Feng Yu had told Minsheng Bank that the US market is very chaotic, and risks and opportunities coexist. If there is a large transaction, they must inform him.
This time, someone wants to borrow 3 billion USD in a short period of time. This number is very large and far exceeds the total deposits of Minsheng Bank in the US. Of course, they must report to Feng Yu.
But according to the person in charge of Minsheng Bank in the US, it should be possible. The other party has a very good reputation.
It is the Bank of America New York branch. Bank of America used to use the name Bank of America on Hua Xia's side because they are a private joint-stock commercial bank. They are worried that people on Hua Xia's side will think it is the US government's bank.
But in fact, although this is a joint-stock commercial bank, it is still closely related to the US government. For example, the families of these bank shareholders have people who hold positions in Congress.
In less than a year, many banks in the US have gone bankrupt. Lending between big banks has become more troublesome, and the checks are stricter.
The interest rate is also raised by Bank of America, and because of this, many small banks have gone bankrupt. Anyway, big banks mainly borrow from others, and it is best if they can get more profits. If small banks go bankrupt, they still have ways to recover their capital.
"General Manager Feng, this is the document from Bank of America. They are giving us a high interest rate. We also analyzed that after a large number of layoffs, the cost of Bank of America has decreased a lot. They can definitely survive this crisis. "
Feng Yu flipped through the document and threw it aside: "This is not the highest interest rate. Tell them that we want the highest interest rate and the priority to repay their loans."
The so-called priority repayment means that when the contract expires, Minsheng Bank can ask Bank of America to be the first to repay them. This is because Bank of America may borrow from many banks.
Priority repayment can reduce the risk of Minsheng Bank. But those who ask for priority repayment usually get a lower interest rate. With low risk, the profits are naturally low.
Feng Yu wants the highest interest rate and priority repayment. It is obvious that he wants to take advantage of the situation.
The Bank of America was required by Congress and Bush's office to help some companies through difficulties and take over some financial companies that applied for bankruptcy. Of course, the US government would also give certain promises to the Bank of America, such as guaranteeing that their debts would be collected on time and providing some other conveniences.
The reason why Bush had such a good relationship with the Bank of America was that the shareholders behind the Bank of America were Bush's staunch supporters.
Bush had many arms dealers behind his back. Everyone knew this. Therefore, as soon as he came to power, he started many wars and helped those arms dealers make money.
The headquarters of the Bank of America was located in California. What was the most important industry in California? Arms!
That was why the Bank of America supported George W. Bush's decree. It was because this was a transaction in itself. In the future, they would continue to promote the Bush family and maintain their cooperation.
Even now, they could not watch Bush fall. This would affect the reputation of the Bush family and have a great impact on their future cooperation.
Moreover, they were in the same boat. Of course, they had to jump in the same direction.
Moreover, helping the government to take over some companies that were on the verge of bankruptcy was not necessarily a loss for them. First, some non-performing assets would be stripped off, and then they could take the opportunity to expand their business scale and get some high-risk bonds.
A policy from the government could greatly increase the value of the bonds in their hands, and they could get rid of their losses and make a good profit.
In Feng Yu's previous life, the Bank of America also supported Bush a lot. This time, the Bank of America also helped Fannie and Freddie. From a business point of view, Fannie and Freddie were definitely finished. But if the government was willing to help, then Fannie and Freddie would have a chance to make a comeback.
The reason why the Bank of America wanted to borrow money now was to help Fannie and Freddie clean up their mess, or they found other ways to make money.
Since the Bank of America came to Minsheng Bank, a low-profile foreign bank, it meant that they really needed money.
Why not take this opportunity to ask for the highest interest and the best conditions?
Anyway, Minsheng Bank and Bank of America were not partners. They were still competitors. If not now, then when?
The president of the New York branch of the Bank of America frowned. This Minsheng Bank was too greedy. Not only did they ask for the highest interest, but they also asked for priority repayment.
When they were still hesitating, the Bank of America proposed another condition. Using the current exchange rate to settle the loan in RMB. That is to say, if you borrow 3 billion USD now, then according to the exchange rate of 1: 7.4, it will be about 22.2 billion RMB.
When you repay, you will have to convert 22.2 billion RMB into USD, and the interest is the same.
But everyone knows that although RMB did not appreciate, the USD is depreciating. By the time they repay the loan, the original value of 3 billion USD will increase to nearly 100 million USD!
Originally, this difference could make up for the Bank of America's interest, but now, the Bank of America will lose more.
The Bank of America was following the request from the higher-ups to take over some of Fannie and Freddie's businesses to help these two companies overcome their difficulties. Of course, the Bank of America could also get some other benefits.
Originally, a small bank like Minsheng Bank was not in their consideration. With such a small scale, they might not even be able to take out 1 billion USD. But when they knew that Minsheng Bank's major shareholder was Feng Yu, they felt that this bank would definitely be able to take out the money.
But they did not expect this Minsheng Bank to be so greedy and propose such harsh conditions!
The other commercial banks in the US were also in a difficult situation. For example, Citigroup was doing well, but they were not willing to lend to the Bank of America. They did not want the Bank of America to take this opportunity to grow.
The Bank of America did not have many choices, and they had also borrowed from Europe. It was not enough. The Bank of America could not let go of anyone in the same industry who could borrow money. So, even if Minsheng Bank's conditions were harsh, they could only agree.
The Bank of America felt that it was wrong for them to be the first commercial bank to raise the interbank rates. They had been borrowing money from other banks, and the higher the interest, the better.
But now, it was their turn to borrow money, and the high interest rate made them suffer.
If he wasn't careful, he would have smashed his own foot with a rock!
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