＜ War Bonds. (3) >
Upon hearing the news that President Morgan had called me, I immediately boarded the train to the address in the envelope.
Jekyll Island.
A kind of aristocratic resort that is owned by Chairman Morgan and used as a villa by the giant families that rule the United States.
It is also the home of a scheming scheme that sometimes organizes institutions that will leave a mark in American history, such as the Federal Reserve.
Rockefeller and Morgan and other huge families had their own villas.
shoot-
“The president is inside.”
Corsair Lake.
As I descended Jekyll Island, a huge yacht appeared in front of me. The horse was a yacht, but it was almost a small warship.
It is a yacht with such a long history that Chairman Morgan organized the Federal Railroad Association to mediate whale fights between giant railway companies.
Three flags were fluttering in the Corsair Hohen.
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Old Glory.
Union Jack.
pirate flag.
‘Pirate flag?’
“……What is that?”
“Yes? Ah, Jolly Roger.”
There is a yacht with a pirate flag attached to it, and I asked the secretary of Chairman Morgan why it was hanging there.
The secretary nodded as if familiar.
“It is a small play by the president, who implicitly brags that Henry Morgan, a famous pirate of the British Empire, is his forefather.”
‘…were we a pirate family? Wasn’t Morgan a long-established WASP family in England?’
According to the secretary’s explanation, he was more like a thief than a pirate, but he seemed to be a prominent figure enough to receive the knighthood of the British Empire and rise to the rank of Vice-Governor of Jamaica.
It was a time when pirates had a lot of romance, so I could understand President Morgan’s pride.
But I don’t know if it’s real.
it’s getting messy
“…Where is the president?”
“You can follow me.”
rumble-
I followed the secretary aboard the Corsair.
I thought that the inside of the Corsair would be complicated because of its huge body, but surprisingly, it was easy to find because it was open in all directions.
When I went inside, the chefs on the boats in white hats crossed me and came out.
“Excuse me.”
A large dining table fills the interior of the room.
A sumptuous meal of steaks, caviar, truffles, lobsters, and gourmet soups was laid out on top of each other, and smoke was rising as if they had just finished cooking.
First of all, I was worried that Chairman Morgan was also from the UK, so he had a strange eating habit, but it turned out to be true.
“Oh, are you here?”
Chairman Morgan was sitting on the sofa by the railing, smoking a cigar.
I hardened my expression at President Morgan’s appearance.
“Yes.”
“Sit down.”
Chairman Morgan tapped the seat next to the sofa with a surprisingly calm expression.
In fact, when I think of what I did to Jack Tracy, I didn’t have anything to say even if I got burned with the cigar I was smoking as soon as I sat down next to him, but I sat down on the couch next to him.
“The military law trial of the Ministry of War was an unexpected number. There you can certainly kill Jack Tracy without going public.”
“……”
“Well, I didn’t call you to blame, so you can sit comfortably. Thinking about what Jack did to you, your numbers make you feel so gentle. On the contrary, I am genuinely admiring your number this time.”
“….!!!”
At President Morgan’s unexpected remark, I quickly turned my head. He was still smoking a cigar with an unconcerned expression on his face, looking out of his kneeling window at the horizon of the Atlantic Ocean.
He glanced at me with a smirk.
“Amnesia?”
“…..Yes?”
“Last November. The one who collapsed from a fever at the Waldorf-Astoria Hotel. Doctors reported that you had amnesia at that time.”
“….!!!”
“I was skeptical at first too, but I was convinced by the way you treated Jack Tracy. That you have lost your memory. It seems like a lot of memories have come back now.”
memory loss.
In a way, it was just as President Morgan said. I was a 21st century meteor, and I possessed a 19th century Detroit Morgan, so I have very faint memories of Detroit Morgan.
“I only vaguely remember the sight of Jack Tracy looking at me disgustingly.”
“Well, in this case, it’s hard to say that I’m fortunate to have amnesia. If you look back on the years you’ve been tormented by Jack Tracy.”
I told Jack Tracy that I was an illegitimate child, but Morgan’s second son, I was a thorn in the eye, so he started to bite me for being yellow.
‘If this is the case, I can understand it, but…’
After that, the remarks that came out of President Morgan’s mouth were shocking no matter how much the country.
“I put bleach on my skin saying that I was going to be white, and I was bullied at school by spreading the fact that I was yellow to my schoolmates who thought I was white because of my appearance. Are you saying that he tried to poison himself as well as try to assassinate like a meal? As an added bonus, even my deceased mother has been accused of being racist and humiliated.”
“How mad I was to have NYPD guards around you. In the end, James struggled. I was hoping for a financially-satisfying rivalry between the brothers, but strictly forbiding life-threatening murder. But he started to do strange things.”
“…Isn’t it more unusual here?”
Jack Tracy’s atrocities were truly heinous, filthy and dirty. He was a gentleman on the outside, and he was a human with great connections.
The inside was insidious.
“I even tried to castrate you to cut off the blood of the yellow man. Once I stopped it.”
“……”
“It was basically my outright laissez-faire, but I felt that this was a bit over the line. After that I put an oath on the entire Morgan Bank. If you have time to discriminate against racism because you are a yellow person, make money with that time. If you don’t want to get fired.”
“haha.”
thick-
I felt a tendon build up on my forehead.
‘…Are you really going to kill me? That crazy bastard.’
High-ranking s*xual assault is basically obscene rumors, castration, defamation, assassination attempts, school violence, and even paddling?
While taking the Pennsylvania Railroad from Wall Street to Jekyll Island in New York in a small ferry, I even had pity for Jack Tracy that I was a bit too much.
A handful of sympathy has just evaporated from President Morgan’s words.
“I stopped when Jack tried to kill you. Again, I lobbied and appealed to the War Department, which ultimately prevented Jack’s execution. So don’t be sad.”
“Yes.”
“Relax your eyes a bit.”
“…….Yes.”
“You seem to be a lot more like me than Detroit these days.”
But soon after, President Morgan took a deep breath.
“But even if I tried to save Jack, it was only because the medicine I took was like that. At first, I was suspicious of you, but they told me that all cold patients in the military hospital are like that.”
That’s right.
Because it was a crazy era when drugs of this era were often mixed with narcotics. It was not until the 1910s that even heinous drugs, such as heroin, were banned by the federal government.
Chairman Morgan’s lament was not over.
“Is that all? It is said that the antitussive effect is excellent and it is sold in general pharmacies. Does this make sense?”
“……”
“For now, I plan to file a lawsuit against this drug in federal court. I plan to hold Bayer, the German empire that developed heroin, for the life of Jack Tracy and to pay for it.”
“okay.”
heroin.
As a side effect, shortness of breath came, and as a withdrawal symptom, it was a very heinous drug that spilled all the water out of the holes in the body.
I do not know if it will be cured, but even if it does, it will be difficult to return to daily life.
“Well, let’s end the nagging at this point. It’s not like I heard it’s long.”
“haha.”
That’s also correct.
“Instead, I’m going to give you a deal in return for your life, just like I did with Jack. tell me if you want anything Don’t listen to anything. It is the price of a person’s life, so it should be treated generously.”
“…!!!”
Is it a deal?
Morgan was treating me as a financier and entrepreneur, not as a 16-year-old son.
In fact, there was only one thing I wanted at this point.
“I would like you to give me the rest of the shares in Federal Steel.”
“Oh, come to think of it, I heard a report that you swept away your shares in Federal Steel. great. I will not hand over the rest of Federal Steel’s stake to you.”
“!!! thank you.”
I felt my fleshly intent melt away.
I finished something in one shot, but with this, Federal Steel came into my hands. Federal Steel is now a 100% owned company.
The Newport News shipyard was also free to merge.
“Ah, I have one more thing for Detroit, so sit down instead of getting up.”
“Is there one more thing?”
what’s the dragon?
But at Morgan’s subsequent words, I felt goosebumps rising behind my back.
“The bond fund you envisioned. No, did you say debt-secured securities (CDOs)? You came up with something quite interesting.”
“….!!!”
“Non-performing loans are turned into high-quality bonds, and in this way, funds can be drawn to insolvent companies. Very quirky. amazing.”
I felt my blood cool.
Morgan might have thought that it would have been better if he had been interested in CDOs simply to create trusts or to liquidate loans.
In fact, it is possible to attract funds to insolvent companies, and when those insolvent companies are brought together, it becomes a monopoly trust and becomes superior.
Chairman Morgan’s trust had a high success rate.
‘However…..’
But now I could read President Morgan’s head, who had a satisfied face.
IMM.
International merchant shipping company and giant shipping trust.
That was President Morgan’s dream. And it was President Morgan’s rare shovel.
‘…If the CDO starts selling a mix of IMM’s non-performing loans, it’s not a joke.’
The fate of the IMM came to an end with the sinking of the Titanic.
said to be bankrupt.
‘That huge shipping trust went bankrupt, is it linked to the CDO? I’m not kidding.’
I realized it thanks to Chairman Morgan.
The fact that no matter how soundly I use CDO, the 19th century Wall Street beasts cannot soundly use this concept of CDO that I started.
The bomb of derivatives.
It was the end of the 19th century, when the insurance industry boomed. CDS, an insurance linked to CDO, would also be circulated, and if CDO and CDS were securitized in the second and third phases, leveraged in the market, and released, it would only be a repeat of 2007.
That is, the trigger for panic.
I wiped the drops of sweat from my throat with my fingers.
“…..father. I will withdraw my message.”
“Withdrawal of message?”
“The deal for Jack Morgan’s life.”
“Oh, yes. Does not matter. So what do you want in return?”
cold sweat flows
I looked at President Morgan with a heavy expression on my face, with my head pounding like a crack and tinnitus in my ear.
You get this price even if you risk your life.
Because even after I died, I had no intention of plunging the huge capital and industrial market of the United States like the goose that lays golden eggs.
“I hope that Congress will pass a bill that will give the CDO a credit rating and oversee it in the future. Let’s call it the credit law for simplicity.”
‘I never intend to reproduce the madness of that era in America. The only way to do that is to pass it as a bill and nail it.’
Chairman Morgan immediately objected.
“Detroit. I think passing this bill means to sound the CDO spreading in the US. Or give the CDO you issue a good grade.”
“I do not want the collapse of the US market.”
“Will the U.S. market go so far that it collapses? Isn’t it just liquidating securities?”
The exact concept of CDO is as follows.
When a commercial bank makes a loan to a customer, cash is withdrawn from the bank’s vault to the customer. If that happens, the bank will run out of cash to manage.
So the bank came up with it.
Let’s turn a loan into a bond and use that bond as collateral to bring cash into a bank vault.
Then the bank will be able to lend again with the cash it has drawn in. The loan is re-bonded and the money is used as collateral.
What if I bring money?
The cycle of lending again is completed.
So it is a debt-secured security (CDO).
It was a system that bonds debt and draws cash as collateral.
However, the collateral created by this bond is a problem.
Non-performing loans such as sub-prime mortgages have a low credit rating, so even if they are used as collateral, they can only bring in a little cash.
Then Wall Street comes up with a clever idea.
– Oh, then, if you raise the credit rating of the non-performing loan, you will be able to attract more cash!
So, when CDO was issued using bonds as collateral to improve the credit quality of subprime mortgages, a mix of high-quality bonds and non-premium bonds was secured as collateral.
Credit has increased. I was able to bring in more cash.
This novel was posted at https://noblemtl.com
Of course, there was a CDO boom on Wall Street.
By the way, do credit rating agencies give you aa and AA ratings even if you mix more non-premium bonds?
– Why did you give this CDO a B rating?
– Yes? Those are bad debts…
– Can’t you see that the customer is going to the credit rating agency in the building next door?! Just give me an AA!!!
At that time, credit rating agencies also began to print aa ratings at random in order not to lose their customers to competitors.
The madness of Wall Street begins to explode from this point on.
They mix a lot of non-premium, get aa grade, and issue a CDO with that as collateral to scour the cash.
Then, they turn them back into non-premium bonds and issue CDOs with them as collateral.
Thus, non-preferred bonds began to be linked with each other.
In the end, the moment a 10 billion-dollar loan randomly prints a CDO, repeating it 100 times turns into a trillion-dollar non-performing loan.
And what if the 10 billion dollar collapses?
1 trillion evaporates.
So what about big banks?
boom bankruptcy.
However, how the large banks survived this time was because they repaid their loans with infinitely printed dollars through quantitative easing.
In the end, it was filled with country money.
The moment this madness arrives in the 19th century.
America will forever be eliminated from the ranks of great powers. I bet my palms and promise.
At this point, when the dollar is not the key currency, the country will go bankrupt.
“…!!!”
After hearing my explanation, Chairman Morgan made a confused expression as if struck by lightning, and then his expression subsided terribly.
“…that this is a CDO. For a moment, as you said, I also fell in love with the way to increase the ratio of non-performing loans.”
“……”
“I am one of the most disciplined people in the American financial district, but the hyenas on Wall Street are terrified. The guy called credit law you want. Be specific.”
nod
I nodded heavily.
I’m glad I’m Morgan President.
“Please help us so that the National Recognized Credit Rating Agency (NRSRO) selection law can be passed by the Washington National Assembly as a credit law. That’s the price I want.”
National accredited credit rating agency (NRSRO)
A system that has established a firm trust in Standard & Poor’s, Moody’s, and Fitch, the so-called big three credit rating agencies of the 21st century.
i want it now
“Of course, the selection of a nationally recognized credit rating agency (NRSRO) is a condition of entrusting it to the previously established Federal Monetary Commission.”
Federal Monetary Commission.
The predecessor of the Federal Reserve System (FED).
I intend to shake the red shard of this mad fluoride bullfight into my hands.
As if the Securities and Exchange Commission (SEC) wielded undisputed power in the 21st century. In this era, there was no securities transaction law yet, so it is intended to be passed as a credit law.
However, someone might ask if it is possible to spread CDO in overseas markets if it is passed only by the US Congress.
My answer to that is clear.
‘If it’s not the United States.’
I mean, it’s not my thing.
lullaby
President Morgan took the cutlery in his hand. When I sat down, the already large desk looked as wide as the Pacific Ocean. And up to the high-end meal set on top.
gulp. There was saliva in his mouth.
“I often eat like this.”
“….yes.”
I also picked up a spoon.
A sumptuous meal awaited me.
＜ War Bonds. (3) > end
