Chapter 4008 You Are Crazy

Philippe Condit, President of Boeing, continued to talk big, gritting his teeth, and was determined to surpass Airbus, let Abu Dhabi surpass Dubai, and give Lin Feng a good show. And Sheikh Khalifa II also cooperated very well, announcing that he would invest $70 billion to build a "Boeing Theme Park" with Boeing. At the same time, he planned to invest $100 billion in the next five to ten years to create space tourism services, and would introduce more high-tech companies to Abu Dhabi to make Abu Dhabi the most advanced city in the Arab world.

Of course, it is not enough to just promote the capital of science and technology. Condit directly used his connections on Wall Street to let a series of financial investment companies on Wall Street question the transaction between Airbus and Emirates Airlines.

The front page headline of the Wall Street Journal - "Crisis under a perfect transaction! 》In this column, the Wall Street Journal quoted Alex, an analyst who graduated from the Department of Economics at Cornell University and has been engaged in securities trading and capital operations on Wall Street for 20 years, for his comments on this matter - in this transaction between Airbus and Emirates Airlines, it seems that all four parties win, Airbus, Emirates Airlines, Lin Feng, and Dubai are all winners. However, after careful analysis, this seemingly perfect transaction has a huge loophole, that is, the capital operation of Lin Feng's "Second Bank". Can the "Second Bank" bear such a huge capital operation?

After quoting Alex's doubts about the capital operation ability of the "Second Bank", the "Wall Street Journal" later published the economic operation status of the "Second Bank".

The "Second Bank", formerly Standard Chartered Bank, was acquired by Lin Feng. According to market statistics, Lin Feng holds 48.87% of the shares. The current market value of the "Second Bank" is about 42 billion US dollars, and its deposit balance is about 220 billion US dollars! According to the international bank loan-to-deposit ratio regulatory red line, once the bank's loan-to-deposit ratio exceeds 75%. Then the bank will be in a dangerous situation. Once any sudden situation occurs, such as the investment loan cannot be recovered due to the poor operation and bankruptcy of a certain enterprise, there is a high possibility of a run on the bank. Once a run on the bank occurs, depositors withdraw cash in large quantities, and the bank will go bankrupt.

At present, the investment amount of the "Second Bank" in the real estate and business sectors is about 75 billion US dollars. The "Second Bank" cooperates with the "Second World". All members of the "Second World" can use the "Second Bank" to obtain loans to purchase any products under the "Second World". According to the evaluation of the "Wall Street Journal", its annual loan funds are about 35 billion US dollars.

These two types of loans were the main lending directions of the "Second Bank" before. The total amount is about 110 billion US dollars. It is exactly half of its deposit balance of 220 billion US dollars. Its deposit-loan ratio is extremely reasonable, and its capital turnover is also in an excellent state.

But if the 95 billion US dollars loan of "Airbus" is added, the total amount is 205 billion US dollars. And the "Second Bank" has only 220 billion US dollars in deposits. Its loan-to-deposit ratio is as high as 93.18%, which is already a high risk. Once a problem occurs in any link, a domino effect will occur directly, and the "Second Bank" will not be able to honor the withdrawal requirements of deposit customers.

The "Second Bank" is in danger! ——This is the final summary of the Wall Street Journal, and it calls on customers who have deposits in the "Second Bank" to withdraw their funds as much as possible to avoid the eventual inability to withdraw their deposits.

This summary is undoubtedly very insidious. If all deposit users go to withdraw money at this time, a run will inevitably form. The "Second Bank" simply cannot take out so much money to provide customers with cash withdrawals. Once a run is discovered, the bank's stock price will suffer a heavy blow. The withdrawal run of ordinary customers will also inevitably bring a crisis of confidence among large corporate customers. Once large corporate customers go to withdraw funds, the "Second Bank" will inevitably go to the loan customers to ask for funds. Once asked, those loan customers will not be able to repay the funds, resulting in their operational difficulties. This series of vicious cycles will inevitably lead to the bankruptcy of the "Second Bank".

The most direct consequence of the bankruptcy of the Second Bank is the collapse of the credit system of the Second World. Today's credit system of the Second World is based on the guarantee of the Second Bank. Once the Second Bank goes bankrupt, the trust mechanism of the Second World will no longer exist, and Lin Feng's largest money printing machine will no longer exist. Then Lin Feng's Second Consortium will also be in crisis.

However, what the Wall Street Journal did not expect was that the expected run did not occur. Originally, the Wall Street Journal sent people to the Hong Kong headquarters and branches in several major cities in China to wait and take pictures and then make the headlines. The title was written - a run on the Second Bank, and the power of the God of Wind was gone.

As a result, after squatting for a day, the door of the Second Bank was in order. Although people came and went, the expected run did not occur. Although there were people coming and going, the withdrawal amount was not large. Most of them were hundreds, thousands, and tens of thousands were rare.

After squatting for a day, the Wall Street Journal was depressed. Of course, the most depressed person was naturally Condi. He was ready to cut off the firewood from under the cauldron and give Lin Feng a hard blow. But who could have expected that this move of cutting off the firewood from under the cauldron would have no effect at all.

He didn't understand. This was a very serious matter for any depositor. It was related to their funds. How could no one think of the risk and withdraw cash? This was abnormal!

The Wall Street Journal continued to wait the next day, but the result was still the same. The door of the Second Bank was in good order and there was no run at all. And it was still the same on the third day. The Wall Street Journal couldn't help it.

It had been three days. Logically speaking, such an astonishing loan-to-deposit ratio was enough to worry any depositor. Not to mention those big customers coming to withdraw money, at least the small customers, ordinary citizens, should come to withdraw money. This is the most normal situation. Because ordinary customers have the worst tolerance. As a result, there was no one.

So, on the fourth day, a reporter from the Wall Street Journal stopped a customer who came to withdraw money at the door of the Second Bank.

"Hello, sir, do you know that the loan-to-deposit ratio of the Second Bank has reached 93.18%?" The reporter from the Wall Street Journal stopped a middle-aged customer and asked.

"Loan-to-deposit ratio? What loan-to-deposit ratio?" The middle-aged man was obviously stunned.

The reporter of the Wall Street Journal was delighted. It seems that these people don't like to watch this kind of news, so it's good. Once they say it, the man will definitely be scared. He withdraws money, and then he will call his friends. Ten people will tell ten people, and a hundred people will tell a thousand people. This will naturally lead to a run on the bank.

"Sir, this deposit-loan ratio refers to the ratio of bank deposits to loans. The higher the ratio, the greater the risk of bank funds. The international risk index is 75%. If it exceeds 75%, it means that the bank may not be able to withdraw cash. And now the "Second Bank" is as high as 93.18%, which is already a high-risk stage. You see, this bank is calm now, but it may be closed tomorrow!" The reporter of the Wall Street Journal was alarmist, with a smirk on his face, ready to see the expression of the middle-aged man after exclaiming, withdrawing cash crazily, and then calling his relatives and friends.

As a result, the middle-aged man was stunned for a while, and then went in to withdraw money as if nothing had happened. This made the reporter very puzzled. What on earth is going on? Why is he not excited? Why is he not panicking?

"Sir, sir, aren't you afraid that your funds will disappear?" The reporter from the Wall Street Journal hurriedly chased after him and asked.

The middle-aged man was obviously a little unhappy.

"Whether the loan-to-deposit ratio is high or not, it's none of my business!" After saying that, the middle-aged man shook off the reporter, and seeing that the reporter was still trying to catch up, he immediately pointed at the reporter and yelled, "If you come closer, I'll shout robbery!"

Depressed! The reporter from the Wall Street Journal had to retreat. He cursed in his heart, what's wrong with this guy, he doesn't understand that with such a high loan-to-deposit ratio, will something go wrong. If there is really a little accident, the funds deposited in the bank will be ruined.

Damn, sooner or later I will lose all your money! The reporter from the Wall Street Journal retreated outside in a huff, looking for the target carefully. Not long after, he saw a young man wearing glasses coming over. This middle-aged man may not know much about financial knowledge, so he doesn't care. But this young man should be very cautious. And now the Internet is very popular, so there should be no problem.

Then, the reporter stopped the young man who was about to enter the bank to withdraw money.

"Sir, do you know that the loan-to-deposit ratio of the 'Second Bank' is as high as 93.18%?" the reporter asked.

The young man nodded.

The reporter was delighted.

"Then are you going to take out all the money?" the reporter asked again.

"Why do you want to take out all the money? It's safer to keep the money in the bank." The young man shrugged and said.

The reporter was puzzled again. What's going on? Aren't you worried about losing the money?

"The money is gone?" The young man was obviously surprised, then waved to the reporter, walked out of the door, pointed to the sign above and said, "Look at what this is?"

"The Second Bank!" the reporter said hesitantly.

"Then do you know who opened the Second Bank?" the young man asked again.

"Lin Feng!" the reporter answered instinctively.

"Isn't it settled! This is the bank opened by Lin Feng, and Lin Feng is so rich. Even if the loan-to-deposit ratio of this bank is 200%, do we need to worry? This is Fengshen's bank, will he not give us money! He actually asked such a simple question, so stupid!" After that, the young man floated in to withdraw the money.

The reporter was dumbfounded!

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