Chapter 597 Bankruptcy

Barron's first child, Jennifer, is already four years old. She has been attending the best "kindergarten" nearby for two years and has made many good friends. The parents of these children are either rich or noble.

"Kindergartens" in the United States can be divided into daycare and preschool. In fact, preschool is more similar to the concept of "kindergarten" in China, while daycare mainly provides care for children before the age of three - even the earliest children can be sent to daycare when they are six weeks old, which is often when parents need to go to work and there is no one to take care of them.

But like those rich people, they naturally will not send their children to daycare early, and they will directly hire nannies to take care of them.

The reason why Jennifer went to kindergarten is that Rebecca hopes to cultivate Jennifer's ability to interact with her peers.

Jennifer has Barron's iconic light golden hair. The little girl who is just four years old still has baby fat on her face, looking like a cute little angel.

This time in America, Barron will also take a few days to accompany her more, which also makes Jennifer very happy.

...

In fact, this time, whether it is the crisis of Fannie Mae and Freddie Mac, or the near-collapse of IndyMac, the time of occurrence is earlier than that of Barron's previous life.

Barron had noticed this situation in the earlier Bear Stearns incident.

After all, the subprime mortgage crisis is indeed too famous, and it has also had a great impact on the subsequent global finance. It can be said that practitioners in the financial industry must understand this crisis.

In his previous life, Barron had carefully studied the subprime mortgage crisis and read a lot of relevant information. He can recite the time of some iconic events in this subprime mortgage crisis by heart.

The previous Bear Stearns incident was only about ten days earlier than the original time and space...

But when it comes to the "two houses" and IndyMac Bank, it is more than a month earlier than the timeline of the original time and space in Barron's impression!

After the analysis, Barron also had a general guess. This should be the impact caused by the massive participation of the funds controlled by Barron in the subprime mortgage crisis...

For example, in the initial subprime mortgage bond CDO and swap bond CDS, the Black Swan Fund occupied a large share of short selling, and also had additional betting agreements with some large banks.

In addition to the short selling behavior in other markets, Barron's participation can be said to have played a role in fueling the subprime mortgage crisis...

You know, the subprime mortgage bond market is close to the root of the subprime mortgage crisis. The subsequent finance, stock market and then the continuation to the real economy will gradually expand the destructive power.

Everyone knows the so-called "butterfly effect". When Barron is reborn and participates in global capital investment, his behavior will have more or less impact.

Of course, the operation of the world has its inertia, and his individual power is limited, so this impact can be ignored at the beginning.

But as the funds and resources in Barron's hands expand like a snowball, the wind volume that can be brought by the wings of his "butterfly" is getting stronger and stronger.

Although it will not cause the "wheel of history" to deviate too much, at least many details have changed.

Just like in this subprime mortgage crisis, his strong participation has begun to accelerate the progress of the subprime mortgage crisis.

Barron understands that one day, the data of securities investment in his memory will be completely unrecognizable, but the general trend is still worth referring to.

At the same time, he is also preparing for the arrival of that day, such as the network of relationships and intelligence networks he has been weaving, as well as the layout of certain industries.

...

"Compared to the overall acquisition of IndyMac Bank now, we are more willing to acquire part of their business..."

Davis, the president of Standard Chartered Bank who came to Los Angeles, will be responsible for the subsequent acquisition of IndyMac Bank. After studying the detailed information of this bank, he said to Barron.

Prior to this, Barron had asked his think tank team to conduct a detailed investigation of some banks in the United States and mastered a lot of information, including IndyMac Bank.

Before the crisis, IndyMac Bank had an asset size of about 32 billion US dollars, but the bank's main business was to securitize real estate mortgages - it is no wonder that they fell into such a situation during this subprime mortgage crisis.

According to their analysis and contacts with IndyMac Bank and relevant regulatory agencies, if Standard Chartered Bank wants to take over IndyMac Bank at this time, it will need to put out at least 5 billion US dollars in funds.

A considerable part of this is to help IndyMac Bank repay part of its debts and provide it with liquidity.

But the problem is that Standard Chartered Bank does not need a complete IndyMac Bank, but the bank's branches and depositors to improve their banking network in the United States.

The American Express Bank they acquired before was limited in scale and did not include the core credit card business of the American Express Group. It only improved the foreign exchange settlement business of Standard Chartered Bank.

If the assets of IndyMac Bank's branches and depositors can be acquired, Standard Chartered Bank's business in the United States will be more complete, and it will also be able to penetrate into the U.S. banking system.

After all, under the current situation, it is not impossible to take over IndyMac Bank with US$5 billion, but it is not cost-effective.

And with the full outbreak of the subprime mortgage crisis, I believe there will be more "cost-effective" acquisition targets. At this time, it is better to be more careful.

In terms of such specific matters, Barron generally respects the opinions of professionals very much. Therefore, since Davis's view is this, he handed over the acquisition of IndyMac Bank to the other party.

Just like Barron said to Schwarzenegger, he can take over those troubles, but only if he can bring benefits to himself.

He is not here to do charity...

If a buyer cannot be found as soon as possible, the collapse of IndyMac Bank will be irreversible, and Standard Chartered Bank is the only buyer currently in front of them...

Standard Chartered is in a strong position and therefore in no rush.

But IndyMac couldn't stand it, after their offer for sale was declined by Standard Chartered Bank.

Three days later, IndyMac Bank declared bankruptcy and was taken over by the Federal Deposit Insurance Corporation (FDIC).

Later, if Standard Chartered Bank wants to acquire some of the assets of IndyMac Bank, it will need to deal with the FDIC.