Chapter 854: The Bahraini bank is anxious

"Jacob, judging from the current situation, it is almost irreversible. Even if we do it ourselves, the funds required are very large and cannot be raised in a short period of time. By the time we raise the funds, the situation will be even worse.'

Evelyn Lochire shook her head slightly and sighed.

Threatening Sumitomo Corporation has not only failed, but has backfired and angered them. Sumitomo Corporation's liquidity will be more abundant after the contraction of funds, and it will be even more difficult to deal with.

In addition, the Howard family has openly joined the long camp. The long and short positions in the LME copper futures and LME aluminum futures markets in the UK are very different, and the shorts have lost their position.

The Bright Foundation alone has driven the Bank of Bahrain back, and now with the Howard family and Sumitomo Corporation, who are also strong enough to take on the Bank of Bahrain, the Bank of Bahrain has no chance of winning.

The only way out is for the short camp to immediately add three or four giants of equal strength, and to have the funds ready, in order to gradually turn the disadvantage around.

With London's status as an international financial centre, it is not difficult to find such giants, but the difficult part is how to get them to get involved.

In the current mess for the shorts, no one in charge of a financial institution would rush in unless they had lost their minds.

For the Rothschild family, the situation at this time can be summed up as being out of control.

'By the way, Jacob, this morning, Sid Monger tried to tempt me into shorting LME copper and LME aluminium futures,'

Evelyn Rothschild suddenly remembered what had happened at G.S. Warburg this morning, hesitated for a moment, and said to Jacob Rothschild.

Jacob Rothschild heard the meaning in his cousin's words, frowned for a moment, shook his head and said, 'Evelyn, this is almost impossible. Sid Monger will not take this risk. He is already very old, and the Warburg family cannot afford too many setbacks. If they want to enter the market, unless we personally take the lead.'

His cousin was an old friend of Sid Monger Warburg and knew him better. After hearing what he had said, Evelyn Rothschild knew there was no other way.

The Rothschild family would never go short, so that avenue was closed.

Could they just stand by and watch the Bright Foundation win?

'Well Evelyn, things have come to this. We can only hope that Philipp Brothers will step in themselves. We've made a little profit after all. Now let's keep an eye on Bahrain Bank. I don't think things are going to be quiet there now.'

Jakob Rothschild's eyes narrowed as he spoke of Bahrain Bank, and he began to plot in his mind.

Evelyn Rothschild was taken aback, and nodded in silence.

Things had come to this, and they could only try to make as much profit as possible.

As Jacob Rothschild had said, after learning that the Howard family had entered the market to go long and Sumitomo Corporation had expressed optimism, the management of the Bahrain Bank panicked.

And the Bahraini family could no longer sit still.

City of London, Bahrain Bank Headquarters Building, conference room.

The door to the meeting room was wide open, and the senior management of the Bahrain Bank walked in one after the other. They were aware of the oppressive atmosphere in the room, and when they saw that it was the chairman, Barrett Bahrain, who was sitting at the head of the table, not the president, Peter Nils, they all felt a chill in their hearts. Even their footsteps became lighter, and they silently took their places.

'Is anyone else missing?'

Barrett Balling looked around the room, noticed a few empty seats, and then looked at Peter Nils, who was sitting next to him, and asked in a low voice.

Although he was the chairman, he still did not know as much about the company as the bank president he had appointed.

Peter Nils had been silently counting heads for a long time. When he heard the chairman's question, he immediately replied, 'Chairman, all the executives in London are here, and a few senior executives are on business trips abroad.'

Ballit Ballin nodded and said in a deep voice, "Then the meeting will begin, and you will preside over it!'

'Okay!'

Peter Nils responded, and then said, "Some executives may not know why we are meeting, so let me briefly go over the basic situation with you.'

'At 1:14 p.m., Sumitomo Corporation released another research report, claiming that the current prices of LME copper futures and LME aluminum futures are seriously undervalued, and predicting that in the next six months, the market demand for copper will increase by 40%, and the market demand for aluminum will increase by 38%.

'Subsequently, Sumitomo Corporation once again entered the market at a high level...'

'At 1:40 pm, a large number of copper futures and aluminium futures were once again entered into the market. After checking, it was the Rock Fund controlled by the Howard family, and the long position was very strong and the attitude was extremely firm...'

As Peter Niles continued to tell the story, the faces of the executives who originally did not know the situation became solemn, and the executives who knew the news subconsciously looked at someone in a special position.

They saw that the middle-aged white man had a grave expression on his face, his eyes absent-mindedly wondering about something.

'This is the basic situation.'

'Next, please let Manager Curtis Bard talk about the current investment situation of LME copper futures and LME aluminium futures.'

Having said this, Peter Niles looked at Curtis Bard with a calm gaze, and the others also focused their attention on him.

Curtis Bard was the senior manager of the metals trading department of the futures investment department of the Bahrain Bank.

Curtis Bard was suddenly wide awake. He took a deep breath, opened the detailed investment registration form that had been prepared, and read it with a guilty expression on his face: 'Currently, we have invested 749 million US dollars in shorting these two futures. Among them, 11,890 lots of LME copper futures have been sold, worth 393 million US dollars, and the average selling price is 1,322 US dollars/tonne.

'LME aluminium futures were sold for 5,280 lots, worth 356 million US dollars, and the average selling price was 2,697 US dollars/tonne.'

After reading this, Curtis Bard paused for a long time.

Barrett Balling, who was sitting at the head of the table, looked at him with cold eyes and said sternly, 'What about the losses?'

Curtis Bard trembled slightly and continued reading, 'As of the 2:15 pm tally, the LME copper futures price was 1,368 US dollars per ton, a loss of 13.67 million US dollars.'

'The LME aluminum futures price was 2,787 US dollars per ton, a loss of 11.88 million US dollars.'

'The total combined loss was 25.55 million US dollars.'

'That is the full story. End of report.'

After saying this, Curtis Bard looked down at the table, as if something on the table was attracting his attention.

After hearing the figure, there was some commotion in the meeting room, and many people's gazes flickered between Curtis Bard and Barrett Balin, trying to figure out the chairman's attitude.

Peter Nils looked at the chairman and found that his face was cold and he had no immediate tendency to speak. He looked at another person and said, 'Manager George Monroe, the risk assessment report given by your risk assessment department at the time showed that LME copper futures and LME aluminium futures were overvalued and the risk of short selling was low. You have also seen the current situation. What do you have to say?'

The main responsibility of the risk assessment department is to conduct risk assessments on large investment proposals submitted by various departments and provide professional assessment reports, which are then submitted to Peter Nils together for a decision on whether to sign off on the investment.

The risk assessment department of the Bahrain Bank has always been operating very well, with strict controls in place, and there have been very few cases of misassessment, so Peter Nils has full confidence in it.

When George Monroe submitted the risk assessment report before, Peter Nils read it and then directly signed off on Curtis Bard's investment plan.

As the president of the bank, Peter Nils is responsible for the entire bank and is very busy. He cannot do everything himself and focuses mainly on management and operations. Most of the time, specific investment matters are handled by the various departments below.

Now that something has gone wrong, of course he is also responsible, but mainly he is responsible for leading the team, and the heaviest responsibility falls on Curtis Bard and George Monroe.

George Monroe stood up, looked ashamed, bowed to the top, and said self-deprecatingly, 'Chairman, President, I am really sorry that my department has caused the company a lot of trouble due to its lax control.'

After apologising, he went on to explain: 'When we conducted the risk assessment, we had already collected information on the global market. At that time, Sumitomo Corporation and Rock Fund had not entered the market to go long, and the US futures market was dominated by shorts. The production of copper and aluminium metals was indeed on an upward trend, so my department believed that it was profitable and produced that low-risk assessment report.'

'But looking back now, there was a fatal flaw in our department's assessment report, and that was that we did not find out the true strength of the Bright Fund and the American Galaxy Fund. Even if we exclude Sumitomo and Rock Funds, after the Galaxy Fund made its move, we were already at a disadvantage in the futures market.'

'More importantly, the Philip Brothers company has come under enormous pressure in the United States, leading to a decline in capital investment here in London.'

'My department has greatly underestimated the strength of the bulls, and I am willing to take responsibility.'

George Monroe's attitude was much more sincere than Curtis Bard's, and he first admitted his mistake and then explained it in a well-placed manner, taking responsibility for it, which somewhat appeased the anger of Barrett Balling and Peter Nils.

However, as a result, the pressure was once again placed on Curtis Bard, the senior manager of the metals trading department.

The latter's face became very ugly, and his brain was working frantically, pondering what excuse to use later to reduce his responsibility.