Golden Spoon Investment Portfolio - Chapter 457

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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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457. He said he borrowed it from somewhere else.

The next day.
On the 10th Floor of the New York Federal Reserve Bank’s Conference Room, Chris Murphy and the heads of Wall Street banks gathered once again, just as they had the day before.
The meeting, which had resumed early in the morning, continued late into the afternoon with lunch delivered in, never pausing for a break.
Beneath the watchful gaze of portraits of past New York Federal Reserve presidents lining the walls, the Wall Street bank executives slouched in their chairs like drained batteries, their physical and mental reserves completely exhausted.
Some adjusted their glasses, others scribbled absently on papers before them, and many rubbed their foreheads with their fingers—all bearing unmistakable signs of fatigue and exhaustion.
It was only natural they were worn out, having endured a marathon of meetings for nearly two days straight.
Meanwhile, they repeatedly stepped away from the table to take calls with executives in the hallway or in an empty room nearby, and as time wore on, the faces of the Wall Street bank heads grew increasingly haggard.
Everyone agreed on one thing: to prevent LTCM’s bankruptcy and thereby prevent the entire market from collapsing.
The problem was who would bear how much of the necessary four billion dollars, and fierce debate raged over that question.
Chris Murphy proposed that the sixteen participating banks each contribute two hundred fifty million dollars equally, but he was immediately met with opposition.
Foreign banks, including Societe Generale, insisted they could not contribute more than one hundred twenty million dollars, while Lehman Brothers, JP Morgan, and Goldman Sachs all tried to reduce their contributions.
Bear Stearns went even further, declaring they would not participate in the rescue package at all, which gave Chris Murphy a headache.
However, if even one institution withdrew, the entire coalition could collapse, so Chris Murphy employed every tactic he could to coax and persuade the bank heads into contributing the funds.
Chris Murphy, who looked as though he had aged ten years in just two days, spoke in a hoarse voice as he gazed at the bank executives seated around the conference table.

“Ultimately, eleven banks will each contribute three hundred million dollars, and combined with Lehman Brothers and the remaining banks, we will raise three billion six hundred twenty million dollars. We will then combine this with LTCM’s remaining assets to cover the shortfall. If anyone has objections, please speak now.”

All the participants wore expressions of dissatisfaction.
However, with the market’s fear growing by the moment, there was no longer any room to delay, so they reluctantly nodded their heads or sat in sullen silence with their lips sealed.
Chris Murphy, who had remained anxious until the very end, finally let out a small sigh of relief as no objections came forth, as though he had cleared a major hurdle.

“We will establish a separate corporation representing the fourteen banks participating in this rescue package and, in exchange for investing the collected funds, will receive a ninety percent stake in LTCM. The existing fund shareholders will retain the remaining ten percent, and we will strictly control operations and management to ensure such a crisis never occurs again.”

Chris Murphy continued speaking, holding the paper with the agreed-upon terms.

“Finally, the consortium will be maintained for a minimum of three years, during which time Wiseman and other LTCM partners will manage the fund without any additional bonuses.”

Chris Murphy set down the paper and looked around at the assembled participants with a serious expression.

“I trust you all agree to this, and I ask that you each sign accordingly.”

Chris Murphy then signed his name on the agreement first and slid the paper toward Fuller, the Bear Stearns chairman, who sat to his left.
Fuller, sitting with his arms crossed, looked down at the agreement with a sullen expression, and just as he reluctantly picked up his fountain pen to sign, someone’s voice suddenly interjected.
It was Joseph Saluchi, the Goldman Sachs chairman.

“May I say a few words?”

With only the final signing procedure remaining, Chris Murphy’s chairman furrowed his brow at Joseph Saluchi’s sudden interjection.
Though he wanted nothing more than to ignore him, he couldn’t afford to do so, so Chris Murphy’s chairman regarded him with a cold gaze and spoke.

“Go ahead.”
“There is another way besides our involvement.”

The attendees stirred, their expressions turning bewildered.

“What do you mean now….”
“Another way?”

Rather than letting a done deal slip through his fingers, Chris Murphy’s chairman made his displeasure evident, his voice sharp as he pressed for clarification.

“What are you talking about?”

Joseph Saluchi ignored the piercing gaze and replied with composure.

“I’ve heard that Gavin Phillips, chairman of Berkshire Hathaway, is interested in acquiring LTCM.”
“…!”
“If Chairman Phillips is involved, wouldn’t that be trustworthy given his financial capacity?”

At Joseph Saluchi’s words, the attendees immediately brightened, their demeanor shifting to one of welcome.

“That’s right!”
“If Chairman Phillips steps forward…”

If Berkshire Hathaway acquired LTCM, the burden they would have to bear would vanish—there was no other way to see it.
Chris Murphy’s chairman regarded Joseph Saluchi with an irritated gaze.
If such a matter existed, he should have mentioned it beforehand, but bringing it up now, as if trying to upstage him, left a bitter taste.

“Is that a fact?”

Joseph Saluchi nodded with an unpleasant expression.

“Yes. I’ve heard that he will be sending an acquisition proposal to LTCM shortly.”

At that, Fuller, who had already been reluctant about putting up the funds, quickly chimed in.

“If Berkshire Hathaway intends to acquire LTCM, there’s no need for us to step in, is there?”
“Quite right. In fact, it would be better for them to handle the cleanup afterward.”
“I share that sentiment.”
“It would be far more efficient for one entity to assume responsibility rather than having multiple parties involved.”

Everyone nodded in agreement, eager to extricate themselves from this troublesome affair, and Chairman Gavin Phillips stepped forward to endorse the acquisition of LTCM.
As the painstakingly negotiated consensus seemed to unravel, Chairman Chris inwardly clicked his tongue.
He wondered why they had bothered with two days of meetings if this was how it would end.
Chairman Chris raised his voice to call for order.

“We haven’t confirmed whether Chairman Phillips truly intends to acquire LTCM, and moreover, he could present an unreasonable proposal. Regardless, we will proceed with the existing agreement as planned.”
“But what if Berkshire Hathaway does attempt an acquisition?”

As Chairman Fuller raised the objection, Chairman Chris’s eyes narrowed slightly as he replied.

“If their proposal is more favorable than what we’ve prepared and LTCM desires it, I will grant Berkshire Hathaway priority.”

Chairman Chris wanted to resolve the LTCM problem through the existing plan of coordinated banking action.
But with an alternative now on the table, pushing through unilaterally would invite fierce resistance—that much was obvious. So he offered this compromise.

“Well then, that’s acceptable.”

Fortunately, Chairman Fuller relented without further insistence, and the other attendees nodded in agreement.
Chairman Chris felt inwardly relieved and resumed the procedure that had been briefly suspended.

“Then let us complete the signatures.”

Chairman Fuller picked up the fountain pen he had set down and inscribed his name on the agreement.
The other attendees followed suit, signing in turn, and the agreement was finally completed.

“Finally, it’s done.”
“Absolutely exhausting.”
“What a mess LTCM has made of this. Tsk.”

As everyone rose from their seats, worn out from two days of tedious meetings, Chairman Chris approached Chairman Saluchi and spoke to him.

“Let’s have a word, shall we?”
“Of course.”

The two men exited the conference room and entered an empty room adjacent to it.
As the door closed, Chris Murphy’s face hardened into a rigid mask.

“I thought we were cooperating together, but it seems that wasn’t the case.”
“Is this about Chairman Gavin Phillips?”

Joseph Saluchi responded in a smooth, measured tone.

“If something like that were happening, you should have given me advance notice instead of suddenly bringing it up and catching me off guard!”
“I apologize for that. However, I only heard about it moments ago, so I didn’t have the opportunity to inform you beforehand.”

It was obvious to anyone that he was lying, but Chris Murphy knew that losing his temper further would only make him look worse. He fixed Joseph Saluchi with a cold, piercing gaze and issued a warning.

“I’ll let it slide this time, but if you stab me in the back again, I won’t be so forgiving.”

Without waiting for a response, he turned and walked past Joseph Saluchi, opening the door and leaving.
Joseph Saluchi turned his body, narrowing his eyes as he watched the door through which Chris Murphy had just departed.

* * *

LTCM Headquarters in Greenwich.
The luxurious new building, relocated at the end of last year, was shrouded in a heavy, tomb-like silence.
With massive losses mounting from today’s continued market collapse, the fund’s remaining assets were now worth only five hundred and fifty-five million dollars.
Beyond the expansive floor-to-ceiling windows, a crimson sunset was descending as Jacob Wiseman sat before his mahogany desk, his face gaunt as if he hadn’t slept in days.
Shadows of exhaustion and despair lay thick beneath his disheveled hair and the deep lines around his eyes.
Papers detailing today’s losses lay scattered haphazardly across the desk, and beneath a half-empty glass of Underberg, a damp ring marked where it had sat.
Wiseman drew out a cigarette, placed it between his lips, and retrieved his lighter to ignite it.
The white smoke he inhaled deeply and exhaled slowly dispersed into the air as futilely as his life itself.
Everything he had built over years was crumbling in an instant, and the weight of it pressed down upon his chest.

“Damn it.”

As he uttered a final curse, recognizing that the moment of final reckoning had arrived, his mobile phone rang loudly from where it lay nearby.
When Wiseman picked up the phone to answer, an unexpected voice came through from the other end.

[Day rate. Phillips.]
“…!”
[You must have much to consider, so I’ll keep this brief.]
“….
[I’ll send you the acquisition proposal shortly. I expect your answer by 8 o’clock.]

Without waiting for a response, he hung up, and Wiseman’s face twisted in anguish at the dial tone.

“Completely arbitrary old man.”

Just weeks ago, he had requested investment only to be coldly rejected, and now an acquisition proposal appeared out of nowhere—it was absurd, infuriating. The sensation of a hyena circling, waiting for him to bleed out before moving in for the kill, made his mood even worse.
Yet the reality was that the fund could no longer sustain itself, so he harbored a faint hope about what kind of proposal might be offered.
Just then, an employee knocked and entered, lowering his head with an uncertain expression.
An employee knocked and entered, then lowered their head while gauging the mood in the room.

“Hand it over.”
“Give it here.”

Once the employee left, Wiseman took a deep breath and reviewed the contents.
As the employee who handed over the fax left his seat, Wiseman took a deep breath and checked its contents.

Desired Purchase Price: $250,000,000 USD
Berkshire Hathaway, AIG, and Goldman Sachs will jointly acquire 100% of the fund’s shares and additionally invest $3.76 billion as operational capital.]
Berkshire Hathaway, AIG, and Goldman Sachs will acquire 100% of the Investment Fund’s shares and additionally invest $376 million as operating capital.

“Huh.”

A fund that had been worth $4.7 billion just weeks ago was being swallowed whole for a mere $250 million—it was no wonder.
It made sense that they would be upset, since he was saying he’d swallow up an Investment Fund that was worth 4.7 billion dollars just a short while ago for a mere 250 million dollars.

“No matter how cornered I am, this isn’t it.”

That alone was infuriating enough, but Gavin Phillips had cunningly given him only one hour to think, ensuring he couldn’t find another bidder.
It was nothing short of highway robbery, and Wiseman ground his teeth in frustration.
Wiseman couldn’t help but grit his teeth at the act, which was no different from outright robbery.

“There’s no need to think about it any further.”

Wiseman immediately crumpled the proposal that Phillips had sent and tossed it into the wastebasket on the floor, then picked up his mobile phone and dialed someone.
After several rings, the other party answered, and Wiseman spoke in a voice thick with tension.

“I’m accepting your proposal.”

* * *

Vermont, United States.
On one side of a sprawling ranch nestled in endless verdant meadows stood a grand two-story log cabin.
The floor of the luxuriously appointed reception room, with its soaring ceiling, was covered with buffalo hide from a hunt the previous year.
Within, Gavin Phillips, chairman of Berkshire Hathaway, sat on a plush sofa with Christopher Alexander, founder of Microsoft, drinking beer.
Though their ages differed considerably, the two men shared much common ground and maintained an easy, friendly rapport.
Phillips, his hair neatly combed back and draped in a cashmere cardigan, held a premium Cuban cigar in one hand, its distinctive aroma curling upward as it burned.

“Do you think LTCM will accept the proposal?”

Christopher took a sip of beer and set it down as he asked.
Phillips drew deeply on his cigar and exhaled the smoke slowly, his expression brimming with confidence.

“Whether they like it or not, they’ll have no choice but to accept—they have no other options.”
“That’s certainly true.”

Christopher shrugged his shoulders.

“But given how dire the Russian situation is, won’t acquiring them just be a headache?”

Phillips flashed a white-toothed smile.

“For now, fear grips the market, but time will restore it to its former state. And surely you don’t believe that Russia, with its vast underground resources and nuclear weapons, will simply collapse as things stand.”
“That’s true enough.”
“Even if we forgive some of the interest and principal, we’ll still profit handsomely by acquiring their sovereign debt at bargain prices.”
“Ha ha. You’re truly remarkable.”

At Christopher’s words of admiration, Phillips smiled, the thick cigar resting between his lips.
Just then, the mobile phone on the table rang, and Phillips’s eyes gleamed.

“It seems the call has come through.”

Phillips unhurriedly picked up the phone and answered the call.

“Yes, it’s me. Did we get a response from LTCM?”

Chairman Phillips’s face, which had been asking about the results with a relaxed demeanor, immediately hardened.

“What did you say? Is that really true? Hmm… I understand.”

After ending the call, Chairman Phillips lowered his phone without saying a word.
Sensing something was amiss, Chairman Christopher carefully studied his expression and asked.

“Did something go wrong?”
“Good heavens. This is troublesome.”

Chairman Phillips smacked his lips, his expression showing a tingling sensation at the back of his head.

“Apparently, someone else has already snapped up the Russian bonds.”
“What? Who could that be?”

Chairman Christopher asked in surprise, and Chairman Phillips replied bitterly.

“The Eldorado Fund, apparently.”

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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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