Chapter 875: The Bahraini Bank Thunderstorm

Although the UK and the US are separated by the Atlantic Ocean, the influence of the financial markets easily transcends the limitations of space.

The news of the takeover of the Philipp Brothers company spread to London, causing a huge shock.

Especially those at the top of the UK, who understood even more the meaning behind the appearance of the Chemical Bank of New York.

For the Bank of Bahrain, it was devastating news. When Barret Bahrain heard the news, he almost fainted.

He seemed to see the fate of the Bank of Bahrain, but there was nothing he could do. No matter how hard he struggled, he could only watch the Bank of Bahrain sink deeper and deeper, which was the most painful!

If Barret Bahrain's reaction was the biggest, then the second biggest reaction would have to be that of Jacob Rothschild.

at the Rothschild family castle on the outskirts of London.

Jacob Rothschild's face was so gloomy that it looked like it was going to drip with tears. A mixture of anger, depression, and irritability filled his heart, making his chest feel stuffy.

'Jacob, it's already happened, we just have to face it,'

Evelyn Rothschild, who was sitting nearby, was annoyed, but since he had not devised the strategy or plan, his emotions were not as strong as Jacob Rothschild's. Seeing that Jacob Rothschild's fists were clenched and his chest rising and falling rapidly, he was worried that his cousin could not handle it and said with concern:

Jacob Rothschild took a deep breath to calm himself down.

'I never thought that the Chinese kid would get involved with the Rockefeller family. It seems our plan has failed.'

'I always felt that this was some kind of conspiracy by the old man David Rockefeller, otherwise there is no way that Philipp Brothers would go all out against Galaxy Fund for no reason.'

Jacob Rothschild's original plan was to get Xia Yu into conflict with the Rockefeller or Morgan consortia, so that he could then come to the rescue when Xia Yu was at his lowest ebb, thereby completing his control over Xia Yu, who would then be forever grateful.

But with the joint acquisition of Philip Brothers by Galaxy Fund and Chemical Bank of New York, it meant that the Jiuding consortium had become aligned with the Rockefeller consortium, and they already had a certain basis of common interests.

As long as David Rockefeller recognises the value of Xia Yu and the Jiuding consortium, then Jacob Rothschild's plan is almost impossible to achieve.

New York is, after all, the territory of the Rockefeller family and the Morgan consortium. Even if there is a chance, it won't be long before the Rothschild family intervenes.

Therefore, it is understandable that Jacob Rothschild admitted defeat.

Upon hearing Jacob Rothschild's depressed words, Evelyn Rothschild also felt helpless. He nodded in agreement and said, 'It's impossible in the short term. The Jiuding Consortium is also involved in supporting the Republican Party's election campaign, and its interests are aligned with those of the Rockefeller family. With the strength it has shown so far, the Jiuding Consortium is already qualified to establish a foothold in the United States.'

'With the financial strength that the Jiuding Consortium has demonstrated this time, it has absolutely shocked the entire Wall Street. General financial institutions dare not act lightly, and powerful conglomerates, unless there is a major conflict of interest, will not go to war with the Jiuding Consortium. Unless the Jiuding Consortium does too much, otherwise the Jiuding Consortium will develop very easily and rapidly in the United States in the next few years.'

Evelyn Rothschild's conclusion is based on two points: first, Xia Yu's strong capital, and second, Xia Yu's ability in the financial market.

Ability and capital are the two most important factors for success in the financial sector. With both combined, not many companies would dare to collide with the Jiuding Consortium.

Just think of what happened to the Philipp Brothers. Even if some institutions have ideas, they have to be careful.

'Forget it, just keep an eye on things in the US. We can only hope that the Chinese kid makes a fatal mistake, otherwise the chances are slim.'

'For now, continue to maintain a friendly and cooperative relationship with him, and then look for an opportunity to act later.'

'For now, we should still do our best to reap the benefits that we can get our hands on. If we continue to drag our feet, the value of copper and aluminium futures will fall, and the Bank of Bahrain will likely be able to survive.'

'Evelyn, what do you think about doing it tomorrow?'

Jacob Rothschild said to Evelyn Rothschild after a long pause.

Evelyn Rothschild pondered for a moment, then nodded slowly: 'Under the current circumstances, this time period is about right. I'll make the arrangements this afternoon and we'll do it first thing tomorrow morning!'

Jacob Rothschild nodded slightly and said, 'Good, Evelyn, I'll leave this to you. Be careful. If the Bahraini bank collapses, I'm sure there will be a lot of people interested in it. We can't afford any more surprises.'

Evelyn Rothschild nodded firmly, 'I know.'

After chatting for a while longer, Evelyn Rothschild quickly left the Rothschild family castle.

As he watched Evelyn Rothschild's black luxury car drive off, for some reason, Jakob Rothschild still felt a little uneasy, as if something bad was about to happen that he didn't know about yet.

But when he thought about it, he couldn't be sure what it was.

Distracted by his thoughts, Jakob Rothschild walked straight to the flowerbeds, picked up the watering can and filled it with water, then went to water the flowers to calm his mind.

This was his unique way of relaxing himself. Contact with nature allowed him to let go and his mind would become clearer.

...

Early the next morning, an appalling piece of news broke out of nowhere and spread rapidly through the financial markets of London. Both financial industry practitioners and ordinary retail investors and depositors became worried or anxious after hearing the news.

No one knows who spread the news, and there is no conclusive evidence, but those who heard it subconsciously wanted to believe it.

It was because the news seemed so real, very similar to the news leaked by the internal employees of the Bahraini bank.

The news contained detailed short data from Bahrain Bank, as well as the amount of losses calculated based on the latest LME copper futures and LME aluminium futures prices – 870 million US dollars!

And Bahrain Bank's total equity capital is 250 million pounds, which, at the current exchange rate, is just over 500 million US dollars.

In other words, Bahrain Bank's actual assets are approximately negative 370 million US dollars!

Bahrain Bank is about to go bankrupt!

It seems that it is about to follow in the footsteps of the Philipp Brothers.

The dire situation of the Philip Brothers company has been clearly explained in the British media. With losses of such a magnitude, almost no one is optimistic that Bahrain Bank can survive.

In an instant, Bahrain Bank's stock price plummeted as a result of a steady stream of sell orders.

But at this moment, no institution dares to acquire it.

If someone wants to take over Bahrain Bank, in addition to the original debt, they will have to bear at least another 370 million US dollars in losses. This loss is even greater than that of the Philip Brothers company!

And unlike the Philipp Brothers, the Bank of Bahrain is essentially a commercial bank, with more customers than Philipp Brothers and very few difficulties with withdrawals.

In the event of a run on the bank, the assets of the Bank of Bahrain would be lost very quickly, and a vicious cycle would quickly set in.

The risks of the Bank of Bahrain are even greater than those of Philipp Brothers!

Faced with the turbulent financial markets caused by the unrest, the Bank of England had to intervene.

The Bank of England immediately announced that it would launch a comprehensive investigation and that it would give the public a definitive answer within a week, asking the public to be patient.

While investors waited anxiously for news, George Berkeley moved.