Chapter 2282 Lightspeed takeover, lightspeed bankruptcy

The Federal Deposit Insurance Corporation of the Hegemony is an independent financial institution of the Hegemony government. Its main purpose is to insure the deposits of all legal banks, 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 full, and then force it to go through the bankruptcy process or liquidate its assets and let other financial institutions acquire it.

The reason why the FDIC suddenly appeared was because Jimmy, the CEO of Mogen Chase, found its head Martin Grunberg and promised a lot of benefits.

As for what the benefits are, that is a secret between the two.

In short, money makes the devil push the mill.

And 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 the left hand to the right hand."

Martin thought about it, anyway, the final result is that Mogen Chase will acquire the First Republic Bank. The foundation can see what is going on at a glance, and he is also following the legal process.

No matter what, the responsibility will not fall on him.

As a high-end worker, he can get so many benefits. Even if he is fired in the end, it is worth it!

Let's do it!

So Martin and his men came to the First Republic Bank in a hurry, and directly took out his credentials to ask to take over the First Republic Bank.

Hafize saw the FDIC people coming, and he was not feeling well.

"No, Martin, what do you mean? There is obviously no problem with our bank, why are you taking over?" Hafize said speechlessly.

"No problem yet? Look at the door of your bank, there are thousands of depositors gathered! How big is the risk of bank run?" Martin said righteously.

"But they are all small depositors, and they don't have much deposits in total. There is no risk of bank run!" Hafize said angrily.

"You said small depositors are small depositors? Why did I hear that they are all big depositors? To put it another way, even if they are small depositors, your company's stock price has plummeted again, isn't it true?"

Martin questioned.

"That is the result of Chen Mo's forced money to short sell. For banks like us that have no risk of bank run, it is only short-term and temporary. It will recover after a while. You know it!" Hafize said anxiously.

"Recovery? Who knows? We at FDIC don't believe in the future, we only focus on the present.

Let's not talk about other things. Your financial report shows that nearly 1,000 hegemony dollars of deposits have been lost in one month. Is this true?"

Martin asked again.

"This..."

Hafize stuttered for a long time, and then said helplessly: "The subprime mortgage crisis broke out, and banks were shorted and bankrupted by Chen Mo one after another. Depositors lack confidence. It's not just me who lost deposits. The overall environment is not good. Everyone is like this. What can I do?"

"Oh, why is the overall environment bad wherever you go? Are you a destroyer of the overall environment?"

Martin waved his hand: "Don't say anything. The First Republic Bank is now taken over by the FDIC. This is a notice, not a request! Please hand over immediately!"

Hafize smelled a strong smell of conspiracy.

This matter is too strange.

The sudden stock price plummeted, a lot of small depositors suddenly came to build momentum, and suddenly the FDIC took over...

"No, you must go to Solomon to report!"

That day.

FDIC quickly announced the bankruptcy of the First Republic Bank!

At the same time, according to the law, the First Republic Bank is provided with 13 billion Baguo dollars of deposit insurance.

How does this insurance come from?

It is probably that each depositor is capped at 250,000 Baguo dollars of bottom insurance. The part above 250,000... Sorry, then no compensation will be paid.

After that, the FDIC quickly announced that the First Republic Bank would sell Mogen Chase for 10.6 billion Baguo dollars!

Why Mogen Chase instead of other banks?

Because Mogen Chase contributed 5 billion of the 30 billion deposits to assist the First Republic Bank.

According to the law, Mogen Chase has the priority to acquire the First Republic Bank.

After the acquisition, Mogen Chase will assume all deposits and most assets.

The deposits here are about 92 billion Baguo dollars, including 30 billion Baguo dollars previously provided by major banks.

These deposits will be redeemed normally after the merger.

And most of the assets, specifically, include loans of about 173 billion Baguo dollars and securities of about 30 billion Baguo dollars.

For depositor loans, the FDIC will provide a loss-sharing agreement and a 5-year fixed-rate financing support of about 50 billion Ba Guo Yuan.

In other words, this acquisition does not even require the use of Mogen Chase's own money!

The FDIC paid 50 billion, 500 minus 106, and Mogen Chase got a loan of 39.4 billion Ba Guo Yuan for free.

What is even more devastating is that this is not a traditional merger between the two companies.

So Mogen Chase will not and does not need to bear the corporate debt of First Republic Bank!

Although Mogen Chase claims that it will incur restructuring costs of 2 billion Ba Guo Yuan in the next few months.

However, after the transaction, Mogen Chase immediately obtained 2.6 billion Ba Guo Yuan after-tax income, and in the future stock market, it is expected to generate billions of Ba Guo Yuan income every year.

This is only the income from securities, and does not include the income from the high-quality customer resources taken over by Mogen Chase.

You should know that the deposits of these high-quality customers are as high as 92 billion Hegemony currency! ! !

To sum up, JPMorgan Chase spent 10.6 billion to buy the First Republic Bank, but it did not have to bear the debt of the First Republic Bank, and it also took the 92 billion deposits of the First Republic Bank for free.

The FDIC paid 50 billion to compensate the depositors to help Morgan Chase clean up its mess.

So, a deal that only hurt shareholders and creditors was reached.

When the outside world learned of this news, everyone was dumbfounded!

Especially those who know the business, they feel that their three views are about to collapse!

Before, everyone was human, and a bank with such good assets could definitely be saved with a little help.

Even when the FDIC just announced the takeover of the First Republic Bank, everyone felt that the First Republic Bank still had hope.

After the investigation, the First Republic Bank should be released and continue to operate.

The result was that the FDIC quickly announced its bankruptcy!

It was like a person who was not completely dead, but was dragged to the crematorium and burned, and the estate was divided up at the speed of light.

He Chaoling was upset after hearing the news.

If even a bank as high-quality as First Republic Bank, which did nothing wrong, could go bankrupt, then what other banks in the hegemony country could not go bankrupt?

This is really like Chen Mo handed over a knife, and the opponent took the knife and stabbed his own people to death!

"The subprime mortgage crisis has already erupted to this extent, and inflation is almost forcing the people of the hegemony country to not be able to afford to eat, and these capitalists are still thinking about robbing the hegemony!

Aren't they afraid that the Great Depression will come and force the bottom of the hegemony country to rebel?"