Now, in order to save the American International Group alone, it requires at least $85 billion in rescue funds. With Lehman Brothers, Paulson's $700 billion in rescue funds applied to Congress will cost more than half. Therefore, after weighing the importance of the two to the economy, investment banks that only know how to play financial alchemy are naturally not as good as companies that buy insurance for customers around the world. Lehman Brothers has to be abandoned.

At this time, there is only theoretical possibility to rescue Lehman Brothers. But what happened to be miserable was that Paulson was looking forward to was also facing a 700 billion rescue plan. After the financial tsunami, the US government continued to spend a lot of money to aid relevant financial units. The unemployment rate of ordinary people was high, and a large number of houses were taken back for auction overnight. The people's emotions were very bad. Many members of Congress, as representatives of voters, had to accept public opinion and proposed that this huge rescue fund was still mainly to rescue Wall Street rich people, which easily aroused the public's disgust and refused to pass the bill. After the news came out, no buyer in the market dared to take over Lehman, and Lehman's fate was destined.

The death bell of Lehman Brothers sounded, and the news of the US House of Representatives rejecting the $700 billion rescue plan came out. This financial tsunami originated from the US subprime mortgage crisis finally completely defeated the dying world stock market. On the day of Lehman's bankruptcy, the US stock market fell sharply, and the Dow Jones fell by 777 points, a drop of up to 7, worse than the global stock market crash in 1987, setting a record of the largest single-day decline in history. At this time, the US stock index, which is regarded as the weather vane of the world economy, has fallen below 10,000 points from a high of nearly 14,000 points a year ago, and the market value of trillions of dollars evaporated, and global stock markets have also collapsed in full swing.

What has passed with the wind is not only the virtual economic bubble, but the real economy has been dragged down and it is also defeated. Among the three major American automobile companies, except Ford, who had foresightedly packaged the entire company into listing before the crisis, and obtained more than 20 billion US dollars of working capital. It should be able to last until the cold winter has passed, the other two are facing huge losses.

But General Motors and Chrysler were deeply trapped in the quagmire. Because of the financial tsunami, the US economy fell into recession and most families had to cut spending. Cars, as consumer goods, have undoubtedly become the first choice. Poor sales and sluggish stock markets, General Motors' stock price fell below the psychological threshold of $10, equivalent to the level in September 1954, which was 60 years ago! General Motors bankruptcy, a topic that had never been thought of by Americans before, has now become the focus of discussion.

For many years, General Motors has been the representative of the American dream of the manufacturing industry in the minds of countless Americans. The United States is known as a country on the wheel and has a century-old history. General Motors, which has been the champion of scale and sales since 1927, is undoubtedly a star who brings generations of Americans to the pleasure of driving freely. Now even General Motors, the American manufacturing company, is about to go bankrupt. Americans can't help but ask, what other companies can survive this financial tsunami?

As everyone guessed, with Lehman Brothers going bankrupt and the United States as the center, many arrogant giants in the financial field collapsed one after another like domino collapsed. Paulson would rather give up Lehman than save the American International Group. Although the Federal Reserve announced that it would provide it with $85 billion in emergency loans and mortgaged the emergency loan with the company's 80 shares warrants, the price paid was that the board of directors was dissolved, the chairman and most senior executives were swept out, all of which were replaced by personnel assigned by the US government, and in fact it was nationalized.

American International Group became the largest nationalized transaction in the U.S. history, second only to the number of acquisitions proposed to Fannie Mae and Mortgage. Immediately on April 29, the largest savings and loan bank in the U.S., the largest savings and loan bank in the U.S., headquartered in Seattle, was seized and taken over by the U.S. Federal Deposit Insurance Company (FDIC), setting a record for the largest bank collapse in the U.S. history.

Although the United States stipulates that even if the bank goes bankrupt, it is necessary to protect the deposits of small and medium-sized depositors. Fdic comes forward to bear the risk of most depositors' deposits, Washington Mutual Bank is a large bank with outlets in 50 states in the United States. In addition to the deposits protected by law, the deposits of large depositors are threatened. The US JPMorgan Chase Bank, which was brought to the government, is reluctant to bid $1.9 billion to acquire Washington Mutual Bank, which means that no one is willing to pay for the losses of the large depositors, so many heavyweight depositors are preparing to file lawsuits to prevent the transaction.

At this time, Yang Xing finally showed his fangs. After he spoke with Paulson for several hours across the ocean, the US government changed its attitude and agreed to the US branch of Xingfu Bank to acquire most of Washington Mutual Bank's business for $14.5 billion. As a condition for acquisition, Xingfu Bank not only divested the toxic assets related to real estate mortgage loans to the US government, but also required all the operating barriers set by Zhongxing Capital to be eliminated in the past. Of course, Xingfu Bank also promised that all depositors of Washington Mutual Bank's depositors should not be frozen, and most of the employees and outlets of Washington Mutual Bank were retained to avoid social turmoil.

Yang Xing's trick was a great opportunity to take advantage of the situation. Since many financial giants collapsed continuously in a short period of time, Americans were almost numb when they heard bad news. Therefore, despite the huge scale of Washington Mutual Bank, people are more concerned about whether their deposits are guaranteed and whether bank employees will be sent off. As for whether the new owner is an American or a Chinese, there is no need to care about it.

Some American conservative media reporters wrote jealously that the financial empire that Washington Mutual Bank had spent more than a hundred years to establish, but now it collapsed but has made it cheaper for Chinese people. Xingfu Bank was previously unable to start its business in the United States due to government obstruction. Now, it only spent one-tenth of the previous share price of Washington Mutual Bank to obtain ready-made bank online stores in the most commercially valuable areas in major cities across the United States, and its scale suddenly caught up with the top Citigroup and Bank of America, the top famous Bank of America. And compared with most of its peers who are still struggling in the subprime mortgage quagmire, Xingfu Bank's parent company still has nearly 100 billion US dollars of working capital, which is sufficiently capitalized to make people jealous.

There is a general consensus in the financial industry now, that is, the good time to pursue high risks and high returns in the past is over. The United States and Europe are planning to issue strict financial regulatory laws, and the investment banking giants who once represented American finance also came to an end. On the same day that Lehman Brothers fell, the negotiations between Merrill Lynch Investment Bank and Bank of America ended in a flash, and the history of Merrill Lynch Investment Bank came to an abrupt end. Wall Street only has two major investment banks, Goldman Sachs and Morgan Stanley, have finally realized the reality. Goldman Sachs asked Buffett for help, Morgan Stanley and JPMorgan Chase negotiated a merger, and took the initiative to apply to the US Securities Commission to change to a regular bank and accept more supervision in exchange for US government rescue funds. At this point, the investment banks that are powerful in the world's financial markets have completely withdrawn from the historical stage.

Wall Street's investment model has changed drastically, and has begun to reflect on itself and put down its stance and compromise. After all, the US government cannot watch the giants fall one by one. The 700 billion rescue plan rejected by the House of Representatives has undergone a shocking reversal after being sent to the Senate for review. The Senate not only passed the bill, but also increased the amount of rescue to US$850 billion.

Paulson also came forward in person, and the presidents of the top ten banks in the United States were convened to threaten to provide aid funds, demanding that the government must exchange aid for shares, intervene in bank management as a major shareholder, and like a matchmaker, they will randomly combine major banks facing crisis, striving to avoid bankruptcy crises like American International Group and Washington Mutual Bank.

In a certain way, since April 2006, the US government almost completely nationalized Wall Street, and finally stabilized the financial market by the end of the year. But the price was to spend trillions of dollars of taxpayers to save the rich financiers in the eyes of outsiders. The recession this year has become a foregone conclusion, with an unemployment rate of more than 10. Many college students joined the unemployed army as soon as they left school, and the people were very resentful about this. At this time, there was news that many financial institutions receiving assistance were still paying high compensation for dismissed senior executives, which undoubtedly added fuel to the fire.

Since June, angry people have blocked major roads in Wall Street in New York. The "Occupy Wall Street" movement, which emerged last year, entered the **, demanding that the financial culprit be punished, and the call for social fairness has become a hot topic in American society. The "Occupy Wall Street" movement has spread rapidly to all parts of the United States and has been imitated around the world. Western society has also produced many reflections on this financial tsunami that swept the world. The greed of human hearts has brought such a good consequence. In addition to questioning the Western economic system, it has also raised great questions about the most proud political system in the West.

The United States was overwhelmed by the subprime mortgage crisis, but it was lucky compared to Europe on the other side of the Atlantic because they had an additional European debt crisis. As the news of Lehman's bankruptcy fermented, soon the largest bank in Europe, Swiss Bank, reported a shocking figure of 13 billion euros in the first quarter; Spain's largest bank, Fortis Financial Group, which spans the Netherlands, Belgium and Rollinglands, and Dexa Group, a joint venture between France and Bibi, were forced to accept government rescue and became a national bank.

Iceland and Ireland, which were criticized by Balance Firm, finally could not escape the disaster. After the three major banks in nationalization, the Iceland government was still abandoned by investors and was unable to repay tens of billions of debts, so they could only declare their country bankruptcy. Although Ireland took over all the six largest banks in China, it was still helpless in the face of debts of up to US$400 billion. The outside world estimated that it would either accept harsh aid from the EU or that only the country would go bankrupt.
Chapter completed!