Chapter 1049: The Fraud of the Century
Chapter 1029: Fraud of the Century
With the continuous development of the economy, a unique financial street was slowly formed around the Vienna Stock Exchange.
Here gathered the Holy Roman Empire one-third of the banks, forty-five percent of the securities companies, other types of financial companies are more numerous.
It can be said that all the financial enterprises with a little bit of strength have set up their strongholds here. The strongest ones even occupied a building alone.
Of course, those with strength in any place were a minority. To be able to own an office building in the financial sector where every inch of land was gold, even leasing it was not something an ordinary enterprise could do.
It wasn’t just a matter of money. There are so many rich people here that everyone knows each other’s bottom line, and pretending to be a fool will turn into being a fool.
With trepidation, Abarbonel quickly stepped into the Newfoundland Building and rushed to the Appel Commercial Bank where he worked.
As an old-school commercial bank in the German region, Appel Commercial Bank, because of poor management, not only did not keep up with the wave of the times, but also in the impact of competitors under the deterioration.
Especially in the stock market crash a year ago, Appel Commercial Bank had a large number of bad debts on its books because of its misjudgment.
On the verge of bankruptcy, Appel Commercial Bank quietly changed hands. As a new employee of the bank after the change of ownership, Abarbonel, who had just entered the society, was “highly valued” by his supervisors from the very beginning.
But now, Abarbonel did not want this kind of “importance” in the least. A loan to the Spanish government is a thrill to think about.
It is not that Abarbanel is presumptuous, it is Appel Commercial Bank’s strength is limited. “Seventy million” Guilders of the loan, Appel Commercial Bank drained can not even come up with half.
Draining the bank is obviously impossible, and the Vienna government regulators are not idiots. This kind of stupid behavior that could cause a run on the crisis will certainly lead to interference.
Not only did the risks, which had been personally spelled out to his superiors, not work, but the daunting task fell to Abarbonel.
According to his bosses, “the bold die young, the timid die hungry”. If you can’t take it on alone, find someone else to do it with you.
Originally, Abarbonel thought to find people to join forces, is to find a few peers to form a bank group. If so, although the risk is a little big, but there are a number of banks to share, it is not impossible to do.
Soon Abarbonel realized that this was not the case, the bank group that lent money to the West did not appear in the list of Appel Commercial Bank, but this loan still exists.
This meant that the 70 million guilders commercial loan they were now taking on was not the same loan that the Vienna government and the Spanish had finalized.
A high-risk international loan, with no government involvement and no strong mainstream banks involved, Abarbonel very much doubts that this is a joke.
Reality told him it was true. The loan did exist, and it was not a big, well-known bank that teamed up with Appel Commercial Bank, but instead some small lending company that he had never heard of.
These unseen guys were able to come up with so much money? Abarbonel was very skeptical that the supervisor was being scammed.
……
“Abarbonel, has the contract with the Spaniards been signed yet?”
Just entering the door before he could catch his breath, Abarbonel was greeted with a question from his boss.
Such an important commercial loan was left in the hands of a newcomer like him, it was intoxicating to think about.
According to the bank’s internal staff, Abarbonel was the illegitimate son of the current president and boss. Otherwise, this kind of business with a generous commission would never have been his turn.
If the difference in looks wasn’t too great, plus the certainty that he was biological, Abarbonel would have had a suspicion.
“Not yet, Mr. Adler. The Spaniards have made new conditions, and they demand that no less than ten percent of the money be released in the first week after the contract is signed.
The matter is too important for me to take the liberty. Just make an appointment with the Spaniards to negotiate on the subject again to-morrow afternoon.”
Doubtful as he was, Abarbonel still had great respect for his burghers. Even with the suspicion that the loan, which might have been approved after Adler’s brain was in his head, Abarbonel did not insist on opposing it.
Perhaps there are unseen benefits here, playing with finance, never less and various forces to deal with. Sometimes in order to secretly benefit, do a few loss trade, is also completely normal.
Adler’s eyebrows slightly wrinkled, soon stretched out: “Well, good job. This kind of thing, it really isn’t suitable for you to make the decision.
Tell the Spaniards that it’s too tight to release the money within a week. This kind of huge loan has never been this fast.
In order to minimize risk, we must avoid the Spanish government’s misuse of the loan, and supervision is inevitable.
The bottom line is that the first disbursement cannot exceed 3 million guilders, and thereafter the weekly disbursement cannot exceed 500,000 guilders.
The rest is up to you, as much as possible for the bank.”
Obviously, Adler’s heart was not as calm as it appeared on the surface. Especially after hearing the Spaniard’s request that a tenth of the first week’s disbursement be made, his heartbeat accelerated.
It was only that Adler hid it too well, and Abarbonel had too much respect for him to notice it in time.
“Mr. Adler, the Spaniards have already agreed with the government and received a commercial loan of seventy million guilders, and now we re ……”
Without waiting for Abarbonel to finish his sentence, Adler interrupted, “Abarbonel, you are still too young.
Although the Philippine War is over, there are still hundreds of thousands of rebels on the island waiting for the Spaniards to exterminate them; now the Cuban rebellion has broken out again, and there is still a possibility of change in the Moroccan region.
So many problems have come together, obviously as a result of the intervention of an international power. Whether Spain can win the war or not I don’t know, but I’m pretty sure seventy million divine shields won’t be enough.
If we weren’t really short of money, the Spanish government wouldn’t have borrowed from us. It’s a bit risky, but the rewards are lucrative enough!
Besides, we’re just leading the way, and the ones who are really going to pay are still the small loan companies. Even if something goes wrong with the loan, our losses will be limited.”
It felt like there was a problem, but didn’t know what the problem was. Confused, Abarbonel nodded out of habit.
After dismissing Abarbonel, Adler sighed deeply and secretly sighed, “People’s hearts are not ancient.”
At this time, he had to be glad that he didn’t leave the business in the hands of an old man in the bank. The young man just out of school can find the problem, if it falls into the hands of the old man, it is possible that now he will go to the regulatory department to drink coffee.
Don’t doubt everyone’s motivation to report, according to the rules of the Vienna government, the reward for successful reporting of serious violations of commercial loans is at least not less than one-tenth of the total amount of the loan.
Seven million guilders is already enough to drive anyone crazy. You have to know that Appel Commercial Bank is not even worth seven million. How could one miss the chance to become rich in one day?
Of course, Adler is also to be prepared. Even if he is reported, the big deal is that the loan will not be done, and there is still no problem to take himself out.
Loan violation is not false, but the place of violation is not in the Appel Commercial Bank, but in the back of the small loan company.
On the surface there is no connection between the two sides, even if there is really a problem, Adler is only suspected, and can not be convicted for this. Banks are not police officers and are not obliged to trace the source of investors’ funds.
Picked up the microphone and dialed the phone. Adler indifferently said: “The Spaniards seem to have scratched the surface of what, you must now speed up.
I will sign a contract with the Spaniards as soon as possible, and if the momentum is not right, then ……”
Without waiting for Adler to finish his sentence, the other end of the phone interrupted, “Don’t worry, Adler. I’m not a fool, there’s no law in the Vienna government that says: investment companies can’t raise money overseas.
Even if the regulators find out, they won’t be able to convict us. You won’t be involved in this, as long as the Spanish government doesn’t default on its obligations, things won’t get out of hand.
The Spaniards have just reached a loan of seventy million guilders, and with this loan from us, the Spanish government, no matter how much it loves to squander, will not go bankrupt for a while.
As long as we control the amount of loans issued each time, even if the Spaniards discover our purpose, they will pretend not to know anything.
After you help us with this job, Appel Commercial Bank will be yours. Whether you roll up the money and run away, or continue to operate, that’s your business.
Riches and riches, you wouldn’t be afraid to take this little risk, would you?”
……
Ending the conversation, Rivera didn’t feel relieved. He had paid a big price for this big plan.
Not only did he put up big favors and use all the connections he could, but he even gambled his own life.
It wasn’t that Rivera wanted to take risks, it was really that the losses from the previous stock market crash were so significant that he owed a huge amount of foreign debt.
The capital market is cruel, in front of the interests, there can be no friends. If he couldn’t pay his debts, the first ones to send him to heaven would be his friends in business.
Rivera is also a lot of words to persuade the debtor. In fact, it wasn’t much of a persuasion. In order to collect the debt, it was necessary for Rivera to get rich first.
It was easy to go bankrupt, but hard to get rich. The ways to get rich quickly were all written in the penal code, and Rivera could only choose one of them to implement.
After much deliberation, Rivera decided to “cheat”. It was an ancestral skill, the most skillful and the most skillful.
With his previous contacts and the help of his creditors, Rivera soon found a group of like-minded people.
Not only did he form a purse investment company, a small loan company, but he even acquired an Appel Commercial Bank that was on the verge of bankruptcy.
Originally Rivera was ready to find the Russians, after all, the tsarist government is corrupt enough to buy a few officials to cooperate, you can carry out the plan perfectly.
Unfortunately, the Russians had too bad a reputation to come up with a way to fool investors.
As the economic crisis continues, a small European countries continue to go bankrupt, Rivera once to despair, just this time the Spaniards emerged.
There is no other way, must be seized ah!
According to the plan, first and the Spanish government signed a return generous contract, and then take the contract out to fool investors.
Benefit sharing, not afraid of the Spanish government does not cooperate. Anyway, once there is a thunderstorm, the lending financial company will go bankrupt and run away.
No matter how high the interest rate of the loan is, how harsh the conditions are, anyway, the debtor has run away, naturally, there is no need to pay back.
……
Throughout the month of April, the Vienna government’s newspapers were splashed with two events. One was the National Day parade, and the other was the two “seventy million” Shendian loans.
Appel Commercial Bank, which had never been known before, became the new star of the banking industry in the Holy Roman Empire.
For commercial banks, being famous is a good thing, which means more business will come to the door; at the same time, it is also a troublesome thing, which is easy to attract the attention of the regulator.
However, Appel Commercial Bank and the Spanish government is a transnational loan, the procedure is legal, but only a little higher interest.
This is the commercial bank’s freedom of operation, people themselves are not afraid of risk, so what else is there to say.
As long as the lending leverage ratio within the national regulations, did not trigger the bank cash flow tension, resulting in obvious credit risk, the regulator will not intervene.
Along with the bank together with the famous, there is an investment company, at the moment the salesman is holding the signed contract, around the opening of the investment seminar.
As for the promise to Adler, just to raise money overseas and not to make things happen at home, that’s a joke.
If the promise of a liar could be believed, there would be no deception in this world.
……
“Here comes the biggest opportunity of the century to get rich!”
“Applause if you hear me.”
……
“Let’s do some math together, according to the contract with the Spanish government, the fee is 12%, so:
7000*(1-12%) = 61.6 million dollars
At an interest rate of 11.2% per year, with debt service over 30 years, we can deduct the first installment:
67.48*12=877.24 million
61.6-877.24=52.8276 million
That means for a 70 million loan, the actual amount we need to pay is 52,827,600,000, and the effective interest rate has gone to 16.6%.”
“Is that all?”
“No. We can also work out the direction in which the loan will be used. For example: designate the goods of certain domestic enterprises in the back, so long as they do not exceed the market price, the Spanish government cannot refuse them.
This means we still have an intermediary fee to earn, ten percent on civilian goods and thirty percent on weapons and ammunition, not too much, right?”
“The combined calculation of 20% is good, 5286.76*0.2=10,565,520,000, rounding off the zeroes to the nearest whole, the intermediary fee is 10,560,000.”
“By the time we get here, we’ve actually paid back nearly 3/7 of the 70 million Shendian loan, and the return on investment has risen to ……”
(End of chapter)