Car-hailing Driver: Rewards from Complaints

Chapter 636: Chapter 260: Rewarded with Quantum Chip Technology

Once the ten banks that accepted Jinling Phoenix Gold Ornaments’ gold as collateral confirmed the gold was fake, they immediately issued announcements to explain the problem to the public.

Although the wording varied across banks, the general meaning was similar.

First, there was no issue of interest transfer or the like between them and Jinling Phoenix Gold Ornaments.

Second, all the gold had undergone instrumental verification and the suspension method test, confirming it was real gold. They simply weren’t aware that Jinling Phoenix Gold Ornaments had used tungsten, iridium, lead, and other metals to evade the suspension method and instrumental detection.

Third, they were willing to actively cooperate with relevant departments for investigation and evidence collection.

Fourth, they had already called the police, accusing Jinling Phoenix Gold Jewelry Co., Ltd. of defrauding loan collateral with fake gold.

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These statements indicate that banks and other institutions are trying to absolve themselves of responsibility, placing all the blame on Jinling Phoenix Gold Ornaments.

Moreover, there’s another crucial point: these banks have concealed the fact that they used the same batch of gold for secondary collateral and financial products with other financial institutions and trust companies.

On the surface, Jinling Phoenix Gold Ornaments defrauded banks and other institutions of 30 billion with 85 tons of fake gold, but in reality, this batch of fake gold managed to leverage funds up to 90 billion.

The simple logic is: Jinling Phoenix Gold Ornaments, controlled by the Jiang Family, redeems the 85 tons of gold at current prices, and the banks can return the money to other financial institutions, enabling them and trust companies to pay back clients who bought financial products.

Now that the gold has been proven fake, it means if Jinling Phoenix Gold Ornaments cannot redeem this fake gold at current prices, banks will have no money to repay other financial institutions, and those institutions and trust companies won’t be able to pay out the maturing financial products to their clients.

This is a chain reaction; if the source has a problem, subsequent issues will naturally arise.

If the amount were small, the banks could cover it and get through.

But this involves a financial line of 90 billion, and banks belong to the state. How could the state allow them to bear this cost?

So now, all the pressure has shifted to the Jiang Family.

However, the Jiang Family also left themselves an out.

Jinling Phoenix Gold Ornaments is a limited liability company. If the Jiang Family cannot repay that money, they could just go bankrupt and liquidate. Besides selling off pledged assets, shareholders only need to repay debts based on the registered capital of 500 million.

Of course, this is the ideal outcome, but now they’re facing banks and multiple financial institutions, with a major case involving 90 billion in leveraged funds. Forget the Jiang Family; even if it were Yang Chen, if he couldn’t settle this, he’d be dragged into it as well.

Indeed, just as Jiang Zhengtian was about to instruct to play rogue, authorities came to him directly.

The authorities were very clear: Jiang Family, as the major shareholder with a 90% stake in Jinling Phoenix Gold Ornaments, must redeem the 85 tons of fake gold at current prices.

After the redemption, they could have the charge of defrauding banks mitigated.

Jiang Zhengtian initially wanted to negotiate by repaying based on the original 30 billion standard.

However, the authorities disagreed.

Because banks took this batch of gold for further collateral, trust companies converted it into financial products, calculating returns based on the current gold price.

If the Jiang Family repaid according to the original 30 billion, the banks and trust companies would have to bear the part where this gold appreciated; how is that possible?

In just three days, gold already topped 400 yuan/gram, and Wall Street had sent word, predicting that gold prices will continue climbing over the next half year, potentially surpassing 500 yuan/gram.

However, those financial products and collateral loans have only 15 trading days left before maturity; if they fail to pay by then, it’s sure to cause a financial storm, something not solvable by the Jiang Family liquidating assets to cover losses.

Moreover, then the Jiang Family wouldn’t just face fraud charges but also disturbing the financial order, with a financial case involving 90 billion. Jiang Family’s relevant personnel could be sentenced multiple times over.

Jiang Zhengtian had no choice but to urgently sell everything they could and asked banks and the securities commission to release that 27 billion fund promptly.

At this point, the Ning Family stepped in.

Ning Wuque and Ning Shaoqing visited the responsible authorities with significant gifts, requesting them to deliberately delay the fund release for 2-3 days.

Based on the current gold price momentum, a surge to 500 yuan/gram in three days was foreseeable.

Procedurally, they could indeed delay for 2-3 days, so the authorities accepted the Ning Family’s request.

Three days later, the Jiang Family sold everything, raising 42 billion in funds.

By then, gold prices had reached 480 yuan/gram, meaning the Jiang Family needed to pay 40.8 billion to redeem the 85 tons of fake gold.

Yet now there’s another issue.

Since the collateral and payout dates are 12 workdays away, with gold prices still rising, the Jiang Family wanted to redeem immediately, but banks and trust institutions were unwilling, insisting they wait until the maturity date.

At this point, over 80 people, including Jiang Zhengtian, were detained in a detention center awaiting trial.

The 12 trading days passed quickly, and gold prices reached an astounding 525 yuan/gram. After 3 PM, banks and other institutions immediately demanded the Jiang Family redeem that gold.