Chapter 2282: Lightspeed Takeover, Lightspeed Bankruptcy
The Overlord Federal Deposit Insurance Corporation is an independent financial institution of the Overlord government. Its main purpose is to insure the deposits of all legal banks, as well as take over banks that are about to go bankrupt, and promote the healthy development of banking business.
In short, as long as the FDIC determines that a bank is going to go bankrupt, it can take over the bank in its entirety and force it to go through the bankruptcy process or liquidate its assets and allow other financial institutions to acquire it.
The reason why fdic suddenly appeared is because Mogen Chase’s CEO Jimmy found its director Martin Grunberg and promised a lot of benefits.
As for what the benefit is, it is a secret between the two of them.
All in all, money can make a difference.
Jimmy also told Martin: "Don't be afraid of the foundation. Our company also has shares in the foundation. Swallowing the First Republic Bank is nothing more than transferring assets from one hand to the other."
When Martin thought about it, the final result was that Mogen Chase merged with First Republic Bank. The foundation could see what was going on at a glance, and he followed the process legally.
No matter what happens, the responsibility cannot fall on him.
As a high-end worker, being able to get so many benefits, even if you are fired in the end, it is worth it!
It's done!
So Martin came to the First Republic Bank with a crowd, and directly took out his ID and asked to take over the First Republic Bank.
When Hafize saw the fdic people coming, he felt bad.
"No, Martin, what do you mean? Our bank obviously has no problem, why are you taking over it?" Hafize said speechlessly.
"No problem? Look at the door of your bank. There are thousands of depositors gathered! How big is the risk of a run?" Martin said confidently.
"But they are all small depositors, and their total deposits are not that much. There is no risk of a bank run!" Hafiz said angrily.
"You said they are small depositors, so they are small depositors? Why did I hear that they are all big depositors? Even if they are small depositors, your company's stock price has plummeted again, isn't that a fact?"
Martin demanded.
"That is the result of Chen Mo's forced investment in short selling. For a bank like ours that has no risk of bank runs, it is only short-term and temporary. It will recover after a while, you know that!" Hafiz said anxiously.
"Recovery? Who knows? We at FDI don't believe in the future, we only focus on the present.
Let's not talk about other things. Your financial report shows that you lost nearly 1 billion in deposits in one month. Is this true?"
Martin questioned again.
"This……"
Hafiz stuttered for a long time before he said helplessly, "The subprime mortgage crisis broke out, and banks were shorted and bankrupted by Chen Mo one after another. Depositors lack confidence, and I am not the only one losing deposits. The overall environment is bad, and everyone is like this. What can I do?"
"Oh, why is it that wherever you go, the environment is not good? Are you a destroyer of the environment?"
Martin waved his hand: "Don't say anything. First Republic Bank is now taken over by FDI. This is a notice, not a request! Please hand over immediately!"
Hafizeh smelled a strong smell of conspiracy.
This matter is too strange.
Suddenly the stock price plummeted, suddenly a lot of small savers came to build momentum, and suddenly the FDI came to take over...
"No, we must report to Solomon!"
The day.
FDI quickly announced the bankruptcy of First Republic Bank!
At the same time, in accordance with legal regulations, we will provide First Republic Bank with deposit insurance worth 130 billion U.S. dollars.
How did this insurance come about?
It's probably the underpinning insurance with a maximum cap of 25 Hegemon currency for each depositor. The portion above 25... Sorry, no compensation will be paid.
After that, FDI quickly announced that First Republic Bank would sell a Magic Root Chase for 106 billion hegemonic coins!
Why Mogen Chase and not other banks?
Because out of the 300 billion deposits that it used to aid the First Republic Bank, Mogen Chase contributed 50 billion.
According to legal provisions, Mogen Chase has priority in acquiring First Republic Bank.
After the acquisition, Mogen Chase will assume all deposits and most of the assets.
The deposits here are approximately 920 billion Hegemony currency, including the 300 billion Hegemony currency previously provided by major banks.
These deposits will be redeemed normally after the merger.
Most of the assets include loans of about 1730 billion national currency and securities of about 300 billion national currency.
For depositor loans, FDIC will provide a loss-sharing agreement and a five-year fixed-rate financing support of approximately 500 billion U.S. dollars.
To put it bluntly, you don’t even need to use your own money to acquire Mogen Chase this time!
FDI paid 500 billion, 500 minus 106, and Mogen Chase got a loan of 394 billion in national currency in vain.
What’s even more shocking is that this is not a traditional merger and acquisition between two companies.
Therefore, Mogen Chase will not and does not need to assume the corporate debt of First Republic Bank!
Although Mogen Chase claims that it will incur restructuring costs of 20 billion Ba Guo currency in the next few months.
However, after the transaction, Mogen Chase immediately obtained an after-tax profit of 26 billion Baguo dollars, and in the future stock market, it is expected to generate billions of Baguo dollars in revenue every year.
This is only the income from securities, and does not include the income from high-quality customer resources taken over by Mogen Chase.
You know, the deposits of these high-quality customers are as high as 920 billion national currency! ! !
To sum up, Mogen Chase spent 106 billion to buy First Republic Bank. Not only did it not have to bear the debt of First Republic Bank, it also used First Republic Bank's 920 billion deposits in vain.
FDI paid out 500 billion in compensation to depositors, wiping Mogen Chase’s butt.
Thus, a deal was struck in which only shareholders and creditors were hurt.
When the outside world learned the news, everyone was dumbfounded!
Especially those who are knowledgeable about the business, they feel like their three views are about to collapse!
Everyone was human before, and a bank with such excellent assets could definitely be saved with just a little help.
Even when FDIC just announced its takeover of First Republic Bank, everyone felt that there was still hope for First Republic Bank.
Once the investigation is clear, First Republic Bank can be released and continue to operate.
The result was that FDIC quickly announced its bankruptcy!
Before the person was completely dead, he was taken to the crematorium and burned, and his inheritance was divided up at the speed of light.
After hearing the news, He Chaoling felt terrible.
If even a high-quality bank like First Republic Bank that did nothing wrong can go bankrupt, then what other bank in a hegemonic country cannot fail?
This is really like Chen Mo handing a knife to his opponent, and then he takes the knife and stabs his opponent to death!
"The subprime mortgage crisis has already exploded to such an extent, and inflation is almost forcing the common people of the hegemonic country to be unable to afford food, and this group of capitalists are still thinking of robbing their fellow cronies!
Aren't you afraid that the Great Depression will come and force the bottom class of the hegemonic country to rebel? "
