ISDA, International  Swaps  and  Derivatives  Association, that is, the International Swaps and Derivatives Association, consists of more than 830 institutional members from 53 countries, including financial institutions mainly engaged in derivative commodity trading, government organizations, enterprises that use OTC derivative commodity management business risks, and major international legal firms, etc.

The market value of the ISDA managed and subsidized market reaches US$700 trillion, more than 10 times the global economy. However, due to the relatively low-key organization, non-Wall Street veterans know nothing about it. Only ISDA members are eligible to participate in transactions, and ordinary investors cannot find a threshold because insurance companies and financial institutions selling CDS will not be open to the public at all.

This is why Ren Pingsheng found the reason for his cooperation with Goldman Sachs. If Goldman Sachs had not solved the ISDA threshold problem for KLC, his short selling of subprime loans would not have been implemented, and his plan to short the United States in the entire trading market would have been greatly discounted.

Whether Goldman Sachs is willing to help KLC depends entirely on the big and thick bison Cohen in front of him.

Sure enough, after hearing Ren Pingsheng's request, Cohen immediately showed an unfathomable smile on his huge long face. He retracted his body of more than 200 kilograms back to the chair of the big class, raised his forehead and said:

"Goldman Sachs itself also has its own CDS business. If I also help you short, what is the benefit for Goldman Sachs."

Cohen seemed to feel that he had grasped Ren Pingsheng's weakness. His two huge bone knots crossed their hands in front of his chest, revealing the arrogant look of the Wall Street giant crocodile:

"Tell me, why did Goldman Sachs help you short yourself?"

Ren Pingsheng looked at the Wall Street boss who turned from respectful to arrogant in front of him, and all this was not beyond his expectations.

On Wall Street, which is profit-oriented, all transactions are based on interests. When you can make money for Wall Street, they will hold you to the sky. If you endanger its interests, Wall Street will ruthlessly step on you to the end and kick you out completely.

From the issue of ISDA's qualifications, Bison Cohen thought he had found a handle for Ren Pingsheng. The reason why he kept this point was that he wanted to extract more benefits from Ren Pingsheng, which was completely in line with the legendary image of this Jewish guy.

However, Bison Cohen did not know that the young Asian man in front of him was not ordinary. He could not only predict all the trends of American finance and politics since the subprime mortgage crisis, but also had a close eye on what Goldman Sachs did in this crisis, and all this provided him with a strong confidence in this negotiation.

Facing the arrogant Cohen, Ren Pingsheng said calmly:

"It's very simple, because Goldman Sachs is also secretly shorting CDS."

Ren Pingsheng's words were very simple and concise, but as soon as he said it, Cohen's face changed immediately. He was leaning back and immediately sat upright, putting his hands on the table, and said seriously:

"Mr. Ren, we are in the United States. We have to bear legal responsibility for every word you say. Goldman Sachs has always believed in professional and rigorous philosophy and will not do things that custodials."

Although Cohen looked aggressive, Ren Pingsheng had already seen through his eyes that he was bluffing, and he knew very well the role Goldman Sachs played in this subprime mortgage crisis.

From the information and memories of previous lives, we can see that the cruelty, rationality, ruthlessness and even cruelty that Goldman Sachs showed in this subprime mortgage crisis that swept the United States and the entire world. Even Wall Street, which believes in the supremacy of interests, is shocking.

Since 2006, Goldman Sachs has been serving Paulson Fund, helping him short the mortgage market on a large scale in 2006 and 2007. At that time, in Goldman Sachs' view, Paulson Fund's transactions were very profitable and were very safe. But Goldman Sachs soon discovered that Paulson's short mortgage market was a very clever move, and they decided to call.

Goldman Sachs immediately did the same thing, basically replicating Paulson's transactions. At a meeting in December 2006, Goldman Sachs Group CEO Belankfan and President Cohen personally signed the order to short the mortgage loan market on a large scale. This method of long on the surface and shorting behind it allowed Goldman Sachs to successfully escape the crisis that swept Wall Street. While Lehman, Bear Stearn and other investment banks went bankrupt, Wall Street was wailing, Goldman Sachs not only escaped the bad luck, but also made $4 billion.

So at this time, Ren Pingsheng was fearless and soon threw out another dagger.

"Goldman Sachs is not only selling CDS secretly, but also continuing to sing more CDOs in open marketization, and at the same time selling tens of billions of CDOs in its own business to its competitors."

Listening to Ren Pingsheng's disclosure word by word, Cohen's face was so ugly that it could not be ugly anymore, because he knew that Ren Pingsheng's words were not false.

Because it is similar to what Ren Pingsheng said, while Goldman Sachs shorted the mortgage loan market, there were still tens of billions of related securities on its account. They could not take action in the short term. In other words, while Goldman Sachs shorted the mortgage loan securities, it was also equivalent to longing such assets.

Although this sounds like a hedge, Cohen and other executives thought it was not very smart to do so, because in 2007, short positions had already begun to bring huge returns. Cohen's leading executives decided to sell their mortgage securities holdings, but selling when the market traded lightly means losing money.

In 2007, Cohen sent an email in person asking Goldman Sachs to start writing down the value of its mortgage securities holdings. Cohen insisted that no matter how much the selling price, even if it is a loss, it must be sold and the CDO must be completely cleared. Goldman Sachs cannot hold such securities.

Therefore, Goldman Sachs is not only using CDS to make profits, but also using the asymmetry of information between the two parties in the market to mislead investors and sell these toxic CDOs to its peers and ordinary investors.

During this crisis, Goldman Sachs not only survived the danger safely, but also made huge profits from it, and even used the crisis to further attack its former opponents. In another four months, many Wall Street colleagues will soon become worthless and fall down, and Goldman Sachs will stand on the top of Wall Street with a grand attitude.

This is Wall Street, this is Goldman Sachs’ way of making profits.

However, Goldman Sachs' behavior is undoubtedly a deceptive betrayal for investors who trust it. At this time, no one has discovered any clues in the open market, but Ren Pingsheng has mastered these despicable behaviors of Goldman Sachs.

In Cohen's eyes, Ren Pingsheng raised his legs easily and comfortably and said:

"If I disclosed this information to the media, the media that has always hated Wall Street would definitely like such stories. Think about it, how would the next issue of the front page headline of the New York Times be written, and how about "The Brutal Goldman Sachs"? Well."

Cohen was obviously shocked by Ren Pingsheng's description, and he frowned and said:

“Goldman Sachs has the best judicial team, and our business practices are legally impeccable, and we can win even with judicial litigation.”

In front of Cohen's solemn look, Ren Pingsheng stood up, walked to the huge floor-to-ceiling window of the office, gently lifted up the heavy curtains, looked at the crowded crowd on Wall Street below, and slowly said:

"In six months, there will be corpses everywhere and blood flowing into rivers. More than half of the investment banks on Wall Street will go bankrupt, tens of thousands of people will be kicked out of their existing positions, their houses will be taken away, their loans will be recovered, and they will become penniless in an instant."

Cohen walked over with his huge body, and he said sarcastically:

"There is a proverb on Wall Street: If someone else doesn't fall, it's that you're not successful enough."

Ren Pingsheng's eyes remained on the distance of Manhattan skyline, and he said slowly:

"The spread of the crisis is not limited to Wall Street. Next, there will be countless ordinary families in the United States. There will be more and more people taking to the streets, which will inevitably form huge political pressure and change the political direction of the entire United States."

Cohen stopped talking, and with his savvy and Jewish tradition, this trend could certainly be seen.

Ren Pingsheng continued:

"In this situation where everyone is in danger, a small group of Wall Street investment banks have made a fortune in the crisis and use information asymmetry to mislead investors in the open market. Do you think they will be the target of public criticism?"

Ren Pingsheng's question was undoubtedly aimed at Goldman Sachs. Cohen showed a half-sighted smile on his face, and he forced himself to answer:

"Goldman Sachs has always had a good cooperative relationship with the US government. Even some punishments that have to be issued will not cause any damage to Goldman Sachs."

Ren Pingsheng smiled and said:

"There is a noun called 'scapegoat', have you heard of it?"

Cohen did not answer, his eyes stared at Ren Pingsheng, waiting for his next words.

"Under the pressure of the public and the judicial encirclement, the Goldman Sachs board of directors must make some personnel adjustments to relieve the pressure, and this person is the scapegoat."

Ren Pingsheng gently patted Cohen's high-quality suit, and said unfortunately:

"Think about it, who would Goldman Sachs board of directors be the scapegoat? Is it Berlankfan, who came from a prestigious school and has always had a good public image, or is it a descendant of immigrants from a suburb of Cleveland? Well."

Although Ren Pingsheng's words were quite ruthless, he ruthlessly revealed an ending. If what Goldman Sachs did in this crisis was disclosed, Cohen, as the president and main executor of Goldman Sachs, would undoubtedly be the first scapegoat to be abandoned.

For Cohen, who has been struggling from the bottom and has been struggling for decades to become a senior executive of Wall Street investment banking, Ren Pingsheng's words undoubtedly grasped his life, and the results he explained in his words are consistent with the style of Goldman Sachs Group.

Wall Street has always been a priority for interests. Cohen is very clear that he has not made Goldman Sachs fight to the death to maintain it, so he cannot refuse the deal in front of him.

Turning around, Cohen's long face was filled with the most kind smile, and he stretched out his hand:

"Mr. Ren, Goldman Sachs is honored to be able to serve you."

Ren Pingsheng smiled and shook the big hand. The two of them shook their hands a few times in a friendly manner, as if everything had never happened before.

And where they could not see, Wall Street was brewing a raging fire. This crisis will sweep the entire Wall Street in four months, burning most of the brilliant buildings to ashes, but only Goldman Sachs and Ren Pingsheng would cross the fire safely and leave with the spoils of robbery.

For those naturally powerful carnivorous animals, the crisis brings them not suffering and losses, but a god-given opportunity to bite on their fellow companions.
Chapter completed!