My Age of Investment

  Chapter 1053 Attack on Street Boy Bear Stearns

  Straubel’s contact with other Tesla shareholders went smoothly. Everyone recognized Tesla’s pre-investment valuation of US$450 million and expressed willingness to follow suit.

  Xia Jingxing was not too surprised by the “enthusiastic” response of shareholders.

  After all, the peaches seem to be about to ripen, and you can get more fruits by applying a little more fertilizer.

  However, no institution has jumped out to compete with Envision Capital for the lead investment rights, and its performance is conservative.

After some negotiations, this round of US$50 million in E+ round financing was led by Vision Capital to invest US$40 million. Value Equity Capital, DFJ, Waterfall Investment, and Bezos Venture Capital invested US$2.5 million respectively. .

Needless to say, Value Equity Capital and DFJ have both invested in Tesla for two or more rounds. The amount of investment in Tesla is second only to Vision Capital, although both institutions have invested in Tesla at different stages. La's development has lost confidence, but soon ran back to eat the grass.

  It is the performance of Gates and Bezos' funds that surprised Xia Jingxing. The two funds have been playing soy sauce in the past, and it is rare that they have begun to increase their shares in Tesla.

Xia Jingxing guessed that maybe Gates and Bezos drove their respective Roadster founder series, and they felt very good and decided to invest more; or maybe they wanted to cooperate with them in depth and show their good. With the resources that Gates and Bezos both want, the relationship still needs to be maintained.

The two small funds, SDL and Compass, which have not been investing in the past, also want to participate in this round of financing, but unfortunately, the parking spaces are limited. It does not matter that the two institutions with no background and not too high shareholding ratio cannot get on the car and are excluded from financing. Off the list.

After the completion of this round of financing, Xia Jingxing’s personal shareholding in Tesla has dropped to just 16%, while Envision Capital’s shareholding has increased to 48.52%, adding up to a total of 64.52%. These equity or fund shares All belong to Xia Jingxing.

  The original founders of Eberhard and Tarpening have diluted their shareholding ratios to 5.24% and 2.39%, respectively, which can no longer pose any threat to Tesla's control.

  If there is a chance in the future, Xia Jingxing also intends to take over the Tesla shares held by the two and sell it to the dignitaries in the United States after a few years.

  The parties had just negotiated the investment details, and when they were about to sign the agreement, Xia Jingxing suddenly received an emergency call.

   Before the official contract, Xia Jingxing entrusted the follow-up matters to Ricky, and then he hurriedly left Silicon Valley by private jet and headed to New York.

  ……

  ……

  "Just today, Bear Stearns and JP Morgan signed an acquisition agreement without warning!

  And JP Morgan’s bid was only US$2 per share, and it only cost US$236 million to win this 85-year-old Wall Street investment bank.

  You know, the market value of the 45-story building in Bear Stearns alone has reached 1.2 billion U.S. dollars..."

  In the conference room at 85 Wall Street, New York, Liu Haimei excitedly informed Xia Jingxing of today’s biggest financial news-JP Morgan's acquisition of Bear Stearns, and his joy was beyond words.

  Xia Jingxing listened quietly, nodding her head from time to time.

But I was muttering in my heart that Bear Stearns is truly an "industry light lamp." Last year, the collapse of its two hedge funds opened the curtain of the subprime mortgage crisis. Today, its sale marks the entry of the subprime mortgage crisis. A brand new climax.

  So, as soon as he received the news today, he flew from Silicon Valley to New York to collect the body for Bear Stearns.

Jiang Ping smiled and said: "I can't say that there is no aura! Bear Stearns CEO Schwartz only gave a speech on CNBC TV in the United States four days ago to appease investor sentiment, saying that the company is currently sufficiently liquid and expects The company will be profitable in the first fiscal quarter.

  However, after only two days, the CEO couldn't resist the pressure and asked the Fed for help, saying that he had encountered a major liquidity crisis. The company's cash position had deteriorated sharply in the past 24 hours.

  The Fed was very powerful this time and responded to Bear Stearns’ call for help on the same day.

According to insiders, JP Morgan did not want to take up the mess at first. It was the Fed who was moved by emotion and understood the reason. Of course, the most important thing was that it took out a $30 billion bankroll loan, which convinced JP Morgan to do it. Bear Stearns provided emergency financing.

  From the provision of emergency financing to today’s announcement of the acquisition plan, it took no more than 72 hours before and after it was placed on Wall Street. This can be regarded as a lightning-fast M&A transaction. The degree of urgency can be seen. "

  Xia Jingxing nodded slightly, he had fully understood the whole story on the way here.

  Bear Stearns died a bit wrong this time!

  Since last week, the US stock market has begun to circulate news that Bear Stearns may have a liquidity crisis.

  A few days later, more and more lenders and customers began to withdraw their funds from Bear Stearns.

  This is the same as a bank run. A large amount of cash on Bear Stearns’ accounts disappears, and it is about to default and go bankrupt.

  At this critical juncture, CEO Schwartz, who just took the stage two months ago, had no choice but to step forward and release all kinds of good news on TV. I hope everyone will trust Bear Stearns again.

  But the cutting of American leeks is really terrible. It is nowhere near as easy to fool with Chinese leeks. Wall Street capitalists have always listened to them the other way around.

So, unfortunately, Bear Stearns’ liquidity crisis has become more serious. Numerous hedge funds and asset management companies that traded through Bear Stearns accelerated their escape and withdrew all their cash, because they feared that Bear Stearns’ bankruptcy would cause them to lose money. The money was frozen together.

   Therefore, Bear Stearns can be understood as a victim of market rumors, but the flies do not bite seamlessly. Why are they spreading the rumors? Because there are so many losses!

  There is also a bill issue involved. Why doesn’t the Fed directly rescue Bear Stearns?

  This is because Bear Stearns is actually a large securities brokerage company and cannot get funds through the Fed’s discount window, so it must be an intermediary agency through a commercial bank, so JP Morgan was selected by the Fed as a commercial bank.

  This is equivalent to JP Morgan holding a loan provided by the Federal Reserve, first giving Bear Stearns a short-term bridge loan, and letting this guy stay on the street for a few days, don't hang up, I will rescue (acquire) you immediately.

  The purchase price was only over 200 million U.S. dollars, but the Federal Reserve gave credit support of up to 30 billion U.S. dollars. This is because Bear Stearns has too many toxic assets and may actually have become negative assets.

  The reason why it is possible is because JP Morgan did not have time to perform due diligence at all, and was confused by the Federal Reserve and was driven by the Fed.

  JP Morgan is also afraid that more than 200 million U.S. dollars will buy back a hot potato with actual assets of more than 20 billion U.S. dollars, so I asked the Federal Reserve for a pledge of 30 billion U.S. dollars in loans, and subsequent problems are not responsible.

   "If you want me to say that the Fed shouldn't save Bear Stearns, this breaks the rules. Since the Great Depression of the 1930s, the Fed has issued loans in this way for the first time."

Abel sneered and said, "If Goldman Sachs, Lehman and other financial institutions all encounter a liquidity crisis, will they all have to be saved? Will it be saved? The guy Bernanke should have gone back. The school is going to teach! Wandering the country and the people!"

  Xia Jingxing glanced at Abel, who was filled with righteous indignation. Regardless of this guy's plausible words, he should actually blame the Fed for blocking the company's financial path and also blocking his financial path.

   "If Bear Stearns is not saved, the subprime mortgage risk will spread even more exaggerated, the market will panic more, and the Bear Stearns will not be alone!

  How much do you think the Dow Jones Industrial Index dropped today? It dropped by nearly 195 points. "

  Jiang Ping shook his head and said, "The Fed has its own reasons for its move, but there is indeed a problem with the JP Morgan offer.

  After the announcement of the acquisition today, Bear Stearns’ stock price fell sharply by 53% at one time, setting a record-highest decline, and finally closed at $34.38.

  Even so, Bear Stearns’ current market value is 17 times different from JP Morgan’s offer.

  Does Bear Stearns really have so many toxic assets? Have most of the risks been cleared? Have most of the asset impairments been manifested? "

   "Don't worry about so much!"

   Liu Hai glanced at the dark sky outside the window, and said fiercely: "When the market opens tomorrow, Bear Stearns will definitely plummet!"

  Xia Jingxing said in a deep voice: "I will close the position tomorrow and close it quickly! Don't care about small profits."

   Liu Hai was a little puzzled, but he quickly reacted, "Are you worried that JP Morgan might adjust the acquisition plan?"

  "This is only one aspect. Tomorrow should be the most panic time of the market, there will be a large-scale sell-off, and it is also a good time for us to close our position.

   But on the other hand, Bear Stearns has found the taker, and in fact the risk has been cleared! It's the end!

  What are we doing with empty orders? Isn't it possible to expect Bear Stearns to drag JP Morgan to death for a double kill?

  Pocket as soon as possible, and then find new hunting targets! "

  　Thanks to book friend Xi Chen for his 10,000 points, and one more chapter will be added!

  　　 In addition, there were two changes today, and no changes were made, and I had a bad stomach. I ran to the toilet three times an hour, and I was crying if I said too much.

  (End of this chapter)