v3 Chapter 748： Hold the deadly handles of 2 banks

After tidying up the room, we had lunch at home by the way. After a nap, Xia Yu and Elena went to the Bright Fund Company together.

"Hi boss!"

Seeing Xia Yu and Elena come together, George Berkeley greeted Xia Yu immediately, and then nodded towards Elena.

"George, it's been a long time since I saw you, have you been under pressure at work lately?"

Xia Yu asked in an easygoing manner.

George Berkeley smiled and shook his head: "There is not much pressure, your boss has pointed out the direction for my work, the company will not take detours, it is easier!"

"Just relax, think more and summarize when you have time!"

"I know!"

...

During the chat and laugh, a group of people came to the office, and after they were seated one after another, someone immediately made tea and coffee.

After the serving subordinates went out, Xia Yu took a sip of tea and asked quietly, "How is the situation with Standard Chartered Bank and Royal Bank of Scotland?"

George Berkeley showed a smile on his face and said, "Boss, we have acquired a lot of shares in these two banks."

"Among them, 26% of the shares in Standard Chartered Bank were acquired, and 15% of the shares were acquired from four small shareholders with a shell company, and the remaining 9% was acquired from the stock market."

"Acquired 22% of the Royal Bank of Scotland, 16% of the shares from five minority shareholders, and the remaining 6% from the stock market."

"Because we have deliberately lengthened the timeline, the stock prices of the two banks have not risen much."

Calculating carefully, it has been nine months since May last year.

As for the entire acquisition plan, the wholly-owned acquisition of the two banks will be completed within two years. Today's shareholding ratio is relatively low, which shows that George Berkeley has acted cautiously.

Xia Yu took a sip of tea, sighed and asked: "London Gold Futures, Standard Chartered Bank and Royal Bank of Scotland have eaten a lot, right?"

George Berkeley smiled and nodded: "We have eaten a lot, among which Standard Chartered Bank has eaten our $2 billion contract, and Royal Bank of Scotland has eaten our $2.2 billion contract."

"As for whether they will take over the futures contracts of other institutions, I haven't inquired yet!"

Xia Yu said with a smile: "It doesn't matter if you don't inquire, it will be enough for them to take over our contract."

By the end of this month, it will be more than ten days before the international gold price can drop below 600 points.

Standard Chartered Bank and Royal Bank of Scotland both received orders above 830.

Even if it only fell to 600 points, the drop was more than 27.7%.

This means that by that time, Standard Chartered Bank will have at least a loss of more than US$500 million, and the Royal Bank of Scotland will have a loss of more than US$600 million.

It is equivalent to the net profit of each bank in one or two years or two or three years.

As long as this thunder bursts out, it will definitely blow up the stock prices of the two banks, and a bad Standard Chartered Bank will go bankrupt.

Thinking of bankruptcy, Xia Yu moved in his heart and asked George Berkeley with concern: "What is the total capital of George, Standard Chartered Bank and Royal Bank of Scotland?"

Although there is only one word difference between the total capital and total assets of a bank, there are essential differences.

Bank capital refers to the own capital invested by the owner of bank capital to obtain profits for operating the bank, and the monetary capital concentrated in the bank through various channels.

Bank capital is to bear the unexpected loss of the bank.

In order to prevent loan and investment losses from affecting normal operations, banks must draw loan loss reserves based on the risk status of loans and investments.

However, the loan loss reserve only covers expected operating losses, and the loan and investment losses that exceed the loan loss reserve must be borne by capital.

If the unexpected loss exceeds the amount of capital, the bank will be in a state of insolvency and bankruptcy will occur.

The bankruptcy of the Bank of Barings that resonated throughout the world in past lives was forcibly bankrupted and liquidated because its losses exceeded the bank's capital.

In 1995, the Bank of Barings, which had total assets of more than 6 billion pounds in 1995, had a global control of 27 billion pounds in assets, suffered a loss of 600 million pounds due to a subordinate's own proposition and high leverage speculation in the Nikkei 225 futures contract. Far beyond the total capital of the Bank of Barings 350 million pounds.

Bank of Bahrain went bankrupt as a result, and was eventually acquired by the Dutch International Group at a nominal price of one pound more than ten days later.

Therefore, bank capital is extremely important for banks. The higher the bank capital, the lower the risk of bankruptcy.

George Berkeley smiled and said solemnly: "The total capital of Standard Chartered Bank is 250 million pounds, and the total capital of Royal Bank of Scotland is even higher, which is 300 million pounds."

The current pound/dollar exchange rate is 1.29 US dollars per pound.

Xia Yu had exchange rate information in his mind and quickly calculated it in his mind.

Converted to British pounds, Standard Chartered Bank lost about 240 million pounds.

The Royal Bank of Scotland has lost more than 260 million pounds.

In other words, when the international gold price fell below 600 points, even if Standard Chartered Bank did not accept any gold futures contracts from other institutions, Standard Chartered Bank lost 96% of its total capital.

If the international gold price falls by ten more points and falls below 590 points, Standard Chartered Bank will lose 10 million pounds, and Standard Chartered Bank’s total capital will be directly in deficit.

So as long as the Bank of England’s Bank of England is followed, the latter will directly intervene, prohibiting Standard Chartered Bank from engaging in trading activities and forcibly applying for asset liquidation.

Looking at the situation now, the Royal Bank of Scotland is a little better and will not go bankrupt.

But Standard Chartered Bank's risk is greater!

In fact, Standard Chartered Bank should be fortunate that the depreciation of the US dollar has caused the relative appreciation of the British pound to 2.29 points.

If it was last year, the pound/dollar exchange rate was 1.92, then when the international gold price fell below 600 points, Standard Chartered Bank would be 100% bankrupt, and even the Royal Bank of Scotland, which seemed safe at this time, would also go bankrupt!

At that time, it will definitely cause an earthquake in the UK and even the European financial industry.

But even in this situation, the management of Standard Chartered Bank and Royal Bank of Scotland must be frightened for fear that the international gold price will continue to plummet.

If one is not good then they will all be blown up.

The investment is right, you can make a lot of money, but if the investment fails, you have to bear the consequences of the investment failure.

"If you do this, you might bankrupt Standard Chartered Bank..."

A thought flashed through Xia Yu's mind.

Then his thinking diverged, and he thought of the case of the symbolic acquisition of Bahrain Bank by the Dutch International Group by one pound in his previous life. His heart was a little moved.

Fortunately, reason dispelled his thoughts in time.

If Standard Chartered Bank really went bankrupt, it would not be a good thing for him, because then he would not have his turn to pick up the corpse.

After all, this is only an abrupt investment bankruptcy, not bankruptcy due to management or other factors, as long as the injection of capital can revive the bank and turn it back into a high-quality bank.

But even if the Standard Chartered Bank is not bankrupted, this news will be a handle. If it is used well, it can coerce the senior management and shareholders of Standard Chartered Bank into agreeing to sell the shares to him at a low price, and they will absolutely not dare to speak out.

Otherwise, the one bad thing is that the stock price of Standard Chartered Bank has dropped to the bottom due to thunderstorms, and they will suffer greater losses.

"It seems that the advantage this time is greater, we can't use a similar approach to Chiba Bank."

"Not only can't take the initiative to expose it, but we have to find a way to cover the covers for Standard Chartered Bank and Royal Bank of Scotland! In order to achieve private transactions!"

Thinking of this, Xia Yu told George Berkeley: "George, be careful not to divulge these two news. Continue to wait for the price of gold to fall, and after it drops to 600 points, you will contact the shareholders of Standard Chartered Bank and Royal Bank of Scotland. Forcing them to sell us their equity at a low price."

"If it succeeds this time, the two-year plan will be completed ahead of schedule!"

George Berkeley thinks the same way. Although doing so is sinister, it is in their best interest, saving money and reducing difficulty.

In order not to be thundered, the shareholders of the two banks will sell their shares at a low price while holding their noses, and they have to take the initiative to help solve the trouble that the government may interfere.

George Berkeley nodded confidently and promised: "Boss, don't worry, I know what to do. I will try my best to acquire the two banks in its entirety."

The corner of Xia Yu's mouth raised slightly, and he nodded slightly and said, "Well! I'm waiting for your good news!"

Elena, who had been sitting quietly next to her, watched Xia Yu's gestures and decided the fate of the two banks, and a blur of vision flashed in her eyes.

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