Chapter 1315: Taking Over the Air Force Banner
On May 25th, the sky was clear and the sun was exceptionally bright. The temperature in Hong Kong reached 34 degrees Celsius.
In the afternoon, Xia Yu simply relaxed in his own villa.
There was a swimming pool of over 100 square metres in the backyard of the villa. Xia Yu, wearing sunglasses and only a pair of beach shorts, was lying on a beach chair by the pool, basking in the sun.
In the pool, two mermaids were playing around, and Xia Yu was smiling at the sight, enjoying himself.
Cindy and Li Qian were both wearing very refreshing and seductive bikinis. Li Qian's impressive figure could not be hidden, while Cindy was wearing something even more seductive.
Just then, Cindy seemed to have tired of playing, and she was the first to come out of the water, walking towards Xia Yu and sitting down on the beach chair next to him.
'Xia Yu, can you help me apply some olive oil?'
Cindy asked, tilting her head slightly and looking at Xia Yu, and winking.
Xia Yu beamed, smiling lightly and saying, 'Of course, beautiful lady.'
After saying that, Xia Yu got up, squeezed out a large glob of olive oil, and began to apply it to Cindy.
After Xia Yu had finished applying the oil to Cindy with hardly any dead spots, Li Qian also came up just in time, and Xia Yu, without discrimination, also began to apply the oil to Li Qian.
Because he was being so careful, it took a full ten minutes to complete the operation.
The three of them then lay down on the beach chairs with the sun, Cindy and Li Qian lying to the left and right of Xia Yu.
'Xia Yu, the Illinois Bank on the mainland is in big trouble, will that affect the situation in Canada?'
While Xia Yu was applying olive oil to Li Qian, Cindy, feeling bored, picked up the information on the table next to them and read it. It was a news article from the Jiuding News Agency, which focused on the news about the Illinois Bank on the mainland.
Cindy knew that Xia Yu was conspiring with her father against Canada, and they were both shorting the Canadian dollar. After reading the news, she couldn't help but feel a little worried.
Xia Yu glanced at the information in Cindy's hand and said with a faint smile, 'It will definitely have an impact. The Rothschild family is behind this, and their goal is to completely defeat the Chicago Consortium.'
'I believe that in the next two days, the Chicago Consortium will withdraw all their funds. At that time, it will be their time to counterattack.'
'Isn't this very bad for you?'
Cindy suddenly became nervous. She didn't want to see Xia Yu and her father fail.
'Don't worry, the Rothschild family won't be able to turn things around. I have everything under control!'
'If they think the Chicago Consortium is the biggest force, they are making a big mistake...'
Xia Yu took Cindy's smooth jade hands and stroked them, speaking calmly.
Xia Yu smiled at the corner of his mouth, confident and self-assured, his appearance full of charm, and Cindy couldn't help but be a little lost in thought.
...
The Continental Illinois Bank is about to collapse, and naturally Xia Yu hopes it will happen. Of course, he also knows that it will be difficult, and that the US government will not want it to happen, nor will the Morgan consortium.
Xia Yu knows that the Continental Illinois Bank is a target that the Morgan consortium has infiltrated. If this bank collapses, the McCormick family will suffer heavy losses, and the Morgan consortium will also suffer losses.
However, the Chicago Consortium is in crisis, and Xia Yuke is not going to give up such a good opportunity. He is going to be the driving force behind the scenes.
As for the situation in the Canadian financial market, as the saying goes, everything is under control, and the Rothschild family cannot turn the tables!
The final victory can only be his!
Soon, Polaris Capital began to take action.
A sum of money began to pour into the stock market, and it was necessary to short the major listed companies of the Chicago Consortium.
At the same time, Dun & Bradstreet Group also became a key short selling target, as it is the parent company of Moody's, one of the world's three major rating agencies.
In terms of public opinion, the newspaper controlled by Polaris Capital also began to follow up on the news of Continental Illinois Bank, and also analysed the dependence of many American banks on Continental Illinois Bank, and hypothetically analysed the impact of the collapse of Continental Illinois Bank.
The news was neutral, sounding a note of concern for the country and its people, reminding the regulatory authorities to strengthen supervision to ensure that there would be no systemic risks.
No one else could detect the sinister intent behind it.
But in terms of impact, it was huge.
On 25 May, the amount of funds applied for withdrawal reached 1.78 billion US dollars.
On 26 May, the amount of funds applied for withdrawal reached 2.14 billion US dollars.
Over the course of four days, it reached 6.55 billion US dollars!
The other three banks also showed signs of a capital rush, with a loss of $1.01 billion.
Fortunately, on the afternoon of May 26, the Chicago consortium finally withdrew all of its funds from the Canadian money market, relieving some of the pressure.
After the principal and leveraged financing were used, more than $20 billion was used. After deducting the leverage of other banks, $20.29 billion was recovered.
The total profit was 780 million US dollars, which was unavoidable. As the main force of the crash, the initial cost was higher, the profit was relatively lower, and in order to withdraw hastily, they were also cheated.
According to the original expected plan, the profit would have been at least 3 billion US dollars, but unfortunately...
Of the 195.1 billion US dollars, the funds of the four families were 8.3 billion US dollars, and another 112.1 billion US dollars were from the four major banks and other financial institutions.
The Continental Illinois Bank had the most capital, at 2.85 billion dollars.
Then the Continental Illinois Bank quickly traded with several other banks, first obtaining 2.62 billion dollars in capital.
The Continental Illinois Bank suddenly had 5.47 billion dollars in capital.
But after the capital came back, 4.7 billion dollars was stopped from rolling over, effectively freezing it.
The Continental Illinois Bank could only use 770 million dollars.
According to the trend of bank runs in the four days since the crisis broke out, the funds would run out on the 27th as usual.
Just then, official assistance finally arrived.
After studying the situation together, Federal Reserve Chairman Volcker, Federal Deposit Insurance Corporation Chairman Isaac, Director of the Office of the Comptroller of the Currency Connaught, and the executives of six of the seven largest banks in the United States passed a decision.
The Federal Reserve Bank of Chicago, one of the twelve regional Federal Reserve Banks, stepped in and lent the Continental Illinois Bank $3.6 billion in emergency funds!
In addition, the sixteen banks were forced to provide a total of up to $4.5 billion in thirty-day credit lines to the Continental Illinois Bank.
The $3.6 billion was credited to the Continental Illinois Bank account early on the 27th, while the other $4.5 billion in thirty-day credit lines needed to be raised by the major banks one after the other, which took time.
At this time, the withdrawal of more than 20 billion US dollars of funds by the Chicago consortium not only led to the weakening of the short position by more than 20 billion US dollars, but also increased the long position by more than 20 billion US dollars.
The momentum of the offensive and defensive reversed instantly!
The bulls sounded the horn of counterattack, and the bulls, led by the six major Canadian banks, all took out their spare funds and rushed into the foreign exchange market, driving the short position into a retreat.
The Canadian dollar exchange rate quickly surged back above 0.8 against the US dollar, and the general trend of the bulls quickly took shape.
The Canadian stock market also began to rise again, with the Toronto 300 Index once again surging above 2,400 points.
The short positions were in a perilous situation.
Richard King Mellon could no longer sit still, and placed a long-distance phone call to Xiangjiang to discuss countermeasures with Xia Yu.
Xia Yu directly gave Richard King Mellon a reassurance, informing him that he had already found other allies and would soon raise the banner of the air force to fight back strongly!