Chapter 636: Guarding Order

It can be said that it is this time and that time.

In Barron's earlier days, because he was limited by funds, but had previous experience, he knew which companies would develop better in the future, so in the form of Mars Fund, Global Industrial Investment Fund and Caesar Fund, Use external funds to complete your own layout.

It can be said that this method indeed accelerated his development and allowed Barron to complete some layouts early.

But now, especially after this subprime mortgage crisis, the scale of funds he controls has become extremely large, and he has completed or is about to complete the layout of many important areas...

So the funds of the wealthy countries in the Middle East, even if, as Balder said, the scale exceeds tens of billions...

For Barron, well, it can't be said that it doesn't mean much, it can only be said that it is not too necessary.

Moreover, in order to attract external funds, Barron's not only had a model of directly sharing profits in proportion to the first phase of the Global Industrial Investment Fund, but also a fixed income model with a yield as high as 10%-15%...

But now, it is definitely impossible - you know, the "Madoff case" as a Ponzi scheme, the average return rate given over the years is only more than 10%.

Or why did the Kuwait Investment Authority and the Saudi Public Investment Fund want to withdraw their investments in the first phase of the GII Fund after the "Madoff case" broke out...

It can only be said that Barron’s initial high return conditions for some funds of the DS Group to attract external funds cannot be said to be exactly the same as those of Madoff, but they are very close...

Not only the sovereign wealth funds of these two Middle Eastern tycoons, but also some individual investors in the Mars fund want to redeem their shares in the fund because of this concern.

It’s just that when the Madoff case broke out, it was already October, and the investment and redemption window for the Mars fund in September had passed...

But Barron's didn't pay particular attention to this. For this reason, the Mars Fund issued a special announcement to each investor, saying that in order to allay investors' concerns and build investor confidence, their foundation will within the next half month, The window for fund redemption has been opened separately again. Users who wish to redeem can do so within this window.

Moreover, such a special case is only done once, and will only be carried out when the window is open. At other times, the corresponding fees will need to be deducted.

After the Mars fund opened the redemption window again, the funds applied for redemption accounted for about 10% of the total funds, which is already a relatively high proportion. As for the remaining investors, they are probably waiting and watching. Among them, if the Mars fund delays in the payment of funds during this redemption, it is estimated that it will encounter a run...

However, although this proportion of redemptions has an impact on the investment of Mars funds, it is not significant - after all, during this stage, they made a round of short selling on gold prices and oil price futures, which can be said to have made huge profits, but many did not carry out balancing. The warehouse is just a floating profit.

But now that they are redeemed, of course these funds will not be able to enjoy this part of the profit, but relatively speaking, compared with the funds they invested in the Mars fund, the profits are already huge, almost using the new funds that were just added to the fund in September. Investment, as well as closing a small portion of the futures order, is sufficient for redemption.

This calm and timely payment also dispelled investors' doubts about DS Group.

Moreover, although the funds under DS Group look somewhat similar to those of Madoff in terms of early fixed-rate products, there are still differences between the two, and they are not small.

After all, it does not include all stock investments and securities and futures investments, but on the surface, DS Group owns many companies - O2 Telecom, SEM Group, Argos Retail Group, United Energy Group, LOMX Group and Standard Chartered Merrill Lynch Etc., although they were somewhat affected by the subprime mortgage crisis, their operating conditions are still relatively good.

This is unlike the Madoff Company. They said they invested their funds in financial securities, but where exactly did they invest...

But it has never been made public for sure.

…

"Indeed, Madoff Company has brought us a lot of trouble. It can be said that it makes things worse..."

Slowly exhaling a puff of cigar smoke, Jamie Dimon, chairman and CEO of JPMorgan Chase, said to Barron with a bit of irritation:

"To this end, we also need to appease some investors. Because of Madoff, many funds have begun to be cautious. This is not a good thing in the current situation. The most important thing in the market is confidence."

His words are somewhat similar to those of Paulson, the Treasury Secretary of the United States Paulson...

Barron had just met with Paulson the day before.

"Your Highness the Duke, I heard..."

Jamie Dimon looked at Barron:

"You know, there are always some rumors in the circle, true or false, but many people say you will make big moves."

"That's not surprising, Mr. Damon."

Whether it's cigarettes or cigars, Barron has no interest in them - he doesn't like anything that can be addictive. After all, money and power already require willpower to dispel the temptation.

Barron didn’t give too specific an answer to the rumors Jamie Dimon had heard, or his own speculation.

Although the British Fortune Era (BFT) Fund has become one of the major shareholders of JPMorgan Chase, many times, it is not rational to expose the target too early.

"You know, we only manage some funds. Of course, the decision needs to be made by me, but in fact, to some extent, we are all the same, so I always position myself as a wealth manager, or... a steward, whether for God or for others, but wealth cannot belong to an individual after all, right?"

"I agree very much, Your Highness, wealth exists because of order, and now we need to maintain order. As for the growth of wealth, this is an additional reward based on our protection of order."

Jamie Dimon is right, JPMorgan Chase did get a reward - it can be said that they are the bank with the most obvious expansion in size during the subprime mortgage crisis.

Whether it is Bear Stearns or Washington Mutual Bank, JPMorgan Chase was the most proactive bank to rescue them at the beginning.

These actions all came from Jamie Dimon's leadership, but earlier, they came from the Morgan family's protection of the American financial order, which also brought JPMorgan Chase rich rewards.

It can be said that except for JPMorgan Chase, anyone... who wants to complete the merger of Bear Stearns and Washington Mutual Bank will find it difficult to obtain the same conditions as JPMorgan Chase. In terms of government support, the rewards JPMorgan Chase has received are indeed enviable.

"But in addition to this, I actually got more accurate information, Your Highness..."

Jamie Dimon showed friendliness to Barron:

"We are already friends, and perhaps the relationship can be closer. If you are interested in some of the businesses of the American Machinery Group, first of all, there is no competition with us."