v3 Chapter 1390： Wells Fargo was hacked

Chapter 1390

In fact, Wells Fargo does not always have more than 10 billion U.S. dollars in liquidity.

In the past, when you were long the yen, the British pound and other currencies, and short the US dollar, the funds entering the market were basically the capital used.

The main purpose is just to preserve the value of funds.

But this time, I was going to take over the assets of the Mellon Consortium, withdraw the funds in a short period of time, and found other financial companies to cooperate with them through leveraged capital allocation.

It's just that these businesses are relatively secretive, and the partners will not yell everywhere, so as not to discredit their own reputation, no company will dare to cooperate in the future.

Douglas Mather and others are of course not clear.

And over the years, Wells Fargo has acquired so many banks. The assets originally held by the acquired banks have been transferred to the bank’s asset management department.

Xia Yu once discussed Wells Fargo's plan with Peter Lynch, and the latter has always followed and implemented it.

Therefore, over the years, non-performing loans have been dealt with at low prices and stopped losses in a timely manner, and some non-strategic lending cooperation has been recovered after the loan has expired and will not be renewed.

Wells Fargo’s funds mainly provide consumer loans and small loans for individuals, and then provide financial support for companies under the Polaris consortium. .

However, most of the companies in the Polaris Consortium are companies with great potential that Xia Yu has tapped. Under the premise of not conducting mergers and acquisitions, they generally only provide the initial expansion funds, and these companies can form an internal virtuous circle.

Therefore, Wells Fargo Bank put a lot of funds into the asset management department in order to keep the funds from being idle for asset investment gains.

Futures, stocks, bonds, etc. are all involved.

This time, to take over the assets of the Mellon Consortium, Wells Fargo will sell a lot of funds in advance and return a lot of funds.

Regarding these operations, there is of course no need to make public announcements.

Therefore, this made Douglas Mather misjudged that Wells Fargo's capital chain was really tight!

Douglas Mather’s methods are simple, crude and clumsy, but very effective.

That is to let the media question Wells Fargo’s capital chain problem and directly make the matter bigger.

It caused panic among depositors and pushed Wells Fargo to the forefront!

After all, since the bankruptcy of Bowen Square Bank in 1982, there have been bank failures one after another, and the failure of the mainland Illinois Bank, a large bank, pushed the wave of bankruptcy to a peak and triggered a series of bad effects.

Especially in May of this year, the failure of the Maryland State Savings and Credit Agency ultimately resulted in the loss of US$185 million to the Maryland State Deposit Insurance Fund and taxpayers.

Within a month, many banks in Ohio went bankrupt, which directly led to the bankruptcy of the Ohio Deposit Insurance Fund!

The banking situation in other states is also relatively sluggish.

So that in August, the US Federal Savings and Loan Insurance Corporation's original insurance fund of more than 20 billion U.S. dollars, only 4.6 billion U.S. dollars remained.

So much so that Gray, the chairman of the National Federal Savings and Loan Insurance Company, tried to win support for the company's capital injection in Congress!

Therefore, the nerves of many depositors have long been tense.

Early in the morning of November 15th.

The Cleveland News, the largest in the Cleveland region, issued a piece of news questioning Wells Fargo's huge operating risks.

The report is not a rhetoric, but it seems to be justified.

The report also listed a series of recent acquisitions by Wells Fargo, which consumed up to tens of billions of dollars in capital and was very disorderly in asset investment.

Moreover, Wells Fargo, as the third largest bank in the United States, is still unlisted. The author questioned the operating status of Wells Fargo...

The whole article is written in a worried, for the country and the people's tone, which is extremely provocative and contagious.

That morning, after many readers in Cleveland read the newspaper, many people were deceived.

Some relatively cautious depositors or companies began to apply for funding.

A reporter from the newspaper specially took a picture of the crowds at a Wells Fargo branch in Cleveland.

That night, the "Cleveland Evening News" put this photo on the front page and wrote a great book about this phenomenon.

At the same time, some newspapers outside of Ohio also reported the news artificially.

And in order to avoid responsibility as much as possible, these evening papers directly reproduced the "Cleveland News" report very systematically.

This set of little moves is done.

Things got big quickly!

In fact, when the "Cleveland News" reported negative news about Wells Fargo, the heads of branches in the Cleveland area reported the news.

Alman Simmons, president of Wells Fargo Bank, got the news at around 9 a.m. on the 15th.

To this end, Yalman Simmons also specially called his subordinates to discuss the matter.

The result of the discussion at the time was to temporarily allow other branches within Ohio to allocate funds to branches in Cleveland, while controlling matters in the Cleveland area.

Wells Fargo headquarters will not specifically refute rumors and avoid proactively expanding the matter.

Don't have such a big problem, but you have taken the initiative to attract the attention of the media from all over the country.

Alman Simmons knows the pissiness of the media, and sales are the number one. He can't wait for anything to make a big deal. Anyway, the consequences have nothing to do with their media.

Of course, he didn't do nothing.

On the one hand, he kept people watching the development of the situation, and on the other hand, he went to the asset management department, letting the staff of the department intensify the asset sale on the same day, and returned more than 500 million US dollars in funds.

This is the safest way, in the final analysis, working capital is the greatest confidence!

Wait until the banks in the Cleveland area are compulsory to close in the afternoon.

A statistic found that the entire city of Cleveland, including the big town below, had a total of 17 branches, and a total of more than 24 million US dollars in deposits were withdrawn that day!

After seeing this statistic, Alman Simmons looked very serious.

In the evening, after the evening papers in other regions also reprinted the news, Alman Simmons knew that things were out of control!

Arman Simmons asked the think tank to discuss countermeasures.

On the other side, I went directly to the home of Peter Lynch, the chairman of Polaris Capital.

Now the trouble is made clear that it is for the entire consortium, and how to deal with it can only be made at the consortium level!

…

After seven o'clock in the evening, at Peter Lynch's house.

"... Chairman, this is the specific situation."

"Now that it is in the following newspaper, there are already thirty-five states with newspapers covering our negative news."

"Although it is off work now, according to the report from the staff below, there are still many people queuing up to withdraw money at the ATMs of our branches. I estimate that tonight our ATMs will most likely be emptied!"

"This matter, there is a high probability that the Cleveland Consortium did it!"

Alman Simmons reported to Peter Lynch with a solemn expression, and said his guess.

Peter Lynch nodded slightly. After thinking for a long time, he asked, "Yalman, how much liquidity does the bank have now?"

"Although we have consumed a lot of time during this period, every day I ask the asset management department to sell the bonds and stocks previously invested, and a lot of funds are returned."

"As of 6 o'clock tonight, our bank still has US$4.7 billion in liquid funds!"

Alman Simmons reported the situation truthfully.

Peter Lynch frowned slightly, did not speak, picked up the phone on the desk, UU read www. uukanshu.com made two calls in succession.

Those who answered the phone were the presidents of Northern Trust Bank and Toronto-Dominion Bank.

After finishing the call, Peter Lynch said: "For the time being, you can rest assured that the Northern Trust Bank and Toronto-Dominion Bank together can borrow six billion US dollars at any time."

Alman Simmonston breathed a sigh of relief.

There are tens of billions of dollars in working capital, so it's really not persuasive.

It can last a long time, and during this time, he can continue to let the asset management department sell funds.

With this calculation, Wells Fargo’s cash flow should be stable.

"Yalman, you go to stabilize the emotions of the employees of the company. It is too late to deal with tonight. I will think about it tonight and make arrangements tomorrow!" Peter Lynch instructed Alman Simmons.

"Okay, Chairman, then I won't bother you."

"I'm going back."

After that, Alman Simmons got up and left.

And Peter Lynch is planning to figure out a rough response plan before reporting the situation to Xia Yu.

The encrypted phone in his home rang.

As soon as he answered the phone, it was indeed the boss Xia Yu who called and asked about the specific situation.

Peter Lynch truthfully reported the situation to Xia Yu, and then added his own proposal, but Xia Yu directly rejected it.

And Xia Yu put forward a response plan that made Peter Lynch full of enthusiasm.

Or, it should be said that it is a counterattack plan!

Since the Cleveland consortium is behind the scenes, it questioned the tightness of Wells Fargo's capital chain and wanted to make Wells Fargo into a whirlpool.

It is useless to refute rumors and cannot convince everyone, and bank deposits will still be lost.

Then just throw your fist and let everyone see if Wells Fargo really has a tight capital chain!