Chapter 864: The position of the Federal Reserve and the Treasury Department

'The situation has reached this bad point, I don't think the government would want to see us go bankrupt.'

After a long while, the words of a director broke the silence.

Tender Wells, sitting at the head of the table, slightly raised the corners of his mouth, and exchanged a faint glance with the man who spoke.

Kester Philip perked up and immediately said, 'Yes, now that the government has finally managed to initially curb inflation, the bankruptcy of our company will have the greatest impact on the government. I suggest that we immediately seek an audience with G. William Miller.'

The G. William Miller he was referring to was the current Secretary of the Treasury under the Carter administration.

Not only that, G. William Miller also served as the only non-Jewish person to serve as Chairman of the Federal Reserve from 1978 to 1979. Although he only served for one year, he also had a lot of close relationships with the Federal Reserve.

Since the Hunt family, which was about to go bankrupt after speculating in silver futures, was able to force the Federal Reserve to lend them eleven billion dollars to get through the difficult times by playing the rogue, why couldn't Philipp Brothers do the same?

Upon thinking about this, Kester Philip's heart stirred, and his gaze swept over the faces of the several directors stationed at the bank.

In particular, the director stationed by Bear Stearns was Kester Philip's primary focus.

If you want the U.S. Treasury and the Federal Reserve to help, the best thing to do is to get a group of investment banks to come forward together, and this probability is the greatest.

And Bear Stearns is a direct descendant of a Jewish family. Although Phillip Brothers is also a Jewish company, its internal forces are currently mixed up and its strength is far less than that of the former.

Bear Stearns has lent more than ten billion US dollars to Phillip Brothers. If Phillip Brothers goes bankrupt, apart from the Philip family, Bear Stearns will be the second biggest loser.

Feeling the stares directed at him, the director of Bear Stearns, whose face had turned black, swept a cold gaze over the faces of the crowd and said in a stern voice, 'Everyone, don't look at me. Going to the Treasury Department or the Federal Reserve is not a bad idea, but Bear Stearns alone is definitely not going to be able to solve this problem. Everyone must come forward together!'

Afterwards, he looked at the head of the table, Tendler Wells, and said, 'Wells, the company also has large-scale lending business with other investment banks. I suggest you ask them to come forward with us.'

Tendler Wells, who had achieved his goal, nodded with a smile and said, 'No problem, I don't think they will refuse.'

'Then don't waste any time, quickly discuss the specific steps and act as soon as possible,'

Kester Philip urged impatiently.

The group, having reached an agreement, immediately began discussing it, and soon a complete implementation plan took shape in the minds of this elite group.

After the meeting, many of them immediately hurried to their respective companies to report on the true situation of the meeting.

Looking at the empty conference room, Tendler Wells, with a worried expression on his face, went to the French windows and looked out at the New York Mercantile Exchange in the distance, muttering to himself, 'I've done the last thing I can do. If this doesn't solve it, then the Philip Brothers company will really have to go bankrupt.'

...

'Miller, long time no see.'

'Volcker, you look great.'

After exchanging greetings, G. William Miller followed Paul Volcker into the living room and started making coffee.

'Miller, they've already approached you? As a lobbyist?'

Paul Volcker said with a smile.

He knew that the Treasury Department did not take any major actions during the critical period before an election, so he could not think of any other reason for G. William Miller's sudden visit except for the Philipp Brothers case.

'It seems they have also approached you.'

G. William Miller smiled lightly and then asked with concern:

'Volker, what are you going to do?'

Paul Volker smiled and did not answer directly, but instead asked, 'Did you come with the ideas of the one at the White House?'

G. William Miller's smile froze, then relaxed, and he guessed correctly.

'Yes, the President hopes that market order can be restored to normal. Only a stable financial order can create greater value for Wall Street and the United States.'

Paul Volker smiled indifferently and said, 'The New York Board of Trade and the US Commodity Exchange Commission have already intervened in the investigation, but as far as the current investigation results are concerned, all transactions are legal.'

Paul Volcker's attitude left G. William Miller at a loss for words. He frowned slightly and said solemnly, 'Volcker, the Federal Reserve has finally managed to curb inflation. If the Philipp Brothers goes bankrupt, it will affect the whole of Wall Street, and the industrial sector will also be hit. The consequences will conflict with your plan.'

'Four months ago, you were worried about the collapse of the International Metal Investment Corporation. The Federal Reserve lent the Hunt family $1.1 billion. This time, the impact is no less than the last time!'

As a diehard supporter of President Jimmy Carter, G. William Miller understood the consequences of the collapse of the Philipp Brothers.

The Democratic Party was already in a downward spiral, and inflation was largely to blame for the economic downturn. Voters were dissatisfied and voted with their feet. If the collapse of Philipp Brothers triggered economic turmoil, the Republicans would definitely seize the opportunity to attack the Democratic Party.

Although ordinary voters have nothing to do with the final stage of the election campaign, he is afraid that the Republicans will use this incident to make a fuss.

The reason why he would consider this is because he knows that Jimmy Carter's think tank has studied the plan overnight, intending to use the opportunity to save the Philip Brothers company as a way to gain the support of some Jewish people on Wall Street.

The Republicans have used the opportunity of the Middle East to temporarily draw most of the Jewish forces into the Republican camp. If they can divide some of them, they will be able to add some winning chances to Jimmy Carter's campaign.

Paul Volcker was able to become chairman of the Federal Reserve and remain in that position until 1987. His intelligence was definitely among the best in the world.

Although G. William Miller didn't say so, he could guess the real reason why G. William Miller was in such a hurry.

Although he was a German-Jewish, he didn't necessarily have to save Philip Brothers.

Jews are famous for their solidarity in the world, but the most united time is when it comes to Israel. In fact, in ordinary times, when their respective interests are involved, they also have different ideas and positions.

He knew very well that Philip Brothers was different from the Hunt family, and the timing was also too sensitive. Even if he was the chairman of the Federal Reserve, he still had to consider things at this time, such as the general position of the Federal Reserve, and the conditions under which he could take over after G. William Miller was removed from the position of chairman of the Federal Reserve.

Therefore, in this matter, he had to be extremely cautious.

What's more, the Philip Brothers Company was not yet in the most dangerous of times, so he would not rush to make a decision.

Paul Volcker could only shake his head with a troubled expression on his face and say, 'Miller, although I am the Chairman of the Federal Reserve, on some important matters, I still have to submit them to the board of directors for discussion. I will immediately gather a think tank to study them and then submit them to the board of directors. As for the outcome, it will take some time.'

G. William Miller frowned, his gaze fixed on Paul Volcker, and he said with a serious expression, 'Volker, the situation has now reached the most dangerous point, and it must be resolved as soon as possible, otherwise there will be a disaster. The Soviet Union is hoping that we will get stuck in the mud and not be able to climb out.'

Hearing the Soviet Union, Paul Volcker's gaze hardened, but he still maintained his position.

He said solemnly, 'Miller, I've already been thinking about how to solve this matter safely. You should understand very well that some things are deeply involved and not so easy to solve. How much capital from Wall Street has entered the market now? Have you investigated this clearly?'

'Last time, the Federal Reserve saved the Hunt family for the market. If it saves the Philipp Brothers again this time, then there will be trouble in the future economic order. The crocodiles on Wall Street will repeat this kind of thing recklessly, because no matter the outcome, the Federal Reserve will always be there to cover the bottom! The risks and benefits are not equal!'

'It is best to leave matters of the financial market to the market itself, as this will help to optimise and develop the financial market.'

'If it comes to a really dangerous situation, the Fed will fulfil its duties, but before that happens, I think you should think about how to make adjustments in terms of policy and supervision.'

G. William Miller looked thoughtful for a long time before nodding and saying, 'You are also right.'

'However, to be on the safe side, I hope you can submit it to the Federal Reserve Board of Directors for discussion as soon as possible, and the finance and financial sectors will also take corresponding effective measures as soon as possible.'

Paul Volcker nodded and said, 'No problem.'

Then the two men chatted for a while, after which G. William Miller found an excuse to leave.

As he watched G. William Miller's car drive away, Paul Volcker's gaze became a little absent-minded.

Thinking of the Rockefeller, Morgan, Jewish and other financial giants on Wall Street, he couldn't help pressing his temples and muttered with a headache, 'What a nuisance. We'll see. Maybe some companies will be interested in the Philipp Brothers. It would be best if the market could solve it. As long as it doesn't go bankrupt, whoever takes over will be the best outcome for me...'