Chapter 194

Chapter 194 The new King of Wall Street is born

Today is also January 9.

Wall Street's most powerful black man is facing blame and accountability from the company's board of directors and CEO David Komansky.

Smith Building, in Abel's office on the fourth floor.

Abel stood in front of the floor-to-ceiling window, arms crossed, looking out at the tall buildings of Manhattan.

The buildings that symbolize finance are still as tall. Only Abel knows how many people will die in pain at this time.

Smith Capital, the amount of money involved in this transaction is too large.

So much so that Abel had to spend his last two nights in the company office worried about a counterattack from short sellers.

He appreciates the quiet here.

But he knew that across the East River, in New York, there were many people who tore his heart out. He also knew that if he waited a few more hours, hundreds of speculators would be cornered.

Capital will not extend an ounce of pity or sympathy to the losers.

And it was he who entered the capital indiscriminately, the butterfly effect making the bubble worse.

Time and space are parallel.

In January 2001, there was a real black swan appearing in the foreign exchange market. But not as harsh as this time.

He is the wolf of Wall Street who shorted from the start and slowed down over the medium term.

Making the situation so tense has caused many people to misjudge this time and space.

Bankrupt more people or end their lives.

There were earlier reports from New York media. Someone jumped off a building on Wall Street and jumped twice.

beep~beep~beep

There was a knock on the office door.

"Come in." » Abel said, looking across Manhattan.

Across the East River in New York, he seemed to see blood on the ground of Wall Street at that time.

The door opened. For a week, I only slept three or four hours a day.

It's all about drinking coffee, and I even want to rely on drugs to quench my thirst in between.

David Mellon is captured by Abel.

The young master of the Mellon family with his hair not washed for several days is in trouble.

But he walked in with a smile on his face. Abel turned and smiled at David Mellon.

The latter walked straight towards him without saying a word.

He jumped to the ground ostentatiously, then knelt down, raised his arms high, and cried out in pain:

"My God! My God! My God! My Supreme God!!"

He looks like a crazy person.

Abel shook his head and smiled. Abel knows that David is attracted to the market these days. Moreover, after these two days, the stimulation almost caused some mental disorder.

Abel walked over, slapped David on the shoulder twice and kicked him in the butt several times.

Then say, "Don't be like XJ! Come on out and see how my Cubs are doing."

"Hey hey hey~"

David Mellon stood up with a foolish smile and followed Abel.

Chairman and CEO of Smith Capital.

Soon arrived at the trading floor on the third floor. On the trading floor, they also fought hard for many days and nights.

Smith Capital's traders get little sleep.

After seeing Abel appear, for the first time.

I wonder if David Mellon taught it recently.

Turns out it's the same as David Mellon just now. One or two, shout the same words as XJT.

He knelt down on the ground and raised his hands towards Abel, his expression crazy and worshipful.

The actions of these pioneers quickly caused hundreds of Smith Capital employees behind to imitate them.

Ten seconds later, in the spacious trading room on the third floor.

More than a hundred traders of Smith Capital. They all raised their hands, screamed heartbroken like XJT and worshiped Abel.

To be honest, Abel doesn't like this crazy look.

But he knows why they are like that.

Mainly because of the state of the Smith Building's hideout this time.

His investment experience has had many ups and downs. Initially, Smith Capital chose to sell short.

At that time, the overall USD/JPY market was slowing down.

At that time, short selling went against the general trend of the market.

This type of behavior cost Smith Capital several days.

At its peak, unrealized losses almost exceeded $600 million. Then the bushes marched into the White House and two days later the Federal Reserve announced an emergency interest rate cut.

These two things have caused many Wall Street investment banks to make wrong judgments.

Not to mention the USD devaluation due to reduced interest rates.

The USD/JPY bull market, initially strong, begins to turn bearish.

In little more than a day, Abel's floating loss turned into a floating profit. According to the usual scenario.

Abel should wait to make some floating profit, close the position and leave after a few days.

But he didn't do that.

Instead, he entered the market in large numbers and wanted to sell USD/JPY.

I played a lot in slow motion. Smith Capital has benefited from the large number of short sellers entering the market.

In a very short time, more than 500,000 lots were successfully opened.

The tracking result is that he lost more than two billion US dollars in two days.

While the margin level on the account is very dangerous.

Abel had to sell a lot of shares on the US stock market to raise capital to increase profit margins and offset risks. The key moment comes in Tokyo time in Asia, at 7:30 p.m. January 6.

With the pioneering policy of quantitative easing proposed by Neon Central Bank.

And it happens that the next day is a weekend and the futures market is closed.

And for the next two days of the weekend.

A number of major countries in the world have continuously announced to cut interest rates in their currencies to protect themselves against the decline of USD interest rates. Lots of black swans, good for the dollar, on the horizon, plus super black swans of quantitative easing, bad for the yen.

Finally, the USD/JPY market got out of control and this is the current situation.

Ups and downs are important.

But what really matters most is the bet between Smith Capital and Wall Street.

Smith Capital made an outsized profit, a rarity in the history of Wall Street. First 500,000 lots, followed by 110,000 lots to secure the position. The total amount held by Smith Capital this time is 610,000 lots and the average open position is about 105,100.

According to the current market, this number is calculated as 119,650.

Smith Capital's profit is 1455 points.

A profit of $10 per point, or one standard lot, would yield a profit of $14,550. Total profit is approximately 610,000 x 145,508.875 billion US dollars.

And Smith Capital, in this investment.

Total investment, in addition to the initial three billion US dollars.

The next additional capital source is worth about 3 billion USD.

The original amount is 6 billion USD. To date, $8.875 billion has been won.

6 billion dollars, almost 8.9 billion dollars in less than ten days!

This feat naturally put the trader and David Mellon who witnessed it in this situation.

Abel also let his subordinates express the emotions accumulated during this time.

After they calmed down, he took the microphone from David Mellon.

"Be ready, my children."

He was talking about himself and was a bit disgusted by the second year's words. "The hunt isn't over yet. USD/JPY is way above this level. Watch out, we're about to bleed Wall Street!"

David Mellon raised his hands in cooperation and shouted: "River of blood, river of blood, river of blood!"

Smith Capital employees below also frantically raised their hands.

For a time, the "river of blood" flooded the entire Smith Building.

Those who don't know might think something wrong has happened inside. After boosting the morale of the merchants.

Another David, David Jones, arrives carrying Abel's work phone.

"Philippe Purcell." David Jones lip synced with his boss.

Abel nodded and took the phone David gave him.

"Hello Philip, good afternoon." Abel smiled on the phone. Abel could clearly hear Philip Purcell on the other side smiling bitterly.

"Mr. Smith. Maybe you're okay. But honestly, we're not that good."

"Why so? The weather today in New York is very nice. Look, the sun is rising outside!"

"I think it's appropriate to go out for a walk in this weather, what do you think?"

Abel asked and said that intentionally.

"Alright." Philip Purcell's voice calmed down:

"Mr. Smith, I'll be honest. This time you won, a very comprehensive victory."

"Morgan Stanley gives up."

"There are about 90,000 open positions remaining at Morgan Stanley. Mr. Smith, please make an offer. We want to close the position. »

This has already been said.

Whether long or short, when the quantity reaches a certain level.

If there is no opposing party, accept the termination of your position.

That is, if no one accepts the order, it will be considered liquidated and losses will continue.

If you are not bankrupt, you must repay the debt resulting from this loss. If you cannot pay, the intermediary and guarantor will accompany the partner to continue collecting the debt.

Talking about these investment banks and small and medium-sized investment companies is relatively easy.

I really couldn't stand losing money so I went bankrupt.

But of course, giants like Merrill Lynch and Morgan Stanley can't go bankrupt that easily.

You can't actually default on your debts. That is, if you don't want to keep losing money.

These investment banks have a large number of empty orders on hand and they must choose to close their positions immediately.

But in the market, the person holding the longest orders is once again Abel.

These large investment banks with many orders, the only person who can eat a large number of their short positions is Abel.

It is for this reason that Philip Purcell makes this appeal. Smith Building, Abel, who walked to the French door of the third floor, smiled and said on his cell phone:

"Are you that pessimistic? Purcell, the market isn't even open in the afternoon. Maybe in the afternoon the dollar/yen will fall again?"

"Perhaps," said Philip Purcell:

"But Morgan Stanley chose not to participate. And as far as we know, you're the biggest buyer. Make a bid, Mr. Smith."

"Alright. It seems like you're determined. Morgan Stanley truly deserves to be Morgan Stanley, which means decisive.

"Morgan Stanley owns 2% of Comcast and 3% of Google," Abel said, smiling. Please sell them to me at the current market price.

"Nothing." » Philip Purcell said immediately.

If these actions can cause Abel Smith to let Morgan Stanley go.

Not to mention their current market price. Even though it's a free gift, Philip Purcell will probably be very happy.

But Philip Purcell knew that Abel could not be so generous.

A piece of meat the size of Morgan Stanley was right next to Abel

You can't throw away a half-eaten piece of meat for other trivial benefits.

This is not Wall Street style.

If he did, Philip Purcell would despise Abel. Think of the kindness of woman Abel.

A woman's kindness can last a long time on Wall Street.

Indeed, Philip Purcell felt relieved at Abel's next state.

"In addition, I want to build my 5% stake in Morgan Stanley based on market price. What I want is initial voting stock."

Compared to the previous "small request". This request would make Morgan Stanley uncomfortable and embarrassed.

5% of the initial voting shares is not too small.

As a listed company, shares are always widely dispersed.

More than 15% of shares are held by very large shareholders and more than 20% are relatively large shareholders.

5% of shares have voting rights. Among Morgan Stanley shareholders, it might even rank in the top 10. These voting shares were able to hold more than two seats on the Morgan Stanley board of directors.

To Abel's request, Philip Purcell gave a simple and direct answer:

"Give me half an hour, Mr. Smith. In half an hour, I will answer your question directly."

"No problem. I'll wait for you, Philip."

"So goodbye and have a nice afternoon."

"I also wish you a pleasant afternoon ~"

The phone was hung up there by Philip Purcell.

The smile on Abel's face softened. He held his cell phone from the third floor looking down at Manhattan.

This time, he no longer fantasized about bloodshed on Wall Street.

I'm thinking of Morgan Stanley.

Abel believes that Morgan Stanley will most likely accept his request.

There are several reasons. One of them was Abel himself, who owned about 1.6% of Morgan Stanley's shares.

This is part of the shares that he acquired on the secondary market, that is, on the stock exchange.

Shares purchased on the secondary market do not have voting rights but have the same value.

Although they do not have voting rights, they are not original shares.

But he can also be considered one of the main shareholders of Morgan Stanley. in this case.

Letting its stake exceed 5% doesn't bother Morgan Stanley.

The second reason is that Abel already has a great reputation on Wall Street.

After this World War I.

His reputation on Wall Street is sure to reach new heights. His first confrontation with Wall Street has so far been a complete victory.

This also means that he has truly established himself on Wall Street.

Successful independent news portal!

Smith Capital Pacific Commercial Bank will become one of Wall Street's new giants.

Let a new Wall Street giant become the head of Morgan Stanley.

This can be considered completely normal. It also fits perfectly with Morgan Stanley's corporate culture.

Finally, Morgan Stanley may have figured it out.

USD/JPY will continue to rise.

If there is no way to close the position in time, Morgan Stanley will continue to lose money.

This will lead to a very bad financial report for Morgan Stanley this year. To avoid wasting time, there is nothing wrong with introducing Abel to Morgan Stanley's board of directors.

In fact, it doesn't take even half an hour.

Just a few minutes later, Philip Purcell called back.

"The board agrees. From now on, Mr. Smith, you will also be a member of the board of directors of Morgan Stanley."

» Philip Purcell spoke quickly. Morgan Stanley's CEO even changed his tone when calling this time.

Become very respectful.

Abel couldn't help but laugh at this confrontation with Wall Street.

One of the off-field resources he wanted most had it.

"Nothing. Now that I have become a member of the board of directors of Morgan Stanley, I certainly cannot sit idly by and watch Morgan Stanley suffer heavy losses and remain indifferent. »

Abel smiled and replied: "Let someone from Morgan Stanley's trading department come here to sign in."

"Thank you for reaching out, Director Smith."

Philip Purcell is also a great guy, and he changed his title right away.

"Haha ~ General Manager, I hope we can have a happy cooperation in the future."

"Happy cooperation."

Abel hung up the phone, but not before the smile on his face disappeared.

This business phone has been relaunched.

Abel looked at the contact notes, Richard Fuld said.

His unbridled smile bloomed again and became more cocky. Call with Richard Fuld of Lehman Brothers.

Similar content to Philip Purcell of Morgan Stanley.

On the market.

He received 5% of Lehman Brothers' voting shares and joined Lehman Brothers' board of directors.

Additionally, Lehman Brothers owns 5% of Google and 2.5% of News Corporation. Murdoch's media company.

Lehman Brothers is Murdoch's largest Wall Street investor.

This is why, in parallel space and time, when Lehman Brothers was on the brink of collapse, the reports from Murdoch's News Corporation were positive.

Abel received 3% of News Corporation's shares from the desert stock god.

If we add this 2.5%, he will also have two more seats on the board of News Corporation. Then it was all afternoon for Abel.

Almost all time is spent answering phones and negotiating.

In this moment, the smile on his face never faded.

afternoon.

As the New York Stock Exchange prepares to reopen. These calls become less and less frequent.

Abel felt a bit regretful. He didn't expect Goldman Sachs to not finish speaking this time.

This allowed him to gather four major investment banks in Hollywood, no, it must be said that the goal of gathering board seats of five major investment banks was unattainable.

Um... Originally there were five of the big four investment banks on Wall Street. That's common sense, right?

Fifth is Bear Stearns, which seems reasonable.

Currently, Abel has unified board seats at Bear Stearns, Lehman Brothers, Merrill Lynch Securities and Morgan Stanley.

All that was missing was Goldman Sachs, and it worked.

Because Goldman Sachs was absent from the beginning, even participating in an intermediary position for a long time. Its realization is clearly unattainable at this time.

In the afternoon, within ten minutes of opening.

Capital fled, trying to fight a dying struggle.

This sent USD/JPY falling back to 117.360 within half an hour.

But at that time, how could the cows release the beautiful piece of meat in front of them? I struggled for about an hour.

USD/JPY returns to the 119 line again.

After three o'clock in the afternoon, the line went up to 120.

120 appears to be the last warning line for the Bears to contend with.

After passing 120, next is a crisis. Wait until January 11.

USD/JPY is steady at 123,650.

In two days.

More than a hundred investment banks and small and medium-sized securities firms on Wall Street have declared bankruptcy.

At the same time, many Wall Street giants were present. During these two days, new appointments and dismissals were announced.

For example, Stanley O'Neill, a senior vice president at Merrill Lynch, was fired and is under investigation.

Bryn Bulley, chief financial officer of Lehman Brothers. He was also forced to resign and help the Wall Street bulldogs take charge.

Morgan Stanley and Bear Stearns are also experiencing similar hiring and firings. Among the giants are only PNC Financial Services Group and Goldman Sachs and there are no unusual moves.

This is the case on Wall Street.

If you keep an eye on the world.

Small and medium-sized investment banks have declared bankruptcy or are on the brink of bankruptcy in recent days, as has Wall Street.

The quantity should be doubled. More than 200 investment banks and small and medium-sized securities companies closed and went bankrupt

More than 15 Wall Street executives have "resigned" and been fired.

The misfortune of these companies and these leaders.

This seems to hint at the emergence of a new giant on Wall Street.

Smith Capital, founded less than a year ago. Through this war with Wall Street, she asserted her status and sense of existence.

At the same time, along with Abel Smith, he was welcomed to the boards of directors of four of the five largest investment banks on Wall Street.

After becoming their director.

Name of Abel Smith.

Finally, he has a new nickname in addition to the original "Wolf of Wall Street" moniker. Some people think that Abel's new nickname should be "Forex King".

Because most of his money is earned in foreign exchange.

But many people oppose it.

Many of these people believe that Abel is also making astronomical profits from stocks, crude oil and precious metal futures.

I haven't seen the US stocks that Smith Capital has invested in. There's less than a month left.

Did their overall increase exceed 50%?

This segment of people believes that this is Abel Smith, the new tycoon of Wall Street.

His new nickname will be "Investment God".

Although you cannot use an exaggerated title like "Lord". At least it must have a nickname like "King of Investment" or "King of Finance".

Anyway, in the first month of 2001.

All of Wall Street, and indeed all of America, finance and finance-related publications and programs bear Abel's name.

A large number of financial experts, commentators and analysts.

They all want to know, in this forex black swan event that lasts about half a month and is known in the industry as "Forex Smith Month". How much does Abel benefit?

This situation has even extended its influence to the global financial publishing sector.

After Hurricane Smith in October.

In the global financial media, a new "Storm Smith" broke out again.

(end of this chapter)