Bush's original intention was to hand over Fannie and Freddie Group to Bank of America and other financial companies to let them take over and tide over the difficulties.
But he didn't expect that the scams of these two companies were so big.
In Feng Yu's view, it was also Fangzheng and Fangzheng who were courting death. If they did not falsify the accounts, perhaps things would not be so serious. However, those shareholders were blinded by greed and made such a decision in order to protect their own interests.
It was human nature for shareholders to value their own interests more. Seeing that the company was about to be finished, even if they could get through this crisis, they wouldn't be able to recover in a short period of time.
Another important point was that the shareholders of many financial companies had been cheated by the US government. They had used their own money to cover up the trap and protect the interests of the government.
When personal interests conflicted with the government's interests, they chose personal interests. As for the investors who bought the bonds and shares of Fannie and Freddie, they did not care at all.
There are many ways for the shareholders to get out of trouble. They just need to give up some benefits.
Now they were going to give up the shares of Fannie and Freddie Group, which they were eager to do. The shares of the two Fannie and Freddie Group were still in high demand two years ago, but now they were almost like poison.
Whoever had it would end up losing it, and they would have to constantly take out their own money to fill the hole.
This pit was so huge that even the richest man in the world like Feng Yu couldn't fill it up.
What Fannie and Freddie Group wanted most was for the US government to take action. Not only would the US government give them money, but they would also cooperate with the introduction of some relevant policies, so that they could really help Fannie and Freddie Group through the difficulties.
They used to be the biggest sponsor of the US government and had a good relationship with Congress. But that was when they had money and could help the government do many things.
Now, not only did they have no money, but they also had to ask the government for money. Of course, the government's attitude had changed drastically.
How did Feng Yu know that the two groups were going to be taken over by the government?
This wasn't Ralph's information, but Feng Yu's analysis of the current situation.
The executives of the two groups were replaced again, and many of the shareholders disappeared. Through some complicated financial means, as well as inducing other shareholders to buy their shares, they successfully escaped.
It seemed that they had given up a lot of assets and lost a lot of money, but they had thrown away an even bigger burden. In fact, in the past few years, they had already made enough money by holding the shares of Fannie and Freddie.
It was actually very common for a new batch of executives to be appointed.
It was normal for the management of the company to be replaced due to poor management. However, none of the executives who were replaced held shares of Fannie and Freddie, and several of them were former government consultants.
This was a very strong signal of the Bush administration's attitude.
But these were not enough to make Feng Yu firmly believe that the government would take over the two groups. What made Feng Yu certain was that several former executives of the two groups … were dead!
In particular, the company's senior vice president, chief financial officer, and other important executives were among the dead. What could people associate with this?
What could the second-in-command of the company and the first-in-command of the finance department do together?
Tampering with the company's accounts, making false accounts, helping former shareholders get out of trouble, and letting some people behind the scenes leave with the bags of money.
These executives were announced to have committed suicide. It was said that they could not bear the pressure and felt sorry for their investors, so they chose to end their lives.
Only a ghost would believe such words!
If they didn't violate the rules, even if they made a wrong decision, they wouldn't have to bear much responsibility. After all, they weren't the chairman or the CEO.
They could even resign and get rid of their current lives. It was never said that the company's executives couldn't resign when the company encountered difficulties. I'm not capable enough. Can't I give my position to someone more capable?
But they were all dead. Wasn't it too strange to say that they committed suicide?
However, these news were forcibly suppressed by the US government. Even some media moguls didn't report too eye-catching this time. They only mentioned it because several of these media moguls were also inextricably linked to the two groups.
Not only a few executives died, but some important middle-level managers, financial commissioners, and so on also died. Of course, they all "committed suicide."
This caused some accounts to turn into real dead debts!
Originally, some accounts could be checked by the people who handled them, but now the people who handled them had turned into ashes. Who could you find to check?
As long as these accounts were signed and stamped, then they were legal. Even if you were sure that there must be something fishy in this, and some people had obviously benefited from it, you could only choose to accept it.
This was the saying, "dead men tell no tales!"
In Feng Yu's previous life, this also happened to the two groups, but it only happened next month, and there were not so many people.
After this happened, the two groups were completely taken over by the US government. Maybe it was also under the pressure of some people behind the scenes.
The situation in this life was the same. After this happened, although the public did not focus on it, it still greatly affected the reputation of the two groups.
Then the shares of the two groups will continue to fall, and the bonds of the two groups will be sold more fiercely.
Now, simply injecting capital into the two groups is not enough, because some stocks or bonds will instantly swallow up the funds.
Simply put, no matter how much money you throw in, it will all go to waste. Unless you can take out more than 500 billion US dollars at once, collect all the bonds, and pay off all the debts, then you can make money.
This is impossible. They can't even solve the debts of the two groups.
It has risen to 600 billion US dollars. Compared to the assets of the two groups at this time, which is less than 100 billion US dollars, the debts are more than five times the assets. How can they not go bankrupt?
But once the two groups go bankrupt, the crisis will be unstoppable, and the US financial market will definitely not be able to bear it. Bush Jr. is about to step down, and at this time, what he wants to do the most is not to let the two groups go bankrupt during his term.
As long as he can delay until he successfully steps down, then the problem will be solved by his successor. Didn't Obama have a lot of supporters? That Hill is also very ambitious. Come and try to sit in my position. I want to see how you solve this problem.
If Feng Yu sat in this position, he can only choose to let the government take over first, and then talk to some debt institutions to reduce the interest or delay the payment to ease the financial difficulties. In addition, the government will introduce some policies and take out a sum of money to prevent the two groups from going bankrupt for the time being.
No matter what, these two big traps will definitely be a trap for the US government!
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