From any perspective, Wall Street is the biggest loser in the financial regulatory reform after the passage of the Wall Street Reform Act. Wall Street "bigs" like Citigroup and JPMorgan Chase will inevitably face higher capital adequacy and liquidity regulatory provisions, because the bill clearly requires that in order to end the phenomenon of "big but not falling" in financial institutions, the bill stipulates that all banks and non-bank institutions with significant impact on the financial system should be included under the Federal Reserve's supervision, and a new systemic risk regulatory framework is established for pre-prevention. In the past, financial institutions' rapid expansion relying on acquisitions will not work.

In terms of post-disposal, in order to prevent the financial crisis caused by the bankruptcy of large companies such as Lehman and AIG, the bill gave the Federal Savings Insurance Corporation (FDIC), which used to protect the deposits of small and medium-sized depositors, to have greater authority to liquidate large financial institutions after bankruptcy. When the operation of a huge financial institution fails, it is not ruthless to adopt a safe and orderly bankruptcy liquidation procedure for them. What Wall Street most cannot bear is that it also stipulates that the relevant costs of this series of reforms carried out by the US financial industry must be borne by the financial industry itself rather than taxpayers.

This means that the proprietary businesses of investment banks such as Goldman Sachs and Morgan Stanley have been greatly restricted. OTC derivative transactions that brought rich returns before the crisis will shrink significantly. The lawless hedge funds and private equity funds in the past have gone from an unregulated "shadow banking system" to an ordinary company included in the strict regulatory framework, and their identity changes are not small.

What's even more serious is that once the above companies are considered to have triggered a financial crisis and have systemic risks, they will face higher regulatory standards, stricter compensation regulations, and even the prospect of being forced to be split and liquidated. If the regulatory authorities think that these institutions are too large, they are more likely to directly reject their mutual merger applications. Therefore, no financial institution is willing to be included in the Federal Reserve's "too big to failure" blacklist.

Of course, this bill has changed a major change compared to his previous life due to Yang Xing's motivation. That is, the "bank tax" that was originally the focus of the debate in this bill was proposed by Bush Jr., the Republican president, in advance, which was not worthy of the traditional Republican funder Wall Street, and its scale has also expanded to $30 billion. Although this is a drop in the ocean compared to the trillions of dollars of rescue funds received by Wall Street in the crisis, the rejected bill in his previous life passed smoothly, which really made the recovery American financial institutions hit the head.

The Wall Street Reform Act authorizes regulators to take over, split and liquidate financial companies that fail to operate, split and clear, but there is a fierce debate on who will pay the related costs. The government and Congress finally decided to introduce a "bank tax" to allow all banks with assets of more than $50 billion to pay about $30 billion in taxes within five years to pay the cost of financial regulatory reform. This decision triggered a strong rebound in the US financial industry as soon as it was announced. The Wall Street Journal published an editorial objection, believing that this provision would only reduce the supply of funds, increase the cost of credit, and make the reforms go in the opposite direction.

But the Treasury Secretary Paulson, who is fully supportive of the plan, was unmoved because this idea was the one that resonated with him among the series of plans recommended by Yang Xing to him. Although he also knew that Yang Xing's plan would inevitably have ill-intentioned actions, but like drinking poison to quench thirst, Yang Xing's plan hit the nail on the head and most of it had immediate effect. He even took the initiative to take over the mess of Washington Mutual Bank.

Recently, the United States has followed his plan to blame Jiangdong, suppressing the sovereign credit ratings of EU countries that are trapped in the European debt crisis. As expected, the frightened international hot money has turned around and flowed to the United States. After all, compared with European countries' frequent bankruptcy, although the interest on US Treasury bonds has been suppressed very low, relying on the reputation of the United States, it is still a relatively safe haven in the current financial tsunami. A large number of funds have greatly alleviated the liquidity crisis in the United States, and Paulson is also regarded as a hero who has turned the tide. Now he obeys Yang Xing's technology, not to mention that Yang Xing has encouraged the EU to launch deposit taxes to repay debts. So what's wrong with retiring and only levying taxes on banks?

In addition, compared with the Wall Street Reform Act in the previous life, the implementation of the bill in this life is much more stringent. The bill in the previous life gave Wall Street a relatively relaxed environment for adjustment of operations, and many clauses were implemented for fifteen years! The impact on the profits of Wall Street's major financial institutions was minimal, and it was also the biggest benefit of Wall Street's large-scale lobbying for Congress.

But the financial tsunami in this world is too fierce. The frightened politicians from all over the world would rather overdo their reputation of being tainted by financial borers. This bill stipulates that the maximum implementation period is only five years. Compared with the "Glass-Stigell Act" passed by the United States in the Great Depression in the 1930s, the "Glass-Stigell Act" that ordered banks and investment banks to operate separately was even more than that.

This has a heavy blow to Wall Street, especially for the remaining Goldman Sachs and JP Morgan, who have only achieved success. They have been full of thorns when they switched to ordinary banks. Now the EU is even more chasing the US investment bank led by Goldman Sachs to help European pig countries make fake accounts. They can only lose money and avoid disasters to survive. In addition, the tight curse put on the Wall Street Reform Act, even if Goldman Sachs, which was domineering in the financial industry, had to bow its head and prepare to bleed heavily and sell non-core assets to overcome the difficulties.

In addition, EU countries that are deeply trapped in the whirlpool of the European debt crisis have to accept EU aid organizations. The bitter prescriptions offered by the European Central Bank and the International Monetary Fund have been greatly reduced in fiscal spending and reorganized domestic financial institutions while selling a large number of state-owned assets. In the past, infrastructure construction, water conservancy, roads and ports, which were regarded as the crown jewel of the crown, were listed on the auction list. For a time, the market began to spread the saying that European and American assets were sold at a low price, and emerging market countries could take the opportunity to buy at the bottom.

This news is quite tempting. Yang Xing, who had just inspected the construction of several star cities and ports along the coast, received an invitation from the central government to ask him to attend a discussion on using foreign exchange reserves to buy at the bottom of the purchase. After entering the venue, he found that almost all major economic experts in China gathered. Although he was the number one mastermind behind this financial tsunami, he only knew it in a very small circle and did not intend to promote it. So the meeting began. Xu Shu of Baoding entered Cao's camp - without saying a word, listen to the opinions of others first.

The topic was very popular at the beginning of the meeting. Most economists attending the meeting had a clear view on whether they should go abroad to buy at the bottom now. Supporters believe that this is a godsend opportunity. It seems that the financial tsunami has caused great changes in the capitalist world that have not been seen in five hundred years. The country should learn from Japan's Meiji Restoration experience and take the initiative to increase China's national strength to the point where it can compete with the United States.

What's more, my country's foreign exchange reserves have been increasing year by year in recent years, and are currently exceeding 1 trillion US dollars. It is not impossible to double again within one or two years. Not only have they won the championship of developing countries, but Japan is even surpassing us in the world. Most of the foreign exchange is US dollar assets. Now the Federal Reserve is preparing to introduce a "quantitative easing" policy, opening the printing machine to print money to save the market. The depreciation of the US dollar has become a foregone conclusion, which has a great blow to my country's foreign exchange reserves. Instead of waiting for the foreign exchange depreciation in its hands, it is better to take the initiative to go overseas to turn it into a physical asset that is beneficial to the country. Now the Western assets are sold out, which is a good time!

The opposition faction believes that although the financial tsunami is fierce, it cannot be said that it is worse than the Great Depression in the 1930s. Moreover, no one can tell when the crisis will end. What if we just emphasize bottom-up and bottom-up is halfway up the mountain? Western countries have been playing finance for hundreds of years. In contrast, in the 1998 years, the bad debts of the four major banks almost dragged down financial reforms. Now we have recovered. We want to take advantage of foreigners without having their wings. We are not afraid of others setting traps to jump in. Although we have a lot of foreign exchange reserves now, we are also wealth accumulated bit by bit by bit. It is the hard-earned money of the people of the whole country. If we make mistakes in bottom-up buying, who can be responsible for the losses?

The two sides were quarreling, and in the end it was Premier Wen Rengui who presided over the meeting who personally ordered Yang Xing's general, which made everyone calm down for the time being. I remember that there was such a master beside him who had predicted that the tsunami was coming and that it could still turn the world upside down, making the top leaders of the European and American economy come to China for advice. Both sides wanted to hear which side he would support.

Yang Xing smiled and said, "I think everyone attaches importance to the national foreign exchange reserves. I don't comment on who is right or wrong at first. I think officials from the State Administration of Foreign Exchange and the Central Bank are here, so that they can clearly explain the origin of the national foreign exchange reserves to us so as not to make mistakes, saying that we are a group of economists who don't even understand basic common sense."

Among the officials who attended the audience, only Zheng Feilong and Yang Xing had a special relationship. After he said this, Zheng Feilong had to stand up with his teeth. Fortunately, Yang Xing communicated with him before the meeting and did his homework. Moreover, this was also a good opportunity to show his face in front of the central leadership. He quickly got into the state and talked about his views.

The following words: After more than three years, this book is finally coming to an end. I think of the ups and downs that have passed in the middle and feel a lot of emotion. Readers who have been following this book may find that I am a normal office worker, and I only have some free time to write after busy work every day. Besides, I am also a person with a wife and daughter in my family, and I cannot write all night long. Now I can finally fulfill my original promise, without any unfinished, and reaching the promise of more than 2.5 million words. I feel that it is a miracle. I sincerely feel that it is here
Chapter completed!