American Fortune Life
Chapter 1043: Dust Settling
Ten billion dollars!
The hand touching the chin couldn't help but stagnate slightly, Andy's half-crushing eyes flashed with color, his gaze and still faint expression of the think tank's chief advisor looked at him with hesitation.
“Cough, let it go for now, let's finish the acquisition of the Federal Bank of Mac, India... ”
Andy would not give a definitive answer at this time, even if he was cheating on this part of the money, which is a bit of a loser, but good that he doesn't have to do it himself, but it would also attract some abusive names.
Because the FDIC was promised a final negotiation in the afternoon to discuss the final details, Andy's Little Versailles Palace became unusually busy for the first time, after all, as a temporary office space for more than fifty people.
After the meeting, Andy took Alvitelli to his extravagant study, sat on a chair, lit himself a cigar, and frowned somewhat depressingly.
“Al, you gave me a big problem... ”
Alvitelli smiled slightly, took the coffee and tasted it slowly, not at all concerned about the young BOSS tangle.
“This will make many Americans feel cold!” Andy's serious face, covered in cigar smoke, shows concern.
“It is impossible to control the quantity and create a record that is not one of the worst, if not the worst. This is the only way banks can reduce losses for people who cannot repay their loans. It is not up to you, boss! The spirit of the contract must be fulfilled, no one is a child, when the price of the house rises, when they make money, they do not pay the bank a dollar more!
Boss, your compassion and sympathy are in the wrong place. It's a business act, it's a business, it's not ethical! “
The look on Alvitelli's face suddenly became more serious, a calmer analysis.
“Oh...” Andy shook his head and laughed, but he knew Al was right, and indeed, he could never fail to repay the loan and let the bank pay.
“Okay, you take care of this! ”
Andy eventually decided to deal with the matter in accordance with United States practice, even though he knew that Al's deep intention was to proactively create foreclosures, let the court confiscate the property, and then sell it at a lower price, trigger FDIC's loss sharing agreement, and recover the loss from FDIC.
In the afternoon, in the city of Pasadena, Los Angeles, in front of the lobby of the Indian Mac Federal Bank headquarters, U.S. Secretary of the Savings Administration Rick, the head of the U.S. Federal Deposit Insurance Corporation, and a dozen executives watched a huge fleet of more than a dozen SUVs and a black Rolls-Royce coming from afar.
“Here they come! ”
“Boom, boom... ”
The convoy was lined up in the square at the bank's headquarters, all doors were opened, and a group of suited pens came down, and the heavily colored Wall Street elite, all walking quickly towards the center of the black Rolls-Royce concentration.
The tall, strong Kenny opened the door, and Andy, also in a suit, walked out, stood in front of the car with a smile on his face, gazed around, looked at the headquarters of the Federal Bank of Mac, India, and the group of people walking down the stairs from the gate, with a slight tip at the corner of their mouth, and took the lead to greet them.
The huge team behind Andy made passers-by around the Federal Bank of Mac, India, as well as employees and customers in the bank lobby, look at it curiously, and everyone knows that something big is going to happen.
“Welcome, Mr. Smith, I'm U.S. Secretary of the Savings Administration, Rick, and this is... ”
“Hello... ”
Andy smiled face-to-face and shook hands with the main people in charge of this negotiation. This was Andy's first meeting with them, and it was the last crucial xing negotiation to take place. There was really nothing to talk about, mainly confirming some of the details of the agreement, such as the bank's employee issues, and some things that needed to be collaborated on.
After all, the bidding process was skipped directly and was not so “orderly” in the takeover of Mac Bank of India, but there was no way. At this point in time, only Andy Smith had the ability and the money to be the winner, and FDIC was reluctant to hand over the bank immediately.
Seventy or eighty people walked into the bank headquarters building in a row, attracting a lot of attention, seeing Andy Smith, the head of the bank, and those around him, laughing, and some customers who were worried about the problems at the Indian Mac Federal Bank inevitably thought of a possibility, after all, FDIC had publicly indicated that it would look for a buyer for the bank early in the morning.
“Oh, my God, Andy Smith is about to acquire the Mac Federal Bank of India... ”
Watching Andy's people disappear, the whole banking lobby was in discussion, and the employees of the bank were also a little stunned. After that, they were stunned. After all, nobody knew if they would be dismissed if they changed the new owner.
You know, 3,800 employees have been laid off before, and although there aren't many real bankers, most of them in the loan issuing department of the Ministry of Housing and Construction, who can guarantee that the new owners won't open their knives to reduce costs?
In the conference room.
“ There will be no layoffs for the time being, after all, it was almost cut before it went down, and the regulator did a perfect "autopsy" on it, I believe the current composition is the most perfect state, I have no problem with that! ”
Andy's words gave everyone in the conference room a strange look, and Ryker, Secretary of the U.S. Savings Agency, shook his head slightly and smiled.
“Mr. Smith, if there is no objection, we can sign the agreement...” The head of the FDIC most hopefully threw away this hot potato in his hand sooner rather than later. To be honest, taking over the Federal Bank of Indian Mac is of no benefit to the FDIC, not only by constantly cashing in the deposit compensation, but also by facing the constant and massive cash withdrawal dilemma every day.
“$1.5 billion in purchase price plus $1.3 billion in capital injections, right?” Andy smiled and looked at several negotiators across the street, reconfirming.
“No, no, Mr. Smith, I'm afraid you're mistaken, that 1.3 billion is a loss sharing agreement deposit that needs to be paid to us at the FDIC, and the bank injects the money, which is your money to support the operation of the bank. ”
Looking at the FDIC director's impatience, Andy couldn't help but apologize and say, "I'm sorry, maybe I misunderstood, Al. Is that right? ”
No one in the whole place can believe you've misunderstood until you've spouted in your heart, Nima, and it's a billion dollars.
Ryker, Secretary of the U.S. Savings Administration, was rather speechless, even a little helpless, watching Andy Smith, who knew that the young man in front of him had bought $10 billion from the Fed to buy the Indian Mac Federal Bank.
But nobody thought that this was a big deal of 10 billion dollars, and three talks turned into a takeover case of less than three billion dollars, Neima, which was unexpected by many people.
But it is also impossible, with $23.5 billion of the Bank of India's major assets being commercial loans, mortgage loans and MBS. Many of these are highly toxic assets, almost many of which cannot be recovered. Otherwise, how can it be called a subprime mortgage crisis? If this part of the asset is also priced in the acquisition price, I am sure this bank will not sell it for life.
“Mr. Smith, we need to close the deal as soon as possible to boost the market. After all, the dilemma facing the US banking industry is so daunting that the crowding wave cannot allow it to continue to spread. I believe the terms of this deal are very beneficial to both sides, which I believe you are also very aware of! ”
Understanding the truth, U.S. Secretary of the Savings Administration Rick had no intention of continuing to waste time with Andy Smith here, knowing that FDIC's agreement to sign a loss sharing agreement was already the biggest concession, and that they were worried about not making such a guarantee, and that Andy Smith, knowing his toxic assets and debts, had picked a choice.
“Well, that's it! The agreement can be signed immediately, and I hope that you will cooperate with my people to take over the bank assets and avoid any confusion, I don't want any more confusion! ”
Andy closed the deal, took his face seriously, and honestly, there was nothing left to say. Everything was taken care of ahead of schedule by Alvitt, and even the high moves of the Loss Sharing Agreement came to mind, which is exactly the amulet that will save him from the worst losses in the next few years, and there's nothing to hesitate about.
And he could save more than $7 billion on the next bank merger, and he was so happy!
But come to Paulson and the Fed and die of depression!