Chapter 865: Crash

"Okay, I understand.'

'Keep an eye on Philip Brothers!'

After saying this, Xia Yu hung up the phone decisively.

Looking at the calm expression of his boss Xia Yu, Song Yang was a little at a loss, wanting to ask but not daring to.

At first, he happened to receive a call from a stranger who said he wanted to meet Xia Yu. Not knowing what was going on, he could only send someone to the operations room to ask the boss to come over. He never expected the boss to simply chat for a few moments and then hang up.

Xia Yu glanced at Song Yang, didn't explain, and directly ordered, 'Order the people below to speed up the shipping of hidden accounts, and stop selling futures contracts on the surface accounts. Go arrange it now.'

Song Yang was a little puzzled, but he suppressed his curiosity and nodded, 'Yes!'

'Boss, I'll go first!'

After saying that, Song Yang immediately exited the office and walked quickly towards the operations room.

After pondering for a moment in the office, Xia Yu did not go to the operations room, but instead left Galaxy Fund in a low-key manner and drove back home.

He went to notify the others to also speed up the shipping.

He had just been informed over the phone that the senior management of Philipp Brothers had visited US Treasury Secretary G. William Miller and Federal Reserve Chairman Paul Volcker.

The informant did not say what the purpose of the visit was, and obviously did not know.

But this information was enough for Xia Yu.

He understood that Philipp Brothers was on the verge of collapse and was now fighting for its life.

He did not take it lightly, but chose to reduce the risk in the first instance by fighting back by shipping as quickly as possible, bringing other institutions on board, and letting the giants of Wall Street fight amongst themselves.

The more goods he released on his side, the more the institutions on Wall Street would take over, and the more reluctant they would be to get off the boat.

Perhaps some institutions, faced with millions of dollars in profits and pressure, would choose to call it quits and relieve the pressure, but he did not believe that faced with tens of millions or even billions of dollars in profits, these institutions would give in and let go!

As long as these institutions are willing to bear the burden, it will be difficult for the US Treasury Department to implement its policies, and even the policies will be aborted. Unless there is a tangible exchange of benefits, the Philip Brothers will be doomed.

...

100 million US dollars!

200 million US dollars!

300 million US dollars!

After Xia Yu's order to speed up shipments was sent from New York to the world, spot and futures contracts were sold quickly, and large amounts of money flowed into the accounts of several Swiss banks that had already been prepared. Some of it was then transferred between Swiss banks and then out, into the accounts of Jiuding Bank or the island nation's Chiba Bank.

Globally, the contracts in the futures market of the island country were the first to be cleared, and the island country market had Sumitomo Corporation sitting in, so even though Xia Yu cleared his positions and left, it didn't cause any turmoil.

In the UK, the Bahrain Bank saw the continuously rising prices of LME copper futures and LME aluminium futures, and they were like ants on a hot pan, unable to do anything about it. They begged everyone, but no one reached out a helping hand, for fear of being dragged into the quagmire.

'The market value has fallen below one billion US dollars, that's great!'

Inside the New York Jiuding Securities Company, all one could see was the stock price of the Philip Brothers Company fluctuating, dropping from 6.66 US dollars to 6.65 US dollars a share. The market value instantly fell below one billion US dollars, and Toby Moulton's emotions were stirred, and he couldn't help but shout out in joy.

Xia Yu couldn't help but raise the corners of his mouth, and he thought to himself, 'It's time to act!'

Sure enough, Toby Moulton immediately began to carefully buy shares as instructed by his previous work plan.

Xia Yu, meanwhile, picked up a copy of the New York Daily News from the newsstand next to him and began to flip through it. On the front page, in the most conspicuous position, a bold line of words caught his eye. Translated, it read: 'Philip Brothers is about to go bankrupt!'

Below the bold print, there was a lengthy article of a thousand words, which logically and convincingly described the real situation and speculations about the Philip Brothers Company. It concluded with the sentence that the Philip Brothers Company was insolvent and there was a high risk of investment, so investors needed to be extremely careful.

Before Xia Yu's acquisition, the New York Daily News was already a top-notch newspaper with a daily circulation of 700,000 copies. After optimisation and adjustment, it is now even more popular, with a daily circulation of 780,000 copies.

Such a newspaper clearly looks down on the Philip Brothers company, so you can imagine the bad influence.

The market value of the Philip Brothers company fell below one billion US dollars this morning, and the New York Daily News played a significant role.

For the Philip Brothers company, the nightmare doesn't end there.

As its market value fell below $1 billion, the long positions in high-grade copper futures and aluminium futures seemed to be encouraged and their morale boosted. They once again increased their long positions, as if they wanted to seize the opportunity to drive Philip Brothers to the bottom with one blow and leave them with no chance of recovery.

Seeing this situation, Song Yang, who had been closely monitoring the market, immediately instructed the traders to increase the intensity of selling contracts.

Every futures contract that was thrown out was instantly bought by an unknown institution, and the Galaxy Fund reaped a pleasing amount of money.

In addition, Phillip Brothers also welcomed a joint investigation by the New York Board of Trade and the New York Mercantile Exchange.

Whether the investigation team was dispatched under pressure from public opinion is unknown, but since the two official institutions have already stepped in to investigate, there will definitely be a result, and the majority of investors have the right to know the true situation of Phillip Brothers.

If Phillip Brothers is really insolvent and there is a major risk, then Phillip Brothers will definitely be monitored by the New York Mercantile Exchange to prevent management and shareholders from transferring assets.

Philip Brothers.

Tender Wells closed his eyes in despair as he watched the investigators enter the operations room and finance office respectively.

Unlike the investigation into the Galaxy Fund, the situation at Philip Brothers was more serious, so the investigators simply could not be stopped.

Tender Wells knew very well that the company was truly insolvent, and as long as the investigators carefully examined the financial income and expenditure and investment accounts, they would soon discover the truth.

Looking through the glass at the reporters crouching around downstairs, Tendler Wells let out a long sigh and instructed his secretary to call the company's directors one by one.

The investigation team had made a surprise attack, and there was nothing he could do about it now. He might as well prepare the directors.

If any director could turn things around in the desperate situation and get the Federal Reserve, which had an ambiguous attitude, to lend a hand, then Philipp Brothers could still be saved. Otherwise, the day of bankruptcy was not far off.

As the minutes ticked by, more and more directors arrived, but the investigation team was unyielding and just kept digging.

Finally, at around 5:00 p.m., the investigation team finally stopped.

There was no feedback in person. Before leaving, the leader of the investigation team only left a sentence to Tendler Wells: 'The security deposit of Philipp Brothers has been completely used up. The security deposit of 23 million US dollars must be replenished within 24 hours, otherwise the exchange will intervene forcibly.'

After saying this, the investigation team left without any hesitation.

But this sentence made everyone present change their faces.

Now there is a security deposit shortfall of 23 million US dollars. When the market opens tomorrow, the amount will only increase, not decrease.

But everyone knows their own business, and the Philipp Brothers company really is broke!

Will the company inevitably be doomed to bankruptcy?

As he watched the somewhat dazed Kost Philipp, Tendler Wells clenched his fists, but then finally let them go weakly.

Everything had happened so quickly that they had been sentenced to death before their plan could be implemented.

Then a group of heavy-hearted people walked into the meeting room to reconvene.

The result of the meeting was terrible. The major directors were unwilling to pay to help the company tide over the difficulties.

Obviously, in the face of the indifference of the Federal Reserve and the US Treasury, they finally chose to give up and use the cost of destruction to force the government and the Federal Reserve to make a choice.

The next day, the bulls became even more frantic. The floating losses of Phillip Brothers continued to expand, and the margin gap easily exceeded 30 million US dollars, soaring towards 40 million US dollars.

Seeing that Phillip Brothers was not taking action, and that the repeated warnings issued by the New York Mercantile Exchange had been to no avail, the Exchange decided to intervene directly, temporarily depriving Phillip Brothers of its trading seat and reporting the matter to the New York Board of Trade, requesting that Phillip Brothers' assets be frozen.

There was no other way: the New York Mercantile Exchange could not help Phillip Brothers close out its positions. After all, the latter was a short seller, and if the positions were closed out forcibly, the New York Mercantile Exchange would have to pay.

Since it was unable to recover the margin, how could it be so stupid as to pay money to help Philip Brothers close out its positions?

If positions were to be closed out, it would be done using Philip Brothers' assets!

When a large number of NYCT staff re-entered Philip Brothers, a large group of reporters swarmed in.

When they learned that the NYCT had actually come to seal off Philip Brothers, the group of reporters immediately became agitated. They knew very well what this meant.

Soon after, the news spread rapidly throughout Wall Street that the Phillip Brothers Company was insolvent and had collapsed!