＜ Twisted White Knight. (1) >
wall street.
Inside the trust company.
“Jack Sr., did you close the shutters properly when you came in? There’s a mob setting up outside.”
“Yeah, I’m not kidding. I came in through the back door.”
“Good job. Your father convened a board meeting. Let’s get in quickly.”
Trust companies urgently convened board meetings.
As soon as a bank run was about to happen, they locked the branch and rushed into the meeting. Trust companies have connections with senior New York officials, so this could take some time.
“We got a notice that the New York Financial Services Agency has removed us from the New York Settlement Network.”
“It seems that official notices including the 10 largest banks in New York have been distributed. They are expressing their position one after another that they will suspend all financial business with our trust company.”
“Isn’t it practically kicked out of the New York financial world?”
bang!
There was a lot of gloomy talk at the board of directors.
Since the end of the 19th century, trust companies have been generating returns of over 200% per year, saving an era as the number one financial force in New York in name and reality.
A guillotine called Black Monday fell from their necks. Jack Sr.’s father, Chairman Jack, smashed the desk with a complicated face.
“How was the credit rating requested by the hedge fund? Shouldn’t we have to issue bonds somehow? If there is no issuer, we can print them.
“That…that…”
The director in charge of the task swallowed his saliva.
“…CCC-rated. It’s actually D-rated, so if you print the bond, it will be treated as a default high-yield bond.”
“Moody’s or S&P?”
“It takes at least half a year to get a credit rating. The only abbreviated credit rating agency is a hedge fund. You know. Hedge funds are the strongest in the industry, so this is possible.”
“Damn you!”
All exits were blocked.
It’s almost as if the former New Yorkers are trying to pull out their trust company hand in hand.
The mood of the board was even more subdued.
“You haven’t been shut down yet?”
“It’s not strange at any time. For now, we are holding on by pouring lobby funds into the city and state governments.”
“Yeah, let’s just hold on to the bailout negotiations.”
lobby funds.
Since the only funds given to trust companies were customer deposits, all funds including the lobbying funds were counting from customer deposits one after another.
“Still, customer deposits are at stake, but we’ll save them or kill them.”
It was happening all over New York.
There were more than 35 trust companies that the New York Fund and Settlement Service announced immediately, and more than 10 banks.
bang-!
“It’s a big deal! The stock prices of the banks we secured are plummeting in the New York Stock Exchange! The lenders add more margin because the value of the collateral has gone down!”
“Damn, his margin call is real!”
waggle window.
Chairman Jack swept away the props on the desk. The thrown objects hit the wall and were harpooned.
Jack Sr. looked at his father like that.
“Chairman, but it is a forced liquidation. We are locking it, but we do not know when banks will come in and collect stocks forcibly. I think we should prepare our hearts first.”
“…..under.”
bang! bang! bang!
“Give me my money, you motherf*ckers!”
“Are you bastards! Demons aren’t even that poisonous! Please die and go to hell!”
“My wedding funds are in! Please!”
“This is the retirement fund I’ve been saving for 50 years, you bastards!!! This is all I am! Are you saying you want me to die! Come out now!”
Chunkyung! Chunkyung!
While the board of directors is wasting their time. The crowd gathered in front of the trust company continued to knock on the iron shutters and scream desperately.
“Wait a minute, please get out of the way for a moment. I’m on official duty.”
bum bum.
A militant group was slowly passing through them. Investigators in black uniforms, armed with guns, were paving the way, followed by New York bankers.
Bankers trembled in fear that they might lose their debt.
“The trust companies have locked their doors for fear that they will go bankrupt. The New York Stock Exchange is falling in percent right now, and we will lose if we do not force liquidation!”
“So, why don’t you go in with the investigators? The investigators have come, so I guess they will open the door.”
“I wish I could.”
“As soon as you enter, you must collect them. You should throw them in the New York Stock Exchange right away. Not only stocks, but also banks held as collateral are said to have filed for bankruptcy.”
“These motherf*ckers are real.”
In anger, they walked to the door of the trust company. Reliable investigators knocked on the door.
bang bang.
“Who’s inside?”
bang!
The door to the boardroom opened wildly and black investigators and bankers poured in.
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Ordinary customers were blocked at once.
This novel was posted at https://noblemtl.com
Otherwise, confusion could be aggravated.
“According to the legal procedure of the contract, we will forcibly collect bank stocks and corporate stocks. This is only a procedure for compulsory liquidation. Please follow!”
“Yes!”
Bank collectors poured into the building of the trust company.
“Oh no, what tyranny is this! You guys know how close I am to the mayor of New York! Do you think I’ll be okay with this?!”
The chairman of the board of directors groaned and grabbed the bankers by the neck. The eyes of the bankers only turned cold.
widely.
I released the hand holding the collar.
“While the top 10 New York banks are also collecting…
“Yes!”
Collectors ripped out desks, offices, and even the bottom of drawers, wiping away all the hidden stocks in an instant.
Stocks spilled onto the desk like that and piled up like a mountain.
“All the shares held as collateral have been recovered.”
“Okay. You guys should immediately join the brokers of the New York Stock Exchange and force liquidation of all these stocks.”
“What if I can’t sell everything during the day?”
The banker shut his mouth at the question.
– There is no bid price!
I was reminded of the disaster that took place in the New York Stock Exchange this morning. As the stocks that were forcibly liquidated poured into the stock market at once, the bid price disappeared.
‘No one wants to buy it.’
The stock market was suspended for 30 minutes.
In the end, trading resumed after an hour.
-30%.
Black Tuesday.
Following yesterday, the panic started once again as 30% fell out at once.
“I can’t help it. Then, negotiate with the securities company and sell it over the counter. If you go to the US Stock Exchange, you can also buy over-the-counter stocks.”
“If that happens, there is a possibility that I won’t be able to get my money back…”
“I’ve already lost my money because of those damn trust companies! I can’t sell it right now!”
“Oh, I see!”
Banks that had completed the collection quickly exited.
and.
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Only the detectives in black suits remained. The trust company president, who was robbed, began to scoff.
My stomach twisted because I thought New York police were mobilized for the forced collection.
“Well, these days, the New York police seem to have turned into errands for the banks. You should be ashamed of the people who have to carry out their official duties chasing them around the bank.”
“Yes? Ha ha ha!”
The investigators burst into laughter as to how ridiculous it was.
“Of course, the banks didn’t come to help with the collection. What do you mean?”
“Don’t lie! You guys paved the way, so the bankers even invaded the trust company!”
“We’re not New York cops.”
Investigators in black robes took their IDs out of their chest pockets.
– Attorney for Southern district of New York.
“It came from the Southern District of New York.”
Southern District of New York
The grim reaper of Wall Street.
The notorious elite investigative agency specializing in white-collar financial crimes came to them.
The prosecutor of the Southern District Prosecutors’ Office held out an official document in front of their dazed eyes.
“This is an arrest warrant. We will arrest you at the Southern District Prosecutors’ Office on charges of embezzlement and breach of trust. Accounting fraud.”
“Ah… no… wait a minute. Sin-“
“I will accept an apology from the prosecutor’s office.”
The prosecutor who was leading the investigators smiled.
shudder.
Prosecutors loaded their guns.
“If you follow along, there will be no bloodshed.”
ugh play.
With a lot of anger.
“You don’t want to walk on all fours, do you?”
“Ahhh….”
dump.
The trust company’s board of directors, which suddenly provoked the New York Southern District Attorney’s Office, collapsed in place.
The prosecutor hardened his face coldly and gestured.
“Perform.”
***
“The bankruptcy petitions of trust companies and commercial banks have all been dismissed. All those boards and executives have been arrested by the Southern District of New York.”
hedge fund headquarters.
Attorney General Taft looked at the young banker sitting in front of him and told him the current situation.
I listened quietly.
“Haha, Attorney General Griggs praised you so much, now I understand why. Thanks to that, he took the financiers who used to only flip like loaches to the lobby. It seemed.”
From the Ministry of Justice’s point of view, bankers were a thorn in the eye.
Even though he obviously committed a financial crime, if lobbying funds are used, he is acquitted due to insufficient evidence. When the court judges were bribed, the bankers carried their backs, not the criminals.
However, they were arrested at the scene by the front-line prosecutors.
“Even if there was tacit consent from the top 10 New York banks, it’s encouraging. Thanks to you.”
Taft, a former federal judge, gave him a favorable look. In fact, he was well aware that New York’s top 10 banks had accepted the arrest at the young man’s request.
Attorney General and Federal Attorney General.
The Minister of Justice also serves as the Prosecutor General.
I waved my hand.
“No words. I am very reassured that Attorney General Taft is with us.”
“Haha, it feels good even with empty words.”
Attorney General Taft seemed to be happy with what I said, and he smiled as he roared with his stout stature.
“Now then, what will happen to trust companies and financial companies that have filed for bankruptcy from now on? As previously agreed, we plan to have them attend the next meeting.”
I smiled in response to his question.
“Let’s see.”
bang-!
“If we die, our customers’ deposits can be blown away. I can’t imagine the pain New Yorkers will suffer if their retirement savings, savings, and student loans are blown away. So, I strongly demand a bailout from the Federal Monetary Commission!”
New York.
Federal Monetary Commission Office.
Trust companies, banks, and speculative institutions were hit by the bank run due to lack of reserve funds, and they became impatient and raised a string around their necks and shouted.
Interim Chairman of the Federal Monetary Commission.
It was a position I received on Black Wednesday, but it was still useful. If it changes to the Federal Reserve system soon, it will change accordingly.
I leaned back against the back of the chair with a sullen face.
“Are you threatening our Federal Monetary Commission with your clients’ funds hostage now?”
“Intimidation! Obvious fact No! The interim chairman doesn’t even have blood on his head, so he can’t understand the complex social structure! Commissioners! If we die, even New Yorkers will see blood!”
“Hmm.”
Trust companies that give Japanese speeches in the face of evil.
I, who looked young, sat as the committee chair, and those who looked at me confidently flirted and spit on me.
– Me, those crazy people.
– Stay still, we’ll catch fire.
The terrified giants of the big banks looked at me.
I watched them silently for a while and tapped my fingers.
‘Your hair is not dry.’
Even if you look at it like this, it’s been about 27 years in one Wall Street.
I must have been on Wall Street longer than you, wouldn’t I know better?
‘The source of their confidence.’
After thinking it over, the answer came out in no time.
Yeah, it’s always the money that matters.
smiled timidly.
“Do you think the Federal Monetary Commission will run out of dollars? The dollar reserves will not be able to cover the customer deposits of your trust companies. Do you think so?”
“Isn’t that obvious! What kind of bank has that much cash!”
In general, even when a bank run occurred, it was rare for large banks to provide dollars as a bailout. Large banks had capital to replace the dollar, such as bonds and bills, but the pure dollar itself was not very much.
So, the banks that are going to be run by a bank run can afford the bailout with this capital. You can just write it down on paper and publish it.
However, withdrawals of ordinary citizens cannot be afforded except in ‘dollars’.
What will happen if you give out the bonds to the citizens?
‘So give them money, this is it.’
Laughter erupted.
Their misunderstanding was even pitiful.
The directors of large banks, who were also present as members, looked at the trust companies with an expression of absurdity.
When I burst into laughter, the judges who had been twisted were filled with anger.
“What’s so funny?”
“Ha ha ha ha ha ha!!!”
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Oh shit
It was so funny that I burst out.
“Let me ask you a question. How much cash do you need? How much money are you so confident about?”
At my question, the trust company presidents looked at each other and procrastinated.
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Oh You want to get a bailout, but you don’t want to reveal how dangerous they are right now?
Their mind is read like the palm of a Buddha.
Then you have to push your back.
“Those who do not disclose will be expelled immediately.”
“No, what tyranny is that!”
“Those who are dissatisfied can leave. Who is in a hurry? Is it you? Or is it you?”
As soon as I pointed my finger at the door, it was silent. A moment of silence passed.
“…eight million dollars.”
The president of a trust company opened his mouth.
“I need eight million dollars.”
“Since you made it public first, I commend you for your courage and we will review it positively.”
great.
When I rescued one, the bosses, who were in a hurry, opened their mouths one by one.
“We need five million dollars!”
“We have $3.5 million!”
“Nine million dollars!”
“We only need 100,000 dollars! From us!”
They pushed to the desks of the committee members and burst out in shouts. saliva on your face.
The secretaries of the committee began to calculate their amount, and eventually the required amount was calculated.
“A total of $32.5 million.”
Not even a billion units.
When I thought that they had shaken the New York Stock Exchange by calling leverage based on this amount of money, I realized how dangerous they were walking a tightrope.
I motioned for James.
“James, how much cash do we have in our hedge fund?”
“We have $2 billion in hedge funds and another $4 billion in Detroit Investment Bank.”
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Of the $2 billion in the fund, $1 billion is for hedge fund customer withdrawals and cannot be used. The remaining $1 billion is pure hedge fund profits and can be used.
The Detroit Investment Bank’s $4 billion is cash-backed by BOSS bonds.
The total usable dollars alone is 5 billion dollars.
Dozens of the large banks that participated as committee members had more dollar reserves.
“Five billion… dollars…”
took a breath
The committee members, bank presidents, and trust company presidents all were thrilled by the huge scale.
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One of them groaned and shouted.
“It’s $5 billion, so you have to lie to yourself! The Federal Monetary Commissioner doesn’t even have the mindset. Our New York financial district looked ridiculous! This is an insult. It’s an insult…”
silence.
But no one responded.
At this point, everyone noticed it.
The fact that none of the members of the committee were arguing with the words of the young Federal Monetary Commission.
Hearing the huge dollar reserves, the members sat still.
they were silent
What this meant was clear.
“…Really?”
“everyone.”
I twisted the corners of my lips.
“Now I will tell you what fate awaits you.”
quiet closet.
Now, no one vomited and silently looked at my lips.
“All the trust deposits of citizens held by the bank that hit the bank run are taken over by the Detroit Investment Bank. With $4 billion in reserves, we are ready to handle all withdrawals.”
All of your customers are absorbed by me.
“All the ‘deposit liabilities’ owed to us by your trust company will be recorded in your accounts and our accounts.”
All this is in debt.
“In the account book, the debt of 10 times, up to 20 times leverage and the deposit liabilities we have taken over are recorded, and all of your bankruptcy petitions will be dismissed by the court.”
bankruptcy petition dismissed.
You can’t destroy yourself at will.
“Wow, whoever wants to do that…”
“The dismissal of the bankruptcy application is possible for the following legal reasons, based on your splendid double ledgers in accounting fraud and charges of embezzlement and breach of trust.”
It is a legal policy to prevent the intentional default of corporations.
A bankruptcy petition may be dismissed.
“Your identities will be arrested or assigned to be monitored by the Federal Prosecutor’s Office. If you escape or commit suicide, it will be difficult for you, so you must stay with the guards 24 hours a day.”
Now your freedom has been confiscated.
“There is no debt relief. There is no bailout to be provided to financial institutions, and you have to bear the debts of the financial institutions.”
‘Citizens love showmanship.’
It’s a witch hunt in the financial world.
They’re bad guys anyway. As for the citizens’ deposits, you guys started first.
“everyone.”
I looked around the presidents of the trust companies who had gone black. They turned their heads and looked at me, wondering what they were hearing now.
click! click! click!
When the Wall Street Journal reporters who had been placed in advance set off the flashlight, the trust company presidents collapsed on the spot.
“……no.”
The appearance of the white knight.
The decline of laissez-faire.
And the trigger for the Federal Reserve system rang out.
“No, no, no, no, no, no, no, no, no!”
screams and screams.
Blood-stained drops of red ink seeped into the vows, and were held out to them.
“Now, the days you used to install are over.”
And I.
With my own two hands, I opened the door to a new era.
＜ Twisted White Knight. (1) > end
