So, on September 21, 2008, Morgan Bank and Goldman Sachs Bank announced that they had obtained permission from the Federal Reserve to change from an investment bank to a commercial bank. They could directly absorb deposits from society. Everyone, hurry up and deposit your money directly in my bank, and then use it to fill the hole of the subprime mortgage crisis!!!
This sounded very fantastical because Morgan Bank was also affected by the subprime mortgage crisis. It had only been less than half a month since the bank changed its nature.
In this half a month, the two banks actually completed what was known as the most difficult procedure in history, which was to change from an investment bank to a commercial bank.
This required countless complicated procedures. It required the permission of dozens of relevant departments in the United States. Finally, it required the approval of the general commander and the approval of the parliament.
Logically speaking, it was impossible to complete such a tedious process in less than two to three years, and this was with the blessing of God and everyone giving the green light to you. If there were one or two links that were not agreed, this was impossible.
But the two banks only took half a month to do it. But the problem was that even if they changed from an investment bank to a commercial bank, it was impossible to absorb 800 billion dollars of deposits in a short time.
After all, the people of the United States had been scared silly by the news of the collapse of various large banks. They instinctively grasped the small money in their hands. It was impossible for them to save money in a bank that had been exposed to owe 800 billion dollars.
Fortunately, Rector Morgan also knew this, so he never expected to absorb 800 billion dollars of deposits from the people. The deposits naturally came from other sources, and the speed was very fast.
On September 23rd, two days after JPMorgan Chase Bank was converted into a commercial bank, the US Ministry of Finance announced that a portion of the budget will be deposited in JPMorgan Chase Bank. To ensure the safety of the funds, the funds will be placed in various banks to prevent the funds from being affected by one bank.
So Morgan Bank directly received a huge deposit of up to 900 billion dollars from the Ministry of Finance. Overnight, all of Morgan Bank's funding problems were solved, and the Ministry of Finance seemed to have forgotten about the 900 billion dollar problem. Until more than ten years later, there was no intention of withdrawing the 900 billion dollars.
Well, the budget of the Ministry of Finance had always been a mess. Even the Minister of Finance couldn't figure it out … Or rather, the Minister of Finance was the most confused person in the Ministry of Finance.
After all, the Secretary of the Treasury was one of the cabinet members, and cabinet members were replaced faster than the president. Almost every United States commander had to change the Secretary of the Treasury two or three times, and the average Secretary of the Treasury only worked for less than two years.
Do you think it's possible for a Finance Minister, who was elected and had nothing to do with mathematics, to sort out the complicated financial relationships and figure out all the funding problems of the finance department in two years?
Even if there was really a genius who could do this, the two-year period was up, and they would have to move and change careers. Therefore, the people who knew the finance department the best were actually the civil servants in the finance department.
According to the US civil service system, these people would basically stay in the finance department for the rest of their lives. They were the ones who knew the finance department's financial situation like the back of their hand. These people were either friends of the Morgan Financial Group or were directly sent to the finance department by the Morgan Financial Group. This was also the reason why Morgan Bank could get 900 billion USD in deposits so quickly.
"I actually want to go to war with these monsters in the United States, I'm really crazy!" In the Daqian chairman's office, Boss Jia, whose skin had almost turned bronze after returning from the disaster area, looked at the latest news from the United States and sighed in admiration.
Seeing Rector Morgan get 900 billion dollars in funds with just a few words, and it was completely in line with the laws and regulations of the United States, without any legal risks, and the entire United States government cooperated as if Rector Morgan was their father, Boss Jia couldn't help but sigh. Was he stupid to want to fight against Rector Morgan in the United States?
After all, he still had to work hard to make money, but Rector Morgan could directly transport money from the banknote printing plant. Except for the lack of the central bank's right to issue money, Morgan Bank was really no different from the central bank.
In fact, if the central bank was under the supervision of countless pairs of eyes at all times, Morgan Bank, which could directly obtain deposits from the Ministry of Finance, had a much better life than the central bank of the United States.
"But in this way, we can finally build our power station with peace of mind!" He Guagua, who was also bronze, sighed.
"Yes!" Boss Jia nodded with a smile. "God is still very kind to us. Rector Morgan's trouble is not over yet. They should not be able to take care of us for the time being!"
Rector Morgan's trouble was indeed not over. Although the crisis of Morgan Bank had been resolved, a bigger crisis had come. The three major automobile companies, General Motors, Ford Motor Company, and Chrysler, announced almost at the same time that the government must save them, or they would collectively go bankrupt.
These three automobile companies could be said to be the leading enterprises in the United States' automobile industry. They accounted for 80% of the United States' automobile industry and were also the three mountains of Detroit.
In the world's top 500 compiled by Fortune Magazine, these three companies had never fallen from the top 10. But in the blink of an eye, these three companies announced that they were going bankrupt. What the hell was going on?
The answer was very simple. It was because the bank was collecting money.
In fact, these three automobile companies had long been insolvent because of their bloated corporate structure and declining market share, which led to the three major automobile companies, GM, almost relying on bank loans to survive.
Without bank loans, they would have gone bankrupt 10 years ago. They had only survived because of the blood transfusions of various investment banks and commercial banks.
But this was also normal. Most companies in Hua Xia relied on various loans to survive. The more involved the physical industry, the more so. Only the two weirdos, Daqian and Apple, could make the company's cash so much that they could not find a financial channel.
The United States government was actually well aware of this. Considering that the three automobile companies had millions of employees, if these three companies went bankrupt, the United States would instantly collapse. Therefore, these loans were authorized by the United States government to let the banks not care about the repayment ability of these three companies. They just needed to give the money, and if something went wrong, the government would take care of it.
And this further made the three automobile companies arrogant. Anyway, with the government backing them, it was no problem for them to squander money as much as they wanted. For example, the giant crystal chandelier in the lobby of GM's building, which was said to be worth 300 million US dollars, was proudly installed when GM was losing tens of billions of US dollars every year.
As for whether this crystal chandelier was worth 300 million US dollars, 3 million US dollars, or even 300,000 US dollars, only God knew.
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