Riyu's Back File 2011

Texas Hold'em is a card game with simple rules but extremely challenging brainpower and decision-making. Because the game process is very similar to the decision-making process in trading, it is very popular among traders and bankers on Wall Street.

A new round of the game begins again. There is no waiter in the private room. Instead, the players take turns to be the dealer.This is also for the need for confidentiality.After all, many topics that can cause a lot of disturbance in the outside world are often discussed in this room.

After the new round of cards was dealt, Peter Johnson took a pair of fives with his hole cards and glanced at the three community cards on the table. There was still a five point inside, which happened to be a pair of three.

"Peter, it's time for you to talk." The superior Jim O'Neill looked at Peter Johnson and urged him to make a decision. Before everyone had chosen to call twice.

"I don't think my luck should be that bad today. I followed." Peter Johnson looked at his opponent Royd Blackfin. The top Goldman Sachs leader lit a Cuban COHIBA cigar and smoked slowly, his eyes squinted. Revealing his attention to the game.Gosba, Che Guevara's favorite cigar, is also the favorite of Wall Street bankers.

Peter Johnson’s next home is Johnny Berg, who is the last one in the clockwise direction. Although he only has a ten o'clock in his hand, and the ten o'clock on the table can only make a one-to-ten, but the cards are not dealt out, who knows What will happen.He threw two raises into the pot, and said with a smile, "Sometimes, the good in the early period does not mean the winner in the later period, does it? Just like the empty homes of the stock index in August, I think the roller coaster scenery should be very exciting. Exciting. I follow."

In the next round, Jim O'Neal issued a ten. At this time, there were already a pair of ten in the four community cards. The other two saw that they had no good chips in their hands, and decisively withdrew from this round of the game and left the game.And there are only one full-cock Peter Johnson and one three-seater Johnny Berg.

In fact, it can be seen from the card game that the character of these bankers determines their investment style. Peter Johnson is a prudent faction. Even if the cards in his hand are very good, he does not easily decide to make a big bet because he uses him. In other words, "Stud is to hand over fate to others. Only seeing the chance of winning is the best time to bet." Therefore, Peter Johnson has the nickname "Jackal" in Goldman Sachs. Don't get me wrong. It does not mean that Peter Johnson is hungry, but that his favorite investment style is to operate with a huge flow of funds in his hands, specifically to pick opponents who are not as strong as his own, just like the jackals on the grassland looking for the lions to eat And rot, although it can't take this to get rich, but it can accumulate little and make more, and live pretty well on the financial prairie.So although Peter Johnson's SVB is only a medium-sized investment company, its profits tend to look good.

Johnny Berg is a typical speculator. He and Peter Johnson are two completely different investors. Their favorite is to place heavy bets.Generally speaking, gamblers are ignorant and reckless, but Johnny Berg’s character is full of delicate and complex aspects. Although he likes to bet heavily into the field, he prefers to use a variety of methods before placing bets. Ways to improve his winning rate, whether it is an off-market move or some illegal means, so the SEC's fines for him are also the most.

And the remaining three people belong to the kind of people who are not stable, because whether it is CEO Royd Blackfin, or Goldman Sachs Asset Management Chairman Jim O'Neill and Goldman Sachs Global Director of Human Capital Management Lloyd Blackfin, they are all People in high positions have countless resources in their hands.So on Wall Street, they are more referees than players who are off the court.They provide funding and ammunition support for the heads of Goldman Sachs' investment department and partners around the world. Then the front battlefield is managed by this group of people, and most of the profits are from the back group of senior management.

Just like Royd Blackfin, even if he does nothing for a year, his annual dividends and salary alone are tens of millions of dollars.And investment companies such as SVB established by the Goldman Sachs partners themselves, that is, the existence of the Goldman Sachs department, often have only so much profit in a year, most of which are still working for the investor Goldman Sachs, and finally can be divided into the hands of the founders. less.For example, Peter Johnson's annual average income is barely tens of millions. Regardless of SVB, it can easily leverage billions of funds, but that is investor money.So in casinos in the financial industry, there are often many winners, but the last laugh is only the dealers who opened the game.

After a round of cards, the two people who withdrew from the game were not idle. Instead, they talked about some recent events on Wall Street. Although the remaining two were still playing games, they did not really put a handful of hundreds of dollars. Keep the gambling game in mind, instead, as soon as the hole card is opened, the game ends smoothly and joins the chat.Some of the five lit up a cigar, and some poured whiskey into the glass.

"How about the follow-up of Strauss Kahn's case?" It was CEO Royd Blackfin who asked the question. He was referring to the International Monetary Fund (IMF) Sdominic Strauss-Kahn. This person was arrested in New York on May 14 for allegedly sexually assaulting a waiter in New York. The U.S. judicial department subsequently filed a lawsuit against him on three counts of "sexual crime, attempted rape, and illegal imprisonment."

"It should be no problem. If nothing happens, his political life should be over." Jim O'Neill took a sip of his cigar and exhaled a breath of smoke."The People's Movement Alliance stated that it will pass our approval for the fixed increase in the financing of Industrial Bank, so that our influence on the French financial industry will be deepened."

The People’s Movement League is the current ruling party in France, and Strauss Kahn is the opponent launched by the French Socialist Party to fight President Nicolas Sarkozy. Previous polls show that the support rate has always been high and is known as France. The politician who understands economic issues best is also a strong contender for the next French presidential election.

"Let them get it done quickly. Who knows if Sarkozy will be on stage next year. If you fall a Strauss, isn't there another Hollande? We can't put the treasure on Sarkozy. Get the Industrial Bank. You can contact the Socialist Party and explode to them the evidence that Sarkozy used the intelligence agency to monitor Strauss Kahn." CEO Royd Blackfin raised his glass and took a sip, and said to Jim O'Neill.

"But the Industrial Bank's financial report is not so good-looking. Even if we become their shareholders, the forward income of this investment will not be too good." Jim O'Neill is familiar with the Industrial Bank.

As early as a few years ago, he had begun to deploy Societe Generale, the second largest bank in France. Before Societe Generale suffered a huge loss of more than two billion euros after the financial crisis, and was also reported to the outside world by its CEO Daniel Burton. It was announced that a trader in the Industrial Bank secretly established a position related to European stock index futures, and in this type of investment that exceeded his authority, caused a loss of more than 4.9 billion euros to the Industrial Bank. This story was later adapted as The movie "The Outsider".

In fact, similar scandals have not never appeared in the financial world. For example, in 1995, Baring Bank went bankrupt due to the illegal operation of a trader Nicholson in the Indonesian branch. This man later wrote the book "How I did it." Bahrain bank broke!"Best-selling book, also adapted into a movie by Hollywood, starring in the famous "Bird-Skater" Ivan McGregor, his "Guessing the Train" and "Star Wars" just made him famous, and really made him a nickname. You still have to watch "Young Adam". After all, the capital is strong, and if you don't show it, it makes people envy, jealous and hate.

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Once the Industrial Bank scandal was announced, it caused an uproar all over the world. The share price of Industrial Bank plummeted, and the decline was as high as 4% on the day the scandal was exposed. Although the shares of Industrial Bank were suspended for rectification in the following days, they were reopened after trading. , The decline has reached 20%.Such a decline caused heavy losses for Xingye, and nearly 30 billion euros of assets were evaporated.Until now in 2011, the situation of Industrial Bank has not been much eased, so Industrial Bank will have the demand for fixed increase financing, and hopes to cooperate with Wall Street traders like Goldman Sachs, through the operation of Goldman Sachs, financing is successful at the same time It can also raise the stock price.

For investors who are on the sidelines in the market, if Industrial Bank can successfully raise funds from Goldman Sachs, then it is a hint: Industrial Bank can be favored by Goldman Sachs because Industrial Bank has potential investment value. Otherwise, how could a top investment bank like Goldman Sachs Take billions of euros to float away?As a result, the market tends to favor Industrial Bank, which will allow its stock price to rise.

Top Wall Street players like Goldman Sachs often have greater appeal to the market than they can operate. After all, the market is unlimited, and Goldman Sachs's strength is limited.The really smart players are the predators who know how to control the market and play with the hearts of investors.

Therefore, this is not only an attempt by Goldman Sachs to exert force on Industrial Bank, but both sides have this intention. However, the French government has been worried that Goldman Sachs' influence on Industrial Bank will affect the independence of the French financial industry.If it weren’t for the People’s Movement Coalition to try to use Goldman Sachs to crack down on potential rival Strauss Kahn in New York under the pressure of the election, it might be difficult for the deal to pass. After all, the French side would not only have to explain domestically, but also had to Explain to the Eurozone, especially the pressure from Germany and the UK.At this time when the European debt crisis is spreading, the French side opens the door to lure the wolf, and it will inevitably attract questions from other EU members.

"It doesn't matter, as long as we can help us operate the European market, there will be opportunities to make up for this loss in the future." Royd Blackfin said in a clouding manner. If the line's ambitions in the words are revealed to the outside, it will inevitably cause problems in the market. Disturbance, this is why the waiter is never allowed in the room.

Another major event in 2011 was the fermentation of the European debt crisis. Goldman Sachs tried to influence the European market through Societe Generale, and then to profit from the operation of several European Union countries such as Greece that are deeply in debt crisis. This project has been managed by CEO Lloyd two years ago. Blackfin has personally operated it, and it continues to this day. It is not difficult to tell from his words that he has made a lot of profits, even the 5.5 billion euro financing of Industrial Bank is not in his eyes.Even in the eyes of Royd Blackfin, the benefits that can be obtained from the European debt crisis are not worth mentioning in the euro foreign exchange market. The investment in Industrial Bank is just a paving for the future to short the euro market.

This is also the operating style of Royd Blackfin. As a figure who has been famous in the investment industry for many years, he likes the grass snake gray line to do the long-term market.Because although the market seems to be full of emotions in the short term, the uncertainty is greatly increased, basically it can only rely on luck.

But if you look at the long-term market, the vaguely revealed periodicity can still allow keen investors such as Royd Blackfin to see the rules and lay out their own operations.This is also an alternative value investment, just a reverse investment.Compared to Buffett's underestimation of buying value companies in the market, Goldman Sachs people prefer to short the market.

On the one hand, destruction is easier than construction, and on the other hand, because most people do not have enough strength to support the market recovery, short-term operation is the main battlefield of the investment market, and short-term operation methods are more suitable for shorting. After all, the market It’s easy to panic because of one or two news.

What is information as the primary productivity of the financial market?This concept is too profound in the private room.Just in the conversation between several people at the table, the information revealed was amazing.Not to mention the impression of politics, just relying on knowing the financing news of Industrial Bank and doing long in the secondary market in advance can create many millionaires.Just like Miyazaki Aosuke knew the news of Kinder Morgan's acquisition in advance, the ability to know inside information in advance in the market is always a weapon for all disadvantages.Of course, it is also the main force of the SEC's crackdown.

As for why everyone here does not care, because this kind of CASE is too small for the billions of people, and the profits that can be made are limited.For ordinary investors, Industrial Bank has a market value of tens of billions, and there is no pressure to digest tens of millions of funds, but for senior partners like Goldman Sachs, millions of profits are too low and not worth it. Enter the market at the risk of being investigated for insider trading.

"The company has to operate relatively few projects recently. If the financing of Xingye goes well, there should be a lot of extra energy in the group. I have a report here, and everyone can take a look." Peter Johnson smoked a cigar. After listening to the two people opposite, they took out a document and threw it on the table.

"Nomura? That old thing Kenichi Watanabe is not easy to deal with." John Winnipeg on the side saw the title written on the report and said.This man suffered a loss in Nomura's hands during the previous financial crisis. At that time, Johnny Berg took a fancy to the high-quality properties of Lehman Brothers after the bankruptcy. You must know that Lehman Brothers was the world's number one investment bank that beat Goldman Sachs before the financial crisis. The properties in his hands are distributed in the most luxurious streets of New York, and are a very high-quality asset.

Later, after Nomura Securities acquired the investment banking business of Lehman Brothers, it turned to look at the fat in the eyes of Hanwiniberg, and by reporting to the Securities Regulatory Commission of the illegal operation in a previous business of Hanwiniberg, He was trapped in the SEC's investigation and was unable to compete, and ultimately missed the Lehman Brothers property, and the SEC severely penalized him.This impressed John Winnipeg with Kenichi Watanabe from Nomura Securities, and hated him.

"You play for a while, I'll look at the document." Jim O'Neill took out a pair of eyes, took the document by himself, and turned to the side of the sofa facing the light of the standing lamp to quickly read the thick document.As the chief economist of Goldman Sachs, Jim O'Neill is not only the chief staff of Goldman Sachs, but also responsible for auditing Goldman Sachs directly responsible for large-scale projects.The father of the BRICS is not only a top foreign exchange market expert, but also has rich experience in project review.

"Peter, I believe you should be very clear about my mind. I have always been interested in Nomura's project. Of course, it is not the usual revenge, but wherever I fall. I just get up there. I just want to leave my own pit Bury it, and by the way, bury Kenichi Watanabe this old thing." Johnny Berg finished speaking, stood up and slammed his fist, and poured another glass of whiskey.Speaking of this enemy, his personality was a bit extreme, and he was a bit emotional.

"Sit down, Johnny. Let Jim finish it first. Some things are not for you to decide." CEO Royd Blackfin's words made Johnny Berg's feverish head cold.Since Peter Johnson chose to hand over this project at this time, it must be because he can't afford it. Goldman Sachs must do its best. However, when it comes to large projects involving the company's overall investment direction, the decision-making level will quickly narrow to CEO Royd Blackfin. In fact, perhaps Jim O’Neal can also put in a few words to influence Royd Blackfin’s decision, but other people can only obey and have no opportunity to participate in the decision-making.

Regardless of how the decision-making gang of Goldman Sachs is called 12 Arhats from outside, they are still executive directors in name. If they talk about some small projects, they can say two things. When it comes to major strategic projects of Goldman Sachs, CEO Royd Blackfin tends to be arbitrary. This is also the temperament of the dictators of many large companies, who like to hold power firmly in their hands.

"This project was proposed by Miyazaki Cangsuke. A young guy, I heard that it was a member of the Fukuda family of two prime ministers of RB. This month, he made a fortune in the stock market through short-term transactions, which caused the United States. Lin and the attention of a small group of people.” Peter briefly introduced the background of the project and continued, “His father’s death seems to be related to Tokyo Governor Shintaro Ishihara, and Kenichi Watanabe of Nomura happens to be a supporter of Ishihara. ."

"So he wanted to deal with Nomura Securities?" Johnny Berg took a sip, and he couldn't help closing his mouth when he heard Peter's words. "My God, Peter, have you lived too long and your brain doesn't work?" In Johnny Berg's opinion, even an old man like himself who has been in trouble for many years has fallen into the hands of Kenichi Watanabe. A young man is like dealing with each other. It is a long time to see.

Peter Johnson slumped his shoulders, ignored Johnny's sarcasm, and resumed playing Texas Hold'em.In the next two periods of time, everyone did not talk about this project anymore, but started to chat about something insignificant.The four players played for two rounds, and they heard Jim O’Neal’s voice starting to call from the side. Several people glanced sideways, then turned their heads to continue the game.

After another ten minutes, Jim O’Neal ended the call, got up and walked to the seat of the card table, threw the project book on the table, covered the central chips and cards, and poured a cup into his cup. The whiskey drank in one go.When the four saw this, they threw down the cards in their hands, ending the game and staring at Jim O'Neal.

"How about? Is the project feasible?" Royd Blackfin waited until Jim O'Neal finished drinking, and first asked a few people about this question.

"If the news is correct, the feasibility of the project is very high." Jim O'Neill put down the cup and said while turning his eyes to the four people on the table. He was obviously refreshed when they heard what they said.

### Chapter Twenty-Five Chapter Heartbeat's True Meaning###

"I just called to confirm that several major operations of Nomura Securities in the past five years have indeed involved internal operations. Including the illegal operations in the acquisition of Powai assets in India, RB International Petroleum Development Co., Ltd. (Inpex), Mizuho Financial Group (Mizuho Financial Group), and Tokyo Electric Power (Tokyo Electric Power) plan to issue internal information leaks, etc.." While talking, Yoshimoto O'Neill held a wine glass, picked up the plan in one hand, and flipped into it. The part about internal operations.

"Especially for Powai Assets in India. I just called the partners in India and they confirmed the contents of the plan." Yoshimoto O'Neill recounted the content of his repeated calls, and then continued to tell everyone Explain the content of the plan, “Powai Assets of India was originally a financial software development company controlled by Lehman Brothers. Before the financial crisis, its market value reached US$4 billion. After Lehman Brothers declared bankruptcy, this The company’s stock price plunged by more than half. Half a month before Nomura Securities announced the acquisition of the company, the company’s stock price rose by nearly one-third, and then Nomura Securities announced its plan to acquire the company. Indian regulators had previously suspected that Nomura Securities had secretly acquired shares in this company before the announcement of the acquisition plan. There were internal irregularities. However, under the intervention of Nomura Securities, the Indian regulators quickly withdrew the investigation."

"As for Nomura Securities’ violations in other aspects, judging from the consistency between the details described in the plan and the information provided by the Indian side, it should be very likely to be true. I have arranged for personnel to confirm these news. I can receive a reply tomorrow.” Jim O’Neill’s tone was also a little excited. He was not excited about being able to retaliate against Nomura Securities. He was excited about the huge profits brought by shorting Nomura Securities.

"Can you collect specific evidence?" Royd Blackfin's complexion was a little ruddy. He didn't know if it was the reaction from the whiskey he just drank, the reaction to Jim O'Neill's words, or both.

"It's very easy. The Indian side said that someone in the regulatory agency can provide written documents." Jim O'Neill responded positively.

"Very good! Peter, call the company and let them notify the executive directors of the meeting tonight." Royd Blackfin snapped his right hand, stood up and pointed to Peter Johnson.In his opinion, there is no need to wait for the exact news to come. India alone is enough for Nomura Securities to drink a pot.

"You follow me to the company. I guess you will be staying up tonight." Lloyd Blackfin picked up the coat on the coat rack and put it on, then turned to the four people behind and shouted excitedly, "Guys, get excited, we have to tonight. Do a big vote."

The other four people were already ready to get up and go out. When they heard that Royd Blackfin was about to convene executive directors for a meeting, they already knew that if there were no accidents, this project would soon enter the substantive level of operation, and it would It was CEO Royd Blackfin personally presided over.

In the Big Apple City in the twilight, the executive directors of Goldman Sachs Group flocked to Fifth Avenue from bars, nightclubs, hotel beds, warm arms and various places after the call.Flock to the corpse like a jackal.

………

Just as Goldman Sachs was excited about the new project, Miyazaki Sosuke was preparing for the listing of "Eternal Sleep".Regarding Nomura Securities' plan, Miyazaki Aosuke knew that he had nothing to do with him since it was handed over. All he needs to do is to wait quietly for Ken Watanabe to step down.

The plan was completed by Aosuke Miyazaki and Hill who spent three days in the room of the Park Hyatt Tokyo. As for how much time is for work and how much time is for indulgence, no one knows.All I know is that when Miyazaki bid farewell to Hill and walked out of Park Hyatt's door, his face was as sluggish as a drained SpongeBob.

The news of the internal operations of Nomura Securities was provided by Atsushi Yoshikawa. He also has an identity as the in-laws of the Fukuda family. Although they are far away in-laws, the relationship is about to involve Fukuda’s generation of people during World War II, but Atsushi Yoshikawa Still happily disclosed the internal operation information of Nomura Securities to Aosuke Miyazaki, because for him, only if the top has stepped down, he has room for improvement, especially because of his relationship with the Fukuda family, as long as Ken Watanabe After he and his cronies step down, the board of directors is happy to choose a person close to the Liberal Democratic Party to enter the leadership.

As for Nomura Securities’ losses due to Goldman Sachs’ short selling, what does this have to do with Atsushi Yoshikawa?Isn't all this the fault of the leadership headed by CEO Kenichi Watanabe?

Although RB companies pay attention to the fault of the boss is the fault of the subordinates, and the credit of the subordinates is the credit of the boss, it is only limited to the general business faults within the company, and does not include the occurrence of major strategic errors.