Chapter 2281 Handing the Knife
He Chaoling’s statement that short selling may fail is not groundless.
Financial investments account for a small proportion of First Republic Bank's total assets, and it did not expand blindly during the period of CDO inflation.
Its non-performing asset ratio is only 0.06%, which can even be regarded as the bank with the lowest non-performing asset ratio in the world.
Compared with banks like Kameya Bank and Barry Bank that were frantically engaged in subprime lending, the asset composition of First Republic Bank, with investment securities worth 320 billion U.S. dollars, only accounted for 16% of total assets.
Loans worth 1623 billion yuan accounted for 82%.
The vast majority of these are high-quality real estate and construction loans.
How good is it?
Jobs of Pingguo Company obtained a long-term loan from this bank, and the interest rate was only 1.05%.
Are you worried that Steve Jobs will not repay his debt?
"Commercial and other" loans accounted for only 18% of the total loan amount.
"Will it fail?" Chen Mo asked with a smile.
He Chaoling said confidently: "Since the establishment of First Republic Bank, it has issued a total of 4550 billion U.S. dollars in loans, with only 0.08% net losses and write-offs. This performance is outstanding among all banks in the United States.
As long as it survives this run, First Republic Bank will definitely be able to come back to life. After all, its assets are too high-quality and there is no reason to collapse. "
Chen Mo: "Secretary He, I have to admire your ability in finance. Indeed, according to normal thinking and normal analysis, the possibility of First Republic Bank being rescued is very high.
But do you think I'm the only one who wants First Republic Bank to die?"
He Chaoling was surprised: "Are there any other short sellers?"
Chen Mo shook his head: "It's not other short sellers, it's one of their own."
After saying that, Chen Mo pointed to the logo of Mogan Chase Bank on the computer screen.
He Chaoling's eyes widened and she said in disbelief: "No...it can't be...would Mogen Chase want to kill First Republic Bank?"
Chen Mo smiled: "Small banks fall, big banks eat up. Mogen Chase is not having a good time now, as it has been commanded by the foundation to subsidize too much money.
It also needs to replenish blood and restore vitality.
And the First Republic Bank has so many excellent assets, do you think Mogen Chase will let go of this opportunity?"
He Chaoling: "But will the foundation... agree?"
Chen Mo: "What can you do if you don't want to? First Republic Bank is affiliated with the foundation, but Mogen Chase has only a cooperative relationship with the foundation.
Mogen Chase is also capital, and the first goal of capital must be to serve itself. "
He Chaoling: "But First Republic Bank has come back to life. How dare Mogen Chase secretly short it?"
Chen Mo smiled and shook his head: "Of course I don't dare. At this time, we need to hand over a knife."
This knife was also the last straw for First Republic Bank!
That's First Republic Bank's first-quarter earnings report.
Chen Mo knew that by the end of March 2008, the deposit size of First Republic Bank had dropped to 3 billion British Pounds.
This is a drop of 2007 billion tbn from 1764 billion tbn at the end of 720.
This is the result of adding the 11 billion national currency bailout deposits assisted by 300 banks.
In other words, if the 11 banks including Mogen Chase had not stepped in to rescue them, the amount of deposits lost in the first quarter of this year alone would have been as high as 1020 billion Ba Guo currency!
So in what time period did all this money go out?
One month ago, when Chen Mo shorted Guigu Bank, the deposit size of First Republic Bank was still 1 billion Ba Guo Currency.
This means that, excluding the 300 billion Hegemony currency provided for the rescue, in just one month of Chen Mo's short selling, First Republic Bank lost an astonishing 990 billion Hegemony currency in deposits! ! !
In other words, even before Chen Mo targeted the First Republic Bank, its deposits had already experienced an avalanche.
Once this financial report is released, if Chen Mo continues to exaggerate and promote the report, it will definitely become a sharp sword thrust into the heart of First Republic Bank!
As long as the Magic Root Chase is still capital and has capital attributes, it will definitely help you thrust this sword in!
Mogen Chase Headquarters.
Jimmy Dimon looked at the company's financial report and fell into deep sadness.
Since the beginning of the subprime mortgage crisis, Mogen Chase has been helping the foundation wipe its butt everywhere.
But it is also a financial institution with banking and investment banking businesses.
Jimmy obviously couldn't accept saving the hegemonic country and letting it suffer losses.
"It would be nice if we could just swallow up the First Republic Bank."
Jimmy sighed.
When the Kongshen camp was originally shorting, Jimmy was already ready to take action. Who would have thought that Solomon would suddenly make such a move.
He didn't dare to disrespect Solomon. After all, Mogen Chase had shares in the Federal Reserve and the Foundation.
"Chen Mo, it would be great if you could give me the first knife at this time!"
the next morning.
Before the stock market opened, Hafizar accepted a public interview with the media and said in high spirits: "When we open the market today, we will definitely deal a fatal blow to the Air God camp!"
“I believe that with the help of the 11 banks and officials, First Republic Bank will be able to defeat the enemy and return to the top!!!”
After the stock market opens.
Although the share price of First Republic Bank did not skyrocket, it rose steadily, so it did not slap Hafize in the face.
About an hour after the market opened, something strange happened!
First Republic Bank's stock price suddenly began to plummet!
-10%
-20%
-30%!
The stock price that had risen a few days ago fell again in an instant!
Hafize was dumbfounded: "What...what's going on?"
The secretary hurried over and whispered: "President, after our financial report was released, the media caught on to the loss of deposits and made a big fuss.
Now the whole world knows that we lost nearly 1 billion RMB in deposits in just one month, which is a serious negative behavior.
Just now, the Sky God camp attacked again, and this time they seemed to be determined to fight us to the death, firing bullets at us like they had no money!"
"Also, a large number of customers have appeared in the bank claiming to withdraw their money!"
Hafiz was confused and said, "Another customer? Impossible. I have already informed all the high-quality customers of our bank. They promised me that they would not come to withdraw money within a month."
The secretary shook his head: "The people who came are not those high-quality big customers. They seem to be just some small customers. They don't have much deposits. It's just that there are a lot of people, so it won't cause a run."
Hafiz was even more confused: "The big customers didn't come, but a bunch of small customers came instead? What the hell is this...Okay, I get it, you can ask someone to lend them money, anyway it won't cause a run on the bank."
"Also, let the traders just do defense. After these two days, the stock price will naturally rise. I really don't understand. Our good asset ratio is almost the first in the country. Why is Chen Mo so stubborn and wants to continue shorting?"
However, within two minutes of leaving, the secretary turned back from outside.
"Why are you back?"
Hafize frowned.
"Okay...President...people from FDI (Federal Deposit Insurance Corporation) are here, saying that our bank's risks are too high and they want to take over us completely!"
