New Employees With an Annual Salary of 1 Trillion Won - Chapter 129

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 129. Indulgence (3)

The US Federal Reserve convened an emergency meeting.

It was a gathering to prevent market chaos triggered by the 9/11 terrorist attacks.

The meeting was attended by major US banks as well as Advisor Karl Rove.

Originally, private funds couldn’t participate in such meetings, but we were specially invited at the government’s request to supplement private funding capacity.

“To prevent financial market instability caused by this terrorist attack, the Federal Reserve will immediately lower the federal funds rate. We will also provide near-unlimited liquidity to ensure the interbank payment system doesn’t stop.”

The Federal Reserve Chair began the meeting with a major announcement.

Near-unlimited liquidity supply essentially meant pouring money into major banks, and naturally, the bank representatives had no reason to object.

“We agree with the Fed’s decision. We will all work together to overcome this crisis.”

“There isn’t much time. The stock market opens again next week. But massive short-selling forces are already dominating the field. We cannot let the market crash as they desire.”

Advisor Karl Rove spoke up.

As someone influential enough to be called the White House’s second-in-command, his words carried substantial weight.

However, the Federal Reserve Chair actually raised his voice in response to Karl Rove’s statement.

Since the Fed Chair was called the economic president, he continued speaking in an unhesitating, bold tone.

“What measures is the White House preparing to stabilize the financial markets?”

“The government cannot directly intervene in the markets. Instead, we’re considering indirectly supplying liquidity through private funds. That’s why we invited Mike General Manager from Tiger Fund here today.”

All eyes turned toward us.

Their gazes showed displeasure at the fact that Tiger Fund, merely a fund rather than a major bank, was present.

It was like looking at outsiders, you could say.

To move the hearts of these proud major banks, we had to play all our cards, and the General Manager began appealing with emotion.

“Tiger Fund detected unusual signs in the market several weeks before this terrorist attack occurred. So we prepared related positions. However, we will liquidate all short positions immediately upon market opening and reverse direction.”

The meeting hall stirred.

Since a mere fund claimed to have anticipated the terrorist attack, only skeptical coughs emerged as they found it unbelievable.

In that atmosphere, the General Manager continued with even more emotion in his voice.

“This isn’t a simple position change. Tiger Fund will deploy all our cash and collateral assets entirely for market liquidity supply. Tiger Fund will stand at the forefront in the war against short-selling forces disrupting market order!”

The atmosphere changed considerably.

After Tiger Fund declared we would stake everything, the major banks began listening seriously.

“But this war is impossible for Tiger Fund alone. So please allow us a massive credit line. If we can secure over $100 billion in funds, we can sufficiently break the short-selling forces and defend the market.”

The major bank representatives exchanged glances at tremendous speed.

Since no one could step forward first, they were passing the burden to each other.

To capture the hearts of the still-hesitating major banks, Advisor Karl Rove stepped up this time.

“To secure over $100 billion in funds, a syndicated loan appears necessary. Each bank must share in raising the funds, and we hope you’ll serve as lead arrangers.”

A syndicated loan was a lending structure where multiple banks participated jointly.

Whenever major construction projects or large financial crises occurred, multiple banks would join forces to proceed with syndicated loans.

Since it was a structure where burdens were shared, the major banks seemed more comfortable than before.

But they were still hesitating without making a decision.

So Advisor Karl Rove presented them with a carrot.

“Participating banks can receive priority support for various tax benefits and regulatory relief from the White House and Treasury Department. And the White House will monitor this situation to the end. …We will never tolerate Tiger Fund collapsing and shaking the market.”

It didn’t directly mean the White House would provide guarantees.

But it was tantamount to indirectly promising guarantees, and could be interpreted as the White House backing Tiger Fund.

Then the major banks began showing reactions.

While the cause of market stability was important to them, ultimately profitability was more crucial.

“How will the interest rate be set then?”

“Since this is for market stability, high interest rates won’t do. We’d like the loan to proceed at around 4%.”

“The interest rate is too low compared to the risk.”

“The market is about to collapse and you want to charge high interest? Shouldn’t we be different from the short-selling forces trying to profit from terrorism?”

Advisor Karl Rove scolded the major banks using public interest as justification.

The major banks couldn’t resist since they knew well how serious this terrorist attack was.

Having wielded the stick, it was time to offer the carrot again.

Advisor Karl Rove began dangling the prepared carrot.

“Banks participating as lead arrangers will receive priority in public fund allocation, and we’ll even promise partial corporate tax rate reductions.”

The major bank representatives’ eyes moved busily again.

This time, rather than exchanging glances with each other, their pupils seemed to roll as they operated calculators in their heads.

Actually, there was nothing to calculate.

4% interest rate with tax benefits, regulatory relief, and even public fund support.

There couldn’t be sweeter conditions. Moreover, if it was a loan essentially guaranteed by the White House, participating was unconditionally profitable.

“Goldman Sachs will participate as lead arranger.”

“We’ll participate too.”

Starting with Goldman Sachs, then Morgan Stanley.

All major banks attending the meeting hoped to participate as syndicated loan lead arrangers.

The Federal Reserve Chair, who had been quietly observing this scene, added concluding remarks.

“The Fed fully supports these measures for financial market stability. And we will immediately cut the federal funds rate by 0.5 percentage points. If necessary, we’ll implement additional cuts. Also, we’ll begin near-unlimited liquidity supply starting today. Today’s resolution in this room will defend America’s financial markets!”

Applause erupted at the Federal Reserve Chair’s statement.

The White House, the Fed, and even the major banks.

Since everyone supported Tiger Fund’s plan, we could now move according to our desired plan.

***

During the remaining time, we went around to the major banks.

We succeeded in obtaining massive loans using all our assets as collateral, and Tiger Fund’s operating capital had swelled to over $100 billion.

“You raised $100 billion in just one week.”

“It was possible because of the White House’s guarantee. And also thanks to transparently disclosing and using all our assets as collateral.”

“We did put up all assets as collateral, including headquarters assets and Korea Branch assets.”

Not only US IT company shares.

We used Nexfin, Rollbook, and even the Semiconductor Division as collateral.

Even though the White House provided guarantees, banks still needed minimum safety measures, so it was an unavoidable choice.

“There isn’t much time left before the New York Stock Exchange opens.”

“A massive crash will occur immediately upon opening. Let’s first liquidate our short positions, then immediately switch positions.”

One week since the 9/11 terrorist attacks.

All of America was still gripped by fear and anxiety, and the stock market was the same.

Hyenas trying to profit from this crisis were already dominating the field.

“We hear rumors that various financial firms will establish massive short positions immediately upon opening.”

“Not just America. Financial firms from countries worldwide won’t want to miss this opportunity.”

“It’ll be quite a tough fight.”

“Still, if the US government and Fed step up, it becomes a fight we can sufficiently win. Branch Manager, you think so too, which is why you suggested the position change idea, right?”

I was already predicting the situation through the gear structure.

The gears still weren’t operating normally, but they were gradually meshing together.

If various conditions aligned well, we could not only win this war but also generate massive profits.

“We have sufficient chances of victory. But the return rate will vary greatly depending on when we deploy the $100 billion.”

“Of course we can’t pour it all out from the beginning. Initially we should defend passively, then inject funds each time stock prices drop significantly. And headquarters has a team that specializes in such work and has already established strategies.”

We had already fought wars against short-selling forces.

Compared to the IT bubble collapse, the current situation was actually better.

We had massive funds and had secured solid backing from the White House and Fed.

“The market has opened now.”

“Let’s just watch for a moment first.”

There was no need to move hastily.

We just needed to unload our short positions today.

So we observed the market briefly and soon faced a scene like red rain pouring down.

“As expected, the stocks we anticipated are crashing.”

“Especially airline stocks have already dropped over 10%. A 20-30% decline today is possible.”

“Travel and insurance stocks will also drop around 20%.”

Our short positions totaled $20 billion in scale.

I concentrated 50% on airline stocks, allocated 30% to insurance stocks, and 20% to travel stocks.

“If we just liquidate before the market closes today, the return rate would be about 25%.”

“Then that means over 5 billion dollars in profit would be generated in just one day. If we had held onto it for a week, profits of over 10 billion dollars would have been possible.”

Getting greedy for 10 billion dollars in profit could have torn our immunity to shreds.

And for greater profits, it was worth giving up the short selling gains.

“If we can devour the short selling forces in reverse, profits of over 50 billion dollars, not just 10 billion, would be possible.”

“It’s right to bet where the stakes are high. Let’s first figure out how many forces are participating in this gambling table.”

Today was a reconnaissance battle.

We observed the market and grasped the flow.

Based on market trends and information coming in from various places, we drew up our picture.

“A report has come from the lead underwriter. It says four major US hedge funds have jumped into short selling. It also includes content that airline stock lending balances have exceeded five times the usual amount.”

“Being on the same side as major banks has this advantage. We don’t need to collect information. It comes to us automatically.”

“But besides hedge funds, there seem to be quite a few other forces as well.”

Information within the United States was provided by major banks.

And overseas information could be received through government channels.

“Looking at the report from the White House, it says London-based funds and Hong Kong funds are concentrating on airline stock short selling.”

“There appear to be at least eight packs of hyenas.”

“If we add the smaller hyena packs, there would be at least dozens of places.”

Hyenas flocked from all directions.

They mercilessly devoured the US stock market, and the Dow index began falling at a rapid pace.

“Today seems like it will be recorded as a historic day. This is the first time the Dow index has fallen this quickly.”

“It’s much faster than during the IT bubble collapse. It could fall 7% in just one day.”

This was why the White House and Federal Reserve were concerned.

If record-breaking drops occurred day after day, the US stock market would suffer wounds that would be difficult to recover from.

Of course, it wasn’t weak enough to collapse from taking hits for just one day.

That’s why we also just watched quietly today.

“Now we should gradually begin liquidation work. Let’s start going into full defense from tomorrow.”

“I’ll continue monitoring the market situation.”

The red rain didn’t stop until the market closed.

There was no umbrella to avoid the rain, no space to hide our bodies visible anywhere.

However, the situation would be different starting tomorrow.

Tiger Fund would unfold a massive umbrella worth 100 billion dollars to create a shelter.

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