could not make an accurate judgment. The main reason was the sudden change in Abel's investment style that surprised everyone.
It's like a guy who drinks wine and eats meat every day, suddenly one day he says he wants to become a vegetarian and become a monk.
After seeing it, of course people will be very upset with his transformation.
After thinking, Sally Winston gently said:
"Considering the current situation, we temporarily choose to observe."
Lincoln agreed.
"I think so too. Because I think the behavior of these cheapskates made him realize he was our target! »
Sally Winston agrees:
"Sure. Otherwise, he wouldn't have spent so much money in such a short time to establish his own merchant bank."
As for the sudden change in Abel's investment behavior.
The two giants of PNC Financial Services Group can only guess why he suddenly became cautious.
Because he noticed some people on Wall Street were attacking him.
This caused Sally Winston and Lincoln to complain at the same time. Complaining about those who made millions of dollars from snipers last month, greatly upset everyone.
Now let Abel be on his guard.
In the future, let people choose to do the same thing or shoot it.
The difficulty will increase many times.
But Wall Street is the source of that urine. Want to bring people together.
Even if the original Morgan and Rockefeller were resurrected, they still wouldn't be able to do this kind of thing.
Just like the capitalists behind many other interest groups in America, they cannot unite.
Wall Street is full of hills and there are hills in America too.
Sally Winston and Lincoln clearly couldn't get everyone to comply. Finally, a few mouse droppings ruined everyone's delicious soup.
PNC Financial Services Group, the mouse god in the eyes of two giants.
Merrill Lynch's investment department doesn't think so right now.
Merrill Lynch's investment arm is the company that blocked some of David Mellon's foreign currency investment efforts last month.
Merrill Lynch made millions of dollars from these investments. It was Mr. Stanley O'Neill, president of Merrill Lynch, who directed these sniping operations.
Charlie Schaaf, chief financial officer of Merrill Lynch, objected.
But today's Merrill Lynch, and even CEO David Komansky, are about to be eviscerated by O'Neill.
Charlie's objections didn't help at all.
And then O'Neill proudly said to Charlie:
"Look, the Invincible Wolf of Wall Street isn't great! Isn't this another loss for Merrill Lynch?"
This incident further enhanced Stanley O'Neill's already high reputation at Merrill Lynch. Fortunately, Merrill Lynch later discovered this.
These Smith Capital transactions should not have been led by Abel Smith.
This was done by David Mellon, managing director of Smith Capital.
This caused O'Neill's voice within the company to become quieter.
It also allowed Merrill Lynch CEO David Komansky to avoid the unpleasant possibility of being replaced prematurely. Now I also want to drink soup or try to see if I can continue to attack Merrill Lynch.
Currently, I am watching Smith Capital invest more than 10 billion US dollars in the stock market of more than 100 US securities companies.
In the office, Stanley O'Neal was a little stunned.
"Investing in US stocks instead of international currencies? »
The most powerful black president on Wall Street muttered to himself.
Beside Charlie Schaff remained silent. "Charlie." O'Neill wouldn't let him go. "What do you think Smith meant by that?"
Charlie wondered how I knew.
But as the company's chief financial officer, he must answer questions about this issue.
Charlie Scharf had no choice but to try:
"Maybe it was our sniping last month and early this month. Make the other party aware of the risks? Smith worried about risk and decided to invest in safer US stocks?"
It's a bit like Black Stanley O'Neill. After all, late last month and early this month, Merrill Lynch's sniping behavior.
It's O'Neill's choice, or he takes the lead.
It almost pointed at O'Neill and said: you're the one who's deceiving yourself!
But this explanation is perhaps the most realistic.
What makes O'Neill even more helpless is that Smith Capital has invested in hundreds of listed companies in the United States.
They are spread across four stock exchanges and three major stock indexes in the United States. There are more than ten major portfolios and more than 30 smaller portfolios, as well as Smith Capital portfolio companies.
Abel's investment strategy, his choices, and the direction of the wind this time all remain without a trace.
Let everyone on Wall Street be completely invisible!
(end of this chapter)