Golden Spoon Investment Portfolio - Chapter 201

—————
This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
—————

201. I’m already looking forward to seeing what kind of expression I’ll make when that call comes through from Washington.

[Major Listed Companies Including Nissan Motor Report Massive Currency Derivative Losses
Starting with Nissan Motor’s disclosure of hundreds of millions of dollars in derivative trading losses just days ago, major export companies like Sony and Mitsubishi have been revealing their own foreign exchange losses, causing significant ripples through the market.
The companies had entered into currency option contracts to hedge foreign exchange risk, but as the yen, which had surged sharply at the beginning of the year, plummeted over recent months, it resulted in catastrophic losses.
The currency option products these companies had purchased were structured so that if the exchange rate fell below the lower bound of the anticipated range even once, the option contract itself became void. However, if it breached the upper bound even once, they were obligated to purchase over four times the contract amount in dollars and sell them at the pre-agreed exchange rate.
With confirmed losses already exceeding 1.5 billion dollars, it is known that numerous companies have yet to disclose their damages, suggesting that the total scale of losses will grow even larger.
In response to this situation, the Ministry of Finance, the relevant government body, has expressed serious concern about the companies’ losses….]

“Minister. Vice Minister Okawara has arrived.”

At the Female Secretary’s words, Sato Kazuya, a three-term member of the House of Representatives serving as Minister of Finance, set down the newspaper in his hand and spoke.

“Show him in.”

Moments later, Vice Minister Okawara, dressed in a gray suit, entered and bowed respectfully.

“You called for me.”
“Have a seat over there.”

Minister Sato, who had been sitting on the sofa, leaned back and gestured with his chin toward the seat on his left.
Seeing his clearly displeased demeanor, Vice Minister Okawara approached cautiously and sat down on the sofa.
Glancing at the newspaper lying on the table, he immediately understood why Minister Sato was in such a foul mood.

“What exactly are you doing?”

At his distinctly irritated tone, Vice Minister Okawara hung his head like a guilty man.

“The media is making a fuss about this, so why are you dragging your feet instead of resolving it quickly!”

As Minister Sato rebuked him in a loud voice, Vice Minister Okawara responded with an awkward expression.

“We have summoned and investigated the Eldorado Fund representatives who sold the problematic currency derivatives, and we have carefully reviewed the contracts to ensure there are no unfavorable toxic clauses, but….”
“However!”

As he pressed forward with his gaze, Vice Minister Okawara, constantly reading the room, reluctantly opened his mouth.

“…I was unable to find any significant issues with the contract.”
“What?”

Sato Kazuya’s eyebrows shot upward as he brought his palm down hard against the armrest of the sofa, his voice erupting in a furious shout.

“That’s absolute nonsense! The corporations suffered massive losses, and you’re telling me there wasn’t a shred of deception involved?”

Okawara, meeting the minister’s glare, wiped the perspiration from his palms onto his trousers and answered with difficulty.

“I’ve reviewed the contract multiple times, and there are no clauses that could be considered toxic provisions. In fact, some of the terms were quite favorable to the corporations that entered into the option contracts.”
“Really? You’re certain?”

Sato Kazuya pressed the matter again, his disbelief evident.

“Yes. For example, the fluctuation range was set quite broadly—from 78 yen to 100 yen per dollar—and the experts who reviewed the contract agreed that the terms were considerably advantageous to our domestic corporations.”
“Then why did this disaster occur?”

With such favorable conditions, the situation made even less sense.
As Sato Kazuya furrowed his brow, Okawara hastened to explain.

“Until last April, when the yen surged past 80 to the dollar under the assault of hedge funds and climbed with terrifying momentum, no one anticipated such a sudden and dramatic shift in exchange rates.”

Sato Kazuya’s face twisted involuntarily as he recalled the ordeal inflicted by what was being called the Second Tokyo Air Raid—the indiscriminate currency assault led by George Hamilton’s Quantum Fund and the hedge funds aligned with it.

“Damn it all.”

Sato Kazuya let out a groan of anguish.
Watching him, Okawara waited a moment before cautiously broaching the subject.

“Under the current circumstances, we lack sufficient grounds to impose sanctions on the Eldorado Fund.”

Sato Kazuya clicked his tongue and looked at him with disdain.

“So with public opinion already in such poor shape, I’m supposed to tell the people that this disaster occurred because corporations were greedy enough to enter option contracts and the cabinet mismanaged the exchange rate?”
“That is….”

With the cabinet’s approval ratings already at rock bottom, such an explanation was impossible.
Sato Kazuya furrowed his brow and crossed one leg over the other as he spoke.

“Regardless of the contract’s terms, the public doesn’t concern themselves with such details. But they believed that export companies were thriving due to the weak yen. If they discover that hard-earned profits are being siphoned away elsewhere, naturally their anger will boil over, won’t it?”

He tapped the armrest of the sofa irritably as he continued.

“So where do you think that anger will be directed? Naturally, they’ll curse the cabinet and the Ministry of Finance, the department responsible!”

Okawara could not bring himself to raise his bowed head.
Sato, having calmed the roiling indignation within him, straightened his posture and spoke in a measured tone.

“When you comb through everything meticulously, you’ll inevitably find something to pin blame on. And even if you don’t, it doesn’t matter—conduct a rigorous investigation into the Eldorado Fund and show the public that we’re doing our job properly!”

Then his eyes gleamed with contemptible intent as he continued.

“Of course, if we happen to discover illegal activities during the process that could nullify the options contract or at least reduce damages, that would be even better.”
“…!”

Okawara’s head snapped up in alarm.

“The Eldorado Fund is American-backed. If we’re not careful, this could escalate into a serious problem.”

Unlike his worried counterpart, Sato snorted dismissively.

“It doesn’t matter. Even if it’s an American fund, investigating illegal activities is our legitimate right. If the United States protests over that, that would be overreach and interference in our internal affairs.”
“Of course, that’s true, but….”

Okawara trailed off, unable to hide his discomfort.
No matter how he thought about it, an ominous feeling would not dissipate.

“It hasn’t been long since we suffered humiliation at the hands of that cursed George Hamilton, and if our domestic companies are made fools of by foreign hedge funds again, how will the public view the cabinet and the Ministry of Finance? And how will foreign hedge funds regard our Japan?”
“….”
“So we need to teach them a harsh lesson so they never dare attempt such things in Japan again. Do you understand what I’m saying?”

Sato clenched his fist and stared at him intently.
With his resolve already hardened, Okawara reluctantly nodded.
Though lingering doubts remained, there was no way to dissuade the minister once he had taken this stance.

“Yes. I will proceed as you’ve instructed.”

Sato then relaxed, his expression satisfied.

“Still, if friction arises with the United States Government, it will be problematic. Handle the American staff as gently as possible and proceed with the investigation.”

It was a contradictory directive—first demanding he dig up every possible fault, then cautioning him not to provoke the Americans too much.

‘This is absurd.’

But orders were orders, so Okawara suppressed a deep sigh and replied.

“Understood.”
“Then go out immediately and execute the instructions.”
“Yes.”

Okawara rose from his seat, bowed respectfully, and left the minister’s office without another word.
Once the door closed, Sato Kazuya loosened his tie knot with one hand and leaned back against the sofa with a grunt.

“I already have enough to worry about, and if I’m going to do currency hedging, I should do it properly. This is truly irritating.”

* * *

The next day.

“Process it as instructed.”
“Yes, Director.”

Na Seong-mi, my secretary, received the approval documents and left.
Once the pile of accumulated work had been handled to some degree, I rolled my head side to side, loosening my neck gently.

“I’ve skipped the gym for several days due to the rush. My body feels stiff.”

Just as I was considering whether to make time for the fitness center, my phone rang in my pants pocket.

[Boss. It’s Landon Shore.]

His voice was tight, as though he’d just woken up. I glanced at my wristwatch reflexively.

“It must be the middle of the night in New York. What’s the matter?”
[I just received an urgent call from our Japan branch. Ministry of Finance Supervision Bureau staff suddenly raided the office, conducted a search, and confiscated various documents and computers.]

My drowsy expression vanished instantly as I heard the news, my eyes widening.

“Is that really true?”
[Yes. Not only that, but Porter and all the other staff members have been banned from leaving the country.]
“Damn.”

I clicked my tongue sharply.

“I was hoping we could slip through this quietly. But as I expected, once public opinion started stirring, the Japanese Government decided to apply pressure.”
[I share that assessment.]
“During the office search, there weren’t any significant conflicts with the other side, correct?”
[Correct. As you instructed, we didn’t obstruct the search and cooperated fully. Of course, we’ve already moved or destroyed all important documents, so even if they sift through the seized materials, there won’t be much for them to find.]

Because we had prepared in advance, neither of us panicked at the sudden search and seizure. We responded calmly and methodically.

[We’re also planning to file a formal protest with the Ministry of Finance through the major Law Firm we have on contract regarding this search and seizure.]

I replied with an indifferent expression.

“It’s better than doing nothing, but I wouldn’t hold out much hope.”

I knew all too well Japan’s aggressive xenophobia—the discriminatory treatment and double standards applied to foreigners in contrast to domestic corporations and businessmen.
The bubble had burst, but the shadow of Japan’s glorious past as the world’s leading economic power still lingered, keeping the discrimination from being too blatant.
However, as time passed and the quagmire of recession and stagnation deepened, the envy and resentment toward foreigners and foreign companies achieving success in Japan grew fiercer, and discrimination became increasingly overt.

‘In the future, a French automobile company chairman will be arrested on charges of breach of fiduciary duty and embezzlement, suffer for over a year, and eventually make a dramatic escape by hiding in a musical instrument case.’

Thinking of such things, I couldn’t be confident that the Eldorado Fund’s Tokyo branch staff would receive fair investigation and treatment.

‘How desperate must that French chairman have been to hold a press conference himself and pour out his grievances.’

His declaration that he would no longer be a hostage to Japan’s unjust judicial system, where guilt was presumed and discrimination ran rampant while basic human rights were ignored—that scene had been shocking to many.
Moreover, with Nissan Motor and other major Japanese export companies suffering tens of billions of dollars in foreign exchange losses, and public opinion turning sour, there was a strong likelihood that the Japanese Government and judicial authorities would pressure Eldorado Fund with even more coercive and biased tactics.

‘I can’t let that happen.’

Clearing away the stray thoughts, my eyes gleamed with sharp resolve.

“Don’t hesitate. Play the ace card right away.”
[Understood. I’ll contact Vincent as soon as dawn breaks.]
“Good. Let me know immediately if the situation changes.”
[Yes.]

After ending the call, Seok-won set down his phone and leaned back in his seat.

“I’m already looking forward to seeing what expression they’ll have when they receive a call from Washington while trying to blackmail us.”

Seok-won curled up one corner of his mouth and murmured softly to himself.
It was a shame that he wouldn’t be able to witness such a delightful spectacle firsthand.

—————
This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
—————