Then, he said, “The current situation is very critical. I have communicated with the team in Washington. We agreed that the financial turmoil triggered by the subprime market is inevitable.
“And this…”
“Was caused by that man from Somerland.”
Greenspaner’s tone sounded a little
complicated and angry at this time.
“This person will become the enemy of the United States.
“But!”
Greenspaner suddenly raised his voice. He said, “Every one of you here is not innocent. Couldn’t you see the risk in the subprime market?
“You have seen it a long time ago and you are even the instigators of this huge risk. However, you didn’t care, all you see are the huge profits and benefits. You didn’t expect this day to come so soon.
“What I’m saying is, since sacrifice is inevitable, then our enemy must pay the price.”
Greenspaner opened the folder in front of him and said in a deep voice, “Now as the chair of the Federal Reserve, I’m making the following decision.
“First, the Federal Reserve will inject capital into the two major investment banks, Mayland and Colossal, in the form of capital purchases to ease the huge pressure brought on by the debt caused by the subprime market.”
When the first decision was mentioned, Dugg could not sit still anymore. He suddenly opened his mouth and said anxiously, “What about Layman? Layman’s debt is the most serious among them. If we are forced to repay it, it will be enough to make Layman go bankrupt instantly. Are the Fed not going to consider injecting capital into Layman?”
Greenspaner seemed to have expected
Dugg to react like this. He was expressionless while the others looked at Dugg with pity.
They knew when Greenspaner said that
sacrifice was inevitable, that this sacrifice
would be Layman.
“Mr. Dugg.”
Janet, the vice-chair sitting next to Greenspaner, said, “The debt of Layman Investment Bank is too large, and the authority of the Federal Reserve is not unlimited. Moreover, this is the opinion given by the top strategy team in Washington, so I recommend that you seek your own solutions in the capital market.”
Dugg snapped furiously, “The capital market? You mean finding a buyer out there and selling Layman, right? Who would want to come up with tens of billions of dollars to save Layman right now?
“If you don’t inject capital into Layman, once Layman collapses, it will become the largest investment bank to go bankrupt in the history of the United States. You will b e the ones creating a black mark in the financial history of the United States!”
Janet said calmly, “Layman Investment Bank has total assets of 130 billion US Dollars, but 60% of the assets were used t o invest in the subprime market, and it’s the largest single investor in the United States subprime market.
“You have made at least 80 billion US Dollars from this market over the past ten years. According to our assessment, once the subprime market collapses, Layman’s debt will soar to more than 200 billion US Dollars.
“Either find private capital to buy
Layman, or go bankrupt. There is no other
way.”
Janet’s words caused Dugg to turn pale
and he fell back into his chair. He wanted to
o say something, but when he saw
Greenspaner’s cold gaze, he swallowed
his words..
Now, Greenspaner said slowly, “Second, the Federal Reserve will invest in the acquisition of all credit loan products in the subprime market, with a conversion rate of 0.35, which means the Federal Reserve will contribute 35 US Dollars to
purchase all debts of 100 US Dollars.
“For this reason, the Federal Reserve will prepare 300 billion US Dollars for the implementation of this plan. This money will enter the market immediately after the opening tomorrow.”
