Chapter 506: Citibank's stock price plummets
When the $5 billion that Citibank loaned to Stanley before was possible, Citibank's internal management has been making various preparations to prevent this risk.
The board of directors of Citibank quickly removed Dave and replaced him with another person to take charge of Citibank's work. However, such things were not ready, and the five billion dollar loan from their Citibank broke out in the news media.
Everything was as worried by the directors of Citibank. As soon as the news came out, the market instantly had several times the funds for shorting Citibank. All famous funds were gathering continuously, and their target was Citibank.
When the news came out, Citibank encountered a bank run. Fortunately, Citibank had a huge relationship at that time. When the economy was not good, it could borrow a lot of cash from the country to deal with it. It cost a lot of money to finally suppress the crisis.
But before Citibank could take a breath, there was another problem with the stock price in the secondary market.
After professional analysis, many famous short-selling institutions on Wall Street came to a common conclusion that shorting Citibank funds can obtain considerable returns at this time.
Although many people know that Citibank's financial statements in the previous year are very good. Even when the economy continues to decline, profits still rise. Judging from this data, Citibank has not been affected by the economic crisis.
But there are still some people with unique vision who see the deep tricks of Citibank. They think that the 5 billion US dollars of funds Citibank has loaned to Stanley. At present, Citibank's internal risk control capabilities are very low. At the same time, after missing the 5 billion US dollars, Citibank's profits this year should have dropped sharply.
At the same time, it was discovered that Celode Dave, who had been in charge of Citibank for several years, was removed from his post by the board of directors at this time, and someone who had no experience in managing a large enterprise before came to power.
Some people believe that Citibank's trick may lead to huge personnel turmoil in Citibank's internal affairs and may bring new crises to Citibank.
So under the influence of these multiple factors, the big guys who shorted institutions began to enter the market to short Citibank's funds, and the largest of them was Lin Feng's funds.
Zou Ming sat on a red Italian leather sofa, crossed his legs, held his cell phone in one hand and watched the stock price trend of Citibank in the other hand, and held a cup of coffee in the other hand to refresh himself.
"Boss, Citibank's stock price has fallen by 50%. Do we still need to continue shorting?"
When Zou Ming saw that Citibank's decline in recent times had reached 50%, he quickly called Lin Feng. After all, Lin Feng had said before that once Citibank's share price fell by half, he would report to him and prepare to start a new move.
At this time, Lin Feng, who was in Binhai, was inspecting the Starry Sky Science Park. Since the Li family was resolved by Lin Feng, the Li family's equity in Binhai Starry Sky Science Park has returned to Lin Feng's hands. Currently, Lin Feng has 100% controlling stake in Starry Sky Science Park.
Lin Feng stood at an intersection in the Science and Technology Park, watching the endless stream of people coming and going in the distance, and then turned to look at the dozens of floors of buildings around him, and couldn't help but feel a sense of pride in his heart.
When he first built this science and technology park, it was still a wasteland. Now, with the efforts of Starry Sky Group, the appearance here has completely changed in just two years.
Just as Lin Feng was constantly sighing, the phone in his pocket rang and a pleasant ringtone came.
Lin Feng took out his cell phone and pressed the answer button. When he heard Zou Ming on the other end of the phone say that Citibank's stock price had fallen by half, his lips raised.
"It seems that Citibank is really in trouble this time."
"You will immediately start spreading news about Citibank's problems in the market, and at the same time increase your short selling efforts on Citibank."
When Zou Ming heard that Lin Feng had to increase his short selling efforts on Citibank, he didn't have time to react. He didn't understand why Lin Feng didn't enter the market to buy at the bottom at this time. After all, according to his analysis of Lin Feng, he should want to invest in Citibank.
"Boss, aren't you planning to invest in Citibank?" Zou Ming asked in confusion: "If we enter this time, it will be a great opportunity for us. Once we miss it, the long funds in the market will increase, and the price we have to pay when we want to buy Citibank's shares will increase greatly."
Lin Feng laughed loudly when he heard Zou Ming's words.
"Zou Ming, I can guarantee you that once we increase our short selling efforts on Citibank, the short selling force in the market will increase several times again, and the funds for buying at the bottom will become smaller."
"After all, once those who enter the market to buy the market see that the stock price of Citibank is still falling, they will definitely become panicked and feel that they are buying at the bottom of the market to buy the market now, and they will definitely sell the stocks they are crazy about at that time."
"We want to invest in Citibank, but we don't have to buy all the shares ourselves."
"Once Citibank's stock price plummets again, on the one hand, you will withdraw our short funds, and use part of them to buy Citibank's shares in the secondary market, and on the other hand, you will go to other major investment banks to buy Citibank's call options and various bullish financial derivatives."
After hearing Lin Feng's words, Zou Ming immediately realized that Lin Feng planned to control Citibank's equity through financial derivatives, rather than buying Citibank's stocks directly on the stock market.
If Lin Feng is directly buying Citibank's stocks on the stock market, no matter how the Citibank's stock price plummeted, there will always be people who notice that there are funds below that are constantly taking over. At that time, they will definitely know Lin Feng's intentions. Once these funds join and compete with Lin Feng for the funding, it is very likely to bring huge difficulties to Lin Feng's investment in Citibank.
If you keep buying various bullish products from Citibank through the financial derivatives market, once the time for fulfillment comes, those investment banks can only buy Citibank's stocks from the secondary market and hand them over to Lin Feng. Even if Citibank's stock price soars to the sky, it will be very important for Lin Feng.
After Zou Ming figured out the key, he immediately gave a silent praise for Lin Feng's talent. At the same time, he finally understood why Lin Feng was the boss and he was just a job.
"By the way, has there been any movement between Bafeet and the Morgan family recently?"
After Lin Feng arranged the Citibank plan for Zou Ming, he remembered that Zou Ming hadn't reported to him about the movements of the Morgan family and Bafeteriat with him for a long time, and he didn't know what these two forces were doing recently.
When Zou Ming heard Lin Feng's words, he quickly sorted out the recent funding trends of Bafeter and the Morgan family, straightened out his thoughts, and said slowly: "Recently, our people have investigated that after Bafeter and the Morgan family joined forces, they first cleared the short funds outside the Morgan family, and then there was no movement."
"But I also found out that the Morgan family seems to be planning to sell farmland in every state of their family recently, and it seems to be very large because the strength of the buyer is the billion-dollar threshold."
Lin Feng was stunned when he heard Zou Ming's words. The Morgan family wanted to sell farmland and sell all the land left by their ancestors. This is really a puppy who sells his master's land.
"You go and help me investigate the whole story of this matter immediately. I want to know how much land the Morgan family wants to sell. If the area is large, you register a company in Country M and I want to buy all the land of the Morgan family."
Chapter completed!