At 9:12 a.m., the International Association of Swap and Derivatives (ISDA) announced that investors would be allowed to reversal of credit derivatives associated with Lehman to avoid being involved in the huge vortex caused by Lehman's bankruptcy in the future.

At the same time in the CEO office, Richard Ford picked up the phone and told the secretary: "It's time to inform the board of directors to have a meeting."

Just a few minutes ago, he received a call from Fed Chairman Bernanke: "Richard, don't blame me. The previous Fed's invisible bailout agreement to financial institutions has stimulated moral risks. Therefore, we unanimously decided to choose a reckless institution with enough influence to shock the market and take the initiative to give up all potential commitments to it, and let it go completely to warn all market participants not to have any fantasies. In fact, Lehman was just chosen at the wrong time."

It was this call that completely defeated Richard Ford.

2008/09/15

01:00

After nearly 6 hours of discussion, the board of directors of Lehman Brothers reached an agreement on the conditions for the company's bankruptcy issued by the Federal Reserve.

At 1 a.m. on September 15, Richard Ford walked out of the Lehman headquarters building and faced the coming media, he read out the board resolution: Lehman Brothers Investment Company applied for the Federal Government for Bankruptcy Protection Act No. 11.

From that moment on, Lehman surpassed the bankruptcy of Dechuang Securities in 1990 and became the largest bankruptcy case in American history.

What surprised the Fed was that Lehman Brothers' collapse was not the end of the subprime mortgage crisis, but the beginning of a larger global financial tsunami.

Later, as Bank of America, Morgan and Goldman Sachs gave up their investment banking business and applied to become savings banks under the Fed's management, the five major investment banks on Wall Street became history.

From a composition perspective, Lehman's assets are very reasonable, and most of them are mortgaged bonds for commercial real estate. Benefiting from the longest-lasting real estate bull market in the United States, Lehman's profits have ranked among the top three of the top five investment banks in recent years.

But success or failure is real estate.

On the one hand, he is crazy about taking advantage of high-quality real estate projects such as apartments and office buildings for a long time; on the other hand, in order to reduce financing costs, he uses a large amount of financial leverage from a combination of short-term loans and one-year bonds to complete the acquisition. Once a Lehman encounters a financial crisis, the only option of death is left.

There is no permanent rise in the real estate market, such as the collapse of Japanese benzene real estate, and the US subprime mortgage crisis. If the real estate market fluctuates with finance, no one can escape it.

What you can do with real estate speculation can only be bubbles.

At this time, Rennes Smith's phone rang. It was an old friend's phone call. He was in charge of the Hong Kong Lehman Brothers branch. He served as the chairman of the Hong Kong Lehman Brothers branch. His name was Pasto Brandt!

After the Hong Kong Lehman Brothers branch was sold, Pasto Brandt went to a Hong Kong insurance company, which seemed to be called Blackshirt Insurance Company, and served as executive director. He didn't know why he suddenly called him.

After thinking about it, Rennes Smith answered the phone.

After a few greetings.

Pasto Brandt said, "Smith, you are a rare talent. Now that Lehman Brothers has gone bankrupt, come to Hong Kong. This can give you a higher position. This will be your new stage. My big boss is a very, very powerful person."

He himself is the chairman of the Hong Kong branch of Lehman Brothers. Now he is not feeling bad when he sees Lehman Brothers going bankrupt.

Then he said something briefly, which stunned Rennes Smith.

Pasto Brandt said, "Smith, come to Hong Kong. I can recommend you to become the executive director of Blackshirt Investment Bank. It is also a partner system in Blackshirt Investment Bank, which is similar to Lehman Brothers. Now it needs talents. I hope you can come to Hong Kong. Then we can work together. I am in Blackshirt Insurance Company, a subsidiary of Blackshirt Group, and you are in Blackshirt Investment Bank of Blackshirt Group."

Rennes Smith thought for a while and said, "Okay, I happened to go to Hong Kong to relax. I'm so tired recently. See if I can do the job you mentioned."

Pasto Brandt smiled and said, "Smith, you can also introduce all the talents in your department to Hong Kong. We need a lot of talents."

Currently, the Black Shirt hedge funds, Black Shirt Insurance Company and Black Shirt Investment Bank under the Black Shirt Group are in a period of rapid expansion and require a large number of outstanding talents. Although Lehman Brothers has gone bankrupt, it does not mean that the employees of Lehman Brothers are garbage. On the contrary, these employees are very excellent.

Now that Lehman Brothers has gone bankrupt, he hopes to find some talents to come.

Thinking of this, he continued: "The treatment here will not be much worse than Lehman Brothers. As long as you do well, the bonus is very high. In Blackshirt Investment Bank, it will take 40% of the net profits of the three departments of the Securities Department, the Investment Management Department, and the Investment Banking Department as the bonus for partners every year."

Rennes Smith nodded and said, "Okay, I'll ask them."

Since Pasto Brandt, chairman of Lehman Brothers' Hong Kong branch, also joined a financial group in Hong Kong, maybe they can try it, it is not so easy to lay off employees everywhere on Wall Street and find a good job.

After the call ended, Rennes Smith stood up and returned home.
Chapter completed!