Chapter 2281 Handing over the knife
He Chaolingβs statement that short selling may fail is not groundless.
Financial investment does not account for a high proportion of First Republic Bank's total assets, and it did not expand blindly during the period of CDO expansion.
Its non-performing asset ratio is only 0.06%, which can even be called the bank with the lowest non-performing asset ratio among all Chinese banks.
Compared with Kametani Bank and Barry Bank, banks that are crazy about subprime mortgages, the assets of First Republic Bank include 32 billion U.S. dollars in investment securities only accounting for 16% of the total assets.
Loans worth 162.3 billion yuan accounted for 82%.
The vast majority of these are prime real estate and construction loans.
How high quality 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?
"Business and other" loans accounted for only 18% of total loans.
"Will it fail?" Chen Mo asked with a smile.
He Chaoling said confidently: "Since the establishment of First Republic Bank, a total of 455 billion U.S. dollars in loans have been issued, with only 0.08% net losses and write-offs. This achievement is among the best among 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 Iβm 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, but one of their own."
After speaking, Chen Mo pointed to the Mogen Chase Bank logo 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
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Smiled: "Small banks have fallen, and big banks have been full. Mogen Chase is also having a hard time now. It was directed by the foundation to subsidize too much money.
It also needs to replenish blood and restore vitality.
And First Republic Bank has so many high-quality assets, do you think Morgan Chase will let this opportunity pass? "
He Chaoling: "But the foundation...is it willing?"
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. Does Mogen Chase still dare to short it secretly?"
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 at the end of March 2008, the deposit size of First Republic Bank had dropped to 104.5 billion yuan.
Compared with the 176.4 billion Hegemony currency at the end of 2007, it dropped by a full 72 billion Hegemony currency.
This is the result of adding the 30 billion national currency bailout deposits provided by 11 banks.
In other words, if 11 banks like Mogen Chase hadnβt come to the rescue, the amount of deposits lost in the first quarter of this year alone would have been as high as 102 billion Chinese currency!
So during what time period was this money lost?
One month ago, when Chen Mo shorted Turtle Valley Bank, First Republic Bank's deposits were still 173.5 billion in national currency.
This means that, excluding the 30 billion hegemonic currency that was rescued, only in the area that Chen Mo shorted
In just one month, First Republic Bank lost an astonishing 99 billion in deposits! ! !
In other words, even before Chen Mo targeted First Republic Bank, its deposits had already suffered 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. .π .
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 in its own right, with banking and investment banking businesses.
In order to save the hegemonic country and let it suffer losses, it is obviously not something Jimmy can accept.
"It would be great if we could swallow up First Republic Bank."
Jimmy sighed.
Originally, when the Kongshen camp was shorting, Jimmy was already ready to take action. Who would have thought that Solomon would suddenly make such a move.
He didn't dare not give Solomon face. After all, Mogen Chase owned shares in the Federal Reserve Bank 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, Hafize publicly accepted an interview with the media and said energetically: "When we open today, we will definitely give the Kongshen camp a fatal blow!"
"I believe that with the help of 11 banks and officials, First Republic Bank will definitely defeat its enemies and return to the top!!!"
After the stock market opens.
Although the share price of First Republic Bank did not surge, it also rose steadily, which was not a slap in the face of Hafiz.
About an hour after the opening, something strange happened!
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The share price of First Republic Bank suddenly began to plummet!
-10%
-20%
-30%!
The share price that rose a few days ago fell again in an instant!
Hafiz was dumbfounded: "This...what's going on?"
The secretary hurried over and whispered: "President, after our financial report was released, the media seized on the loss of deposits and made a big fuss about it.
Now the whole world knows that we lost nearly 100 billion in deposits in one month, which is a serious negative behavior.
Just now, the Air God camp attacked again, and this time it seems to be fighting with us, bullets are fired like they don't cost money!"
"Also, a large number of customers have appeared in the bank now, claiming to take their money away!"
Hafize was confused and said: "Another customer? Impossible, I have already greeted all the high-quality big customers of our bank, and they promised I will not come to withdraw money within a month. "
The secretary shook his head: "The people who came are not those high-quality big customers, but some small customers. The deposits are not much, but there are many people, so it can't cause a run. "
Hafize was even more confused: "Big customers didn't come, but a bunch of small customers came? What the hell is this... OK, I know, you let people lend them money, anyway, it won't cause a run. "
"Also let the traders just do defense, and get through 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 to continue shorting? "
However, the secretary had just left for less than two minutes and returned from outside.
"Why are you back?"
Hafize frowned.
"Bank...President...People from the FDIC (Federal Deposit Insurance Corporation of the United States) are here, saying that our bank is too risky and they want to take over us completely! "
