Golden Spoon Investment Portfolio - Chapter 440

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

As the eastern sky blushed crimson and the morning sun rose, dewdrops clustered like jewels on the branches of garden trees sprouting fresh green shoots, catching the early light and gleaming with ethereal brilliance.
Amid the cheerful chirping of industrious sparrows, Park Tae-hong rose early as always and emerged from his bedroom.

“Good morning, Chairman. You’re up.”

Park Tae-hong acknowledged the Gunsan Housekeeper’s greeting with a casual nod as she adjusted her apron.

“Bring me a cup of coffee, would you?”
“Of course.”

Park Tae-hong settled naturally onto the living room sofa and reached for the morning newspaper resting on the table.
The moment he unfolded it, his eyes narrowed upon seeing the front-page headline.

[Donghae Group Chairman Woo Yong-gap: Evidence of Massive Overseas Fund Transfers Before Bankruptcy Exposed; Legal Action Deemed Inevitable]

“Tsk, tsk, tsk.”

As he clicked his tongue at the black-and-white photograph of Chairman Woo Yong-gap standing before the Prosecution’s podium with a grim expression, his wife Jo Deok-rye approached.

“Why are you clicking your tongue first thing in the morning? It’s bad luck.”
“It’s nothing.”

Jo Deok-rye, seated on the opposite sofa, glanced at the newspaper her husband had set down and nodded knowingly.

“I read the article too. They’re saying he’ll likely face detention for questioning this time rather than being released, aren’t they?”
“The evidence Assemblyman Choi Bok-rak exposed is so ironclad that it’s almost certainly what will happen.”
“His company’s already bankrupt, and now he’ll end up in prison too. That’s quite a fall.”
“Hmph! He couldn’t even manage his own company properly, yet he coveted what belonged to others. It’s all of his own making.”

Park Tae-hong snorted dismissively, his tone sharp.
Jo Deok-rye, understanding why her husband was in such a bitter mood, held her tongue and said nothing more.

* * *

April 6th, New York Palace Hotel in Manhattan, New York.
The dozens of journalists gathered in the spacious hall upon receiving the summons were startled to see the executives from Citicorp and Travelers enter together through a side door.

“What? Why is Stanford Powell, the chairman of Travelers, coming in with William Parker Citicorp, the chairman of Citicorp?”
“Right? This seems like something major is happening.”
“Could the two banks be merging?”
“That can’t be.”
“Then there’s no reason for the two of them to be together.”

Amid the murmuring, the journalists instinctively sensed that something significant was unfolding and hastily raised their cameras to snap photographs.

Click, click, click!

Hearing the cacophony of shutters, the two chairmen ascended the podium that had been prepared in advance alongside other executives.
The journalists, having caught the scent of an exclusive story, observed the chairmen’s every movement with eyes gleaming like hawks zeroing in on prey.
With all eyes converged upon the stage, William Parker Citicorp, dressed in an exquisite bespoke suit, stepped before the podium where multiple microphones had been installed.
Then an employee standing at the far left brought the microphone in his hand to his lips and spoke.

“We will now begin the press conference. Please remain quiet.”

Shortly after, the noise gradually subsided, and the hall fell silent.
Only the occasional sound of coughing and the rustling of clothing could be heard as everyone fixed their attention on the podium.
Everyone was curious about what would be announced.
When tension reached its peak, William Parker finally stirred before the microphone.
After drawing a deep breath and exhaling slowly, Chairman Parker met the countless gazes directed at him and parted his lips.

“Today, I have some wonderful news to share with all of you.”

The journalists leaned their portable voice recorders forward so as not to miss a single word, or rapidly moved their pen-wielding hands to transcribe the remarks into their notebooks.

“To adapt to the changing international competitive environment, substantially expand our capital base, enhance the credibility of global investors, and simultaneously provide a more diverse range of financial products and services, the executives of Citicorp and Travelers have agreed to merge the two banks.”

As Chairman Parker announced the merger, the sound of camera shutters erupted loudly once more, flashes burst forth, and commotion ensued.

Click, click, click! Flash!

“Through the newly formed bank, I promise our shareholders and customers that we will demonstrate achievements befitting a leader in the global financial industry.”

As the announcement concluded, the journalists, as if they had been waiting, raised one arm and bombarded the stage with questions.

“When did the merger begin?”
“Doesn’t this announcement violate the Glass-Steagall Act?”
“The regulatory authorities could oppose the merger—how do you plan to address this concern?”

As the hall erupted and reporters surged to their feet like a swarm, Chairman Parker responded with unhurried composure.

“As times change, I believe the Glass-Steagall Act, created sixty-five years ago, must be revised or abolished to suit the present day. Furthermore, we will register Citicorp with the Federal Reserve Board as a bank holding company, so there will be no antitrust concerns as you worry. We will also do our utmost to ensure the merger concludes smoothly.”

It was a seamless response, as though he had anticipated every question beforehand.
The reporters’ barrage of excited questions and Chairman Parker’s answers continued for some time afterward.

* * *

The shocking news of the Citicorp and Travelers merger struck Wall Street immediately, sending both banks’ stock prices soaring.

[Citicorp: 160.23
(↑16.43)]
[Travelers: 69.32
(↑6.57)]

“Woooow!”
“The merger announcement just dropped!”
“Citicorp is up over 11 percent!”
“Travelers has also crossed 10 percent gains.”
“Excellent!”

As news of the merger spread, the Eldorado Fund Trading Floor erupted in cheers as Citicorp and Travelers stock prices climbed furiously.

“Haha! See? The boss was right all along!”

Watching the stock prices surge dramatically, one trader, overcome with excitement, hurled the stack of documents he held high into the air.
White papers scattered like pollen across the floor as other traders embraced one another or clenched their fists, leaping up and shouting with joy, sharing in the triumph.
This bet would net them at least hundreds of millions of dollars in profit—more than enough reason to celebrate.
As the entire Trading Floor transformed into a cauldron of exultation, Landon Shore and Andrew, who had come down upon hearing the news, gazed in admiration at the Citicorp and Travelers stock prices displayed prominently on the massive ticker board mounted before them.

“The boss’s prediction was spot-on again.”
“I thought it would be difficult because of the Glass-Steagall Act, but this is truly remarkable.”

Andrew shook his head with eyes gleaming with admiration.
Landon Shore felt the same way, and as a former lawyer, he understood all too well the enormous risk of announcing a merger before regulations were even changed.
With a merger scale of a staggering 140 billion dollars, if regulatory authorities opposed it and the merger fell through, it could result in massive losses.
Precisely because of this, no one had anticipated the merger, and when the announcement finally came, the market erupted in celebration over the historic deal, sending stock prices soaring.

“When the two banks merge, their combined assets will exceed 700 billion dollars, right?”
“That’s correct.”
“A colossal bank born from 700 billion dollars in assets and a market capitalization of 140 billion dollars… If the merger actually goes through, it truly will be the deal of the century.”
“Without a doubt, it will send shockwaves through the banking industry, which has been stagnant for years.”
“Then other banks will scramble to pair up as well, lest they fall behind and perish.”

As Landon Shore’s eyes sparkled, Andrew nodded and continued.

“Some institutions have likely already begun moving. You can see it just from how other financial stocks are stirring at the news of Citicorp and Travelers merging.”
“Exactly.”

Andrew gazed at Seok-won with renewed amazement at his abilities.
On the Trading Floor, champagne was being popped from who knows where as celebration parties erupted.

“It’s remarkable enough that you predicted this merger, but to have already positioned us in NationsBank and Bank of America in anticipation of the ripple effects that would follow—I can only marvel at how many moves ahead you’re thinking, sir.”

Landon Shore nodded in agreement.

“One thing’s certain: judging by what you’ve shown us so far, you’re operating on a scale we can’t even comprehend.”
“Indeed.”

Landon Shore turned his gaze back to the large ticker board directly ahead.
As time passed, buying pressure intensified, and by the second, Citicorp and Travelers stock prices continued climbing.
Landon Shore’s face broke into a smile, savoring the exhilarating rush of a successful bet hitting the jackpot.
On the first day alone, Citicorp and Travelers stocks surged 25% and 16% respectively, and the upward momentum never faltered in the days that followed.
Other financial stocks were also affected, rising in tandem with merger expectations, and a week later, good news came again from the Waldorf Astoria Hotel in Manhattan, New York.
Bank of America, headquartered in San Francisco, California, with 1,800 branches throughout the western region, and NationsBank, a major bank in the eastern region, announced a surprise merger.

* * *

Seok-won stood before the floor-to-ceiling windows of the living room in a thin knit sweater and cotton pants, gazing at the night view while speaking on his phone with Landon Shore in New York.

[As you’ve likely heard through the media, both the NationsBank and Bank of America boards have already approved the merger, and the new merged company has been confirmed to be named Bank of America.]

It was the birth of the famous Bank of America.

[The moment the merger was announced, both stocks surged over 10% during trading.]
“When the two banks merge, they’ll create the second-largest bank in America with total assets of 520 billion dollars. The expectations are bound to be enormous.”
[Haha, that’s right. Just a week after Citicorp and Travelers announced their merger, this massive merger news broke, and financial stocks are literally ablaze.]

I smiled faintly at Landon Shore’s excited voice and spoke.

“As I mentioned before, banks will continue announcing mergers for survival. This trend will persist for a while.”
[I agree with that assessment.]
“While interest is at its peak, let’s liquidate our positions in Citicorp and Travelers in sequence.”

Landon Shore asked with a puzzled expression.

[Financial stocks are gaining momentum and rising. Isn’t selling now a bit premature in terms of timing?]
“The upward trend will continue a bit longer. But we’ve already made sufficient profits, and more importantly, a much larger opportunity is about to unfold. I’m saying we should wrap this up now.”
[A larger opportunity, you say?]
“Yes.”

When I spoke like this, it was clear that a bet far larger than profiting from the merger announcement’s stock surge awaited us.
Landon Shore felt a mixture of tension and excitement, his voice eager as he asked.

[Then where are you planning to place your bet?]
“Russian bonds.”
[Pardon?]

Landon Shore couldn’t hide his bewilderment at this completely unexpected answer.
And the moment he heard what came next, his confusion only deepened.

“I’m going to short Russian government bonds.”
[!]

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