Chapter 571 Withdrawing Funds

The British government's acceptance of Standard Chartered Bank's acquisition of Northrock Bank also shows that Barron's proposal was accepted by Finance Minister Darling.

They will allocate 50 billion pounds of funds from the Bank of England and related funds managed by the government, of which 25 billion pounds will be invested in DS Group's specially established custody account supervised by the Ministry of Finance and the Financial Services Authority. This account will be operated by DS Group's newly established British Fortune Time Fund (BFT Fund).

According to the non-public agreement signed by DS Group and the British government, they will use the assets held by DS Holdings Company (Cavendish Trust Fund) as collateral and need to return it to the relevant parties from this fund within 3 years. 50 billion pounds and corresponding interest from banks and institutions. If the funds in the British Fortune Era Fund's account are insufficient to pay the amount, the stocks held by the Cavendish Trust Fund will be sold to make up for it.

The other 25 billion pounds of the 50 billion pounds was used to purchase convertible bonds of Standard Chartered Bank in the name of the Cavendish Trust Fund, and then Standard Chartered Bank used its own funds to pay for the purchase of Northron Rock. Bank shares, 500 million pounds of funds for privatization (in fact, because DS Group has previously purchased some shares of Northrock Bank at a low price, these shares will replace some of the newly issued shares of Standard Chartered Bank) and 25 billion pounds In addition to the interest portion, 25 billion pounds of funds obtained from the sale of convertible bonds to the Cavendish Trust were returned to the Bank of England.

When circumstances are appropriate in the future, the Cavendish Trust will exercise its power to convert ordinary shares into shares of the £25 billion Standard Chartered Bank convertible bonds.

After completing the acquisition of Northrock Bank, the name Northrock will no longer be used.

Standard Chartered Bank will reorganize Northen Rock Bank and integrate their business into Standard Chartered Bank's own business. In this way, they will also greatly increase their business in the UK-previously, Standard Chartered Bank's The main business is concentrated in emerging markets such as Asia, Africa and South America. The British business is very small. If it is not headquartered in London, it cannot be called a British bank.

As for the original management of Northron Rock Bank, all of them were purged, and new managers were sent from Standard Chartered Bank. After that, the British branch of Standard Chartered Bank will adopt a more stable operating style. They will be as radical as the previous Northen Rock Bank. Their current priority is to sort out the business of North Rock Bank and put it on the right track.

…

At this time, after celebrating their 28th birthday, Barron and Earl Bute's families went to the United States together.

Earlier, after Countess Chris gave birth to Barron's second child, he promised her to take her out for some fun.

Taking advantage of this time, Earl Bute was also going to visit his sister Jenny Bute.

"Didn't John come?"

Lord Bute asked after meeting his sister Jenny.

After hearing her brother's question, Jenny Butt looked away from Barron. She picked up little Daniel, who was less than three months old, and said to her brother angrily:

"Him? Ever since I became the chairman of Sinclair Group, I have been busy with endless things every day. I'm too bored there, so I might as well come to New York to relax."

Hearing his sister's complaint, Ian Butt shrugged and said:

"You have been married for so long, you can have a child first, so it won't be so boring..."

He looked around at his children for a week:

"Having a child will make the home much warmer."

"Wow, Ian, you're starting to sound more and more like dad, like an old man."

She didn't give her brother any face, she took Chris's hand and said:

"Women are not just tools for reproduction. Dear Chris, how about we go out for a walk together. By the way, Barron, didn't you just say you wanted to go out? You just happened to take us along..."

Barron had no intention of intervening in their conversation, but after hearing Jenny's words, he glanced at Bonnie and said:

"You guys should go relax together, I'm just on the way."

He was going to the New York branch of DS Group, and he happened to have an appointment with Lloyd, the CEO of Goldman Sachs Group, to meet there.

It can be said that this time the subprime mortgage crisis caused heavy losses to all the five major investment banks on Wall Street, and Goldman Sachs Group suffered the least losses among them.

This also comes from the ancestral skills of Goldman Sachs Group - a soft body and ability to adapt to the wind.

After seeing that the situation was not good, they immediately changed their camp. Not only did they sell the CDO bonds in their hands immediately, but they also decisively withdrew the gambling agreement with the Black Swan Fund and gave up and left the market.

Next, they changed hands and started shorting. It seemed that they could not only erase their previous losses, but also make a small profit.

The situation similar to that of Goldman Sachs is Morgan Stanley. They also made prompt disposals. Although there was some loss, it can be said to be very minor compared to the other three investment banks.

"Your Highness the Duke, you should know that this time the subprime mortgage crisis has caused us a lot of losses. The previously announced third quarter revenue has declined compared to last year. In the fourth quarter, we need a dazzling report. …”

Lloyd didn't waste any more words and got straight to the point. He directly stated his purpose, which was to hope that the Zeuss Fund, which the two parties cooperated with, could pay dividends in the fourth quarter. This would ensure that after the increase in dividend income, Goldman Sachs Group's overall profit in the fourth quarter. It's very beautiful.

Initially, DS Group and Goldman Sachs Group co-founded Zeuss Investment Company at a ratio of 6:4. Among them, Zeuss Fund specialized in high-frequency trading in the American market.

After this fund performed well and achieved very good returns, both parties subsequently increased their investment in it. Currently, the total size of the Zeuss Fund has exceeded US$3.5 billion!

According to Lloyd's idea, he hopes to use 2.5 billion US dollars to distribute dividends - because the U.S. stock market has continued to decline since October, and he believes that it will affect the rate of return of the Zeuss fund, so it is better to temporarily distribute dividends in order to Help Goldman Sachs Group get a beautiful financial report in the fourth quarter of this year, so that their stock price will perform strongly.

Barron naturally understands that for Lloyd, on the one hand, he hopes that Goldman Sachs’ performance will be good. The most important thing is that his personal income, which accounts for a large proportion of dividends and equity incentives, is the same as Goldman Sachs’ performance. Relatedly, under circumstances like this year, he naturally hopes to use some methods to achieve overall performance.

"There is no problem. If Goldman Sachs needs this income, then Zeuss Fund can distribute your part as dividends. However, for the part of DS Group, we do not have a better investment target for the time being, and we will still choose to stay." In the Zeuss Fund..."

Barron's words surprised Lloyd, and he also knew that if this was the case, DS Group's investment proportion in the Zeuss Fund would be much higher than that of Goldman Sachs Group...

But after thinking for a moment, he nodded:

"Just do it."