Chapter 437 Rolling interest rolling interest rolling interest
When Henry Rumsfeld worked out a low-priced purchase plan for MGM in just eight hours, Roland, who was about to rest, decided to rush back to New York from Washington, DC overnight.
The reason is actually very simple.
The reason why this group of guys were able to work out a solution in a short period of time, isn’t it to promote their negotiations with Goldman Sachs more efficiently? As a middleman connecting all parties, Roland's speed means the efficiency of negotiations.
In this way, while they showed their sincerity, they had already got Roland what he wanted in return, so it was impossible to deliberately delay, because he understood that his response would be the cornerstone of the next cooperation.
Because it was already midnight, he did not call the crew members who had already rested, but chose to travel at a speed of 80 mph for a distance of nearly 250 miles, departing at 1:00 am and arriving at around 5:00 am.
Seeing that it was still early, he quietly sneaked back to the Beekman Hotel where his wife was staying, dealt with it in the guest room for two hours, then got up to wash, and when he found that his wife had no intention of waking up, he decisively I had breakfast by myself, then picked up the kraft paper bag containing the resolution of the small bushes, and wanted to go to the hotel next door to find Goldman Sachs.
It's just that before he left, he also recruited an assistant and asked him about the results of his wife's examination yesterday. After he learned that Kate really went to the hospital for an examination yesterday, and all the physiological indicators were normal, he relaxed. in one breath.
But the corresponding doubts also appeared—
"The doctor said, why is she lethargic recently?"
"Uh..." The assistant who followed Roland when he was filming was a little hesitant.
When I met him, my eyes were a little dodgy, "The doctor said...it might be cold."
"It's cold?" This answer confused Roland, "Isn't the temperature in New York about the same as London?
Since she likes the temperature in London, how can she reject the temperature in New York? "
However, just as Roland was throwing out his thoughts, the assistant continued: "It's cold so sleep well."
"..." Such a result made Roland's eyelids twitch twice.
He always felt that something was wrong, but he couldn't tell, so he could only nod and said, "It's fine, I'll go first."
Looking at the quickly leaving back, the little assistant standing at the door of the guest room immediately let go of her hanging heart, and when she was about to get into the room and guard the wife, the question that popped up in her mind made her Suddenly woke up, and then took a step, and chased after Roland in the direction where Roland left, "Roland~ wait~ there is one more thing~"
Hearing the call, Roland stopped and turned his head, looked at the guy who was chasing him, and asked, "What else?"
"I want to tell my wife, have you actually been back?" the assistant asked in embarrassment.
"Anything is fine." Roland shrugged, thinking that this was nothing.
But the next second, he changed his mind, "Forget it, you'd better not take the initiative to tell her about it.
If she finds an abnormality and asks you, then you admit that I am back. If she does not find an abnormality, then you can pretend that you don’t know anything. After all, I don’t know how long I will be busy here. , Do you still want to go to Washington? "
Yes.
After seeing the efficiency shown by the small bushes in the shale oil issue, Roland was not sure how quickly Goldman Sachs, who also hoped to promote the transaction, would respond, but no matter how quickly Goldman Sachs needed to ask for the U.S. No matter how much time is spent on the position of Minister of Finance, and the accompanying negotiations related to Roland, it must be prepared.
By that time, Roland believed that he would have absolutely no time to take care of his wife.
When Roland arrived at Goldman Sachs and met Henry Paulson, the same waiting request as he expected appeared.
While receiving the kraft paper bag containing the negotiation conditions, Henry Paulson also asked Roland to wait for him in his office for ten minutes. He needs to communicate the conditions offered by Washington with the partners in the headquarters. Once again, and then deal with Roland about the cooperation they discussed in the past 24 hours.
Although Little Bush and Goldman Sachs have not shared with Roland their internal discussion process on the deal between shale oil and the U.S. Treasury Secretary, Roland, who has read all the unsealed documents, has already known what the core dispute between the two parties is. .
Goldman Sachs needs, that is indeed the position of US Treasury Secretary.
But the position of Minister of Finance is not actually a symbol of power, it may also be the president's megaphone.
Therefore, before the deal is concluded, Goldman Sachs must make its own demands on the power of this role.
In the first version of the plan that Henry Paulson asked Roland to hand over to the small bushes, Goldman Sachs, who had the idea of ??power and opposition, directly stated in it that when their finance minister took office, what they did The first thing is to abolish the weak dollar policy, reintroduce a strong dollar, and return the United States to the era of financial governance.
Not only that, Goldman Sachs also needs the small bush to give them the initiative to independently formulate domestic and foreign economic policies.
To put it simply, Goldman Sachs hopes to achieve that when it speaks, the whole of the United States listens!
If you are being blunt, it is Goldman Sachs, who is pushing financial governance, and wants to be the king of the United States!
And this demand is obviously impossible for the small bush government to agree to.
As the second generation ancestor who has real power and the power behind him can make him and Goldman Sachs hard-nosed, it is absolutely impossible for him to bow his head and recognize his father. Therefore, when Roland brought them this demand from Goldman Sachs, things became overwhelming. Asking price, the stage of paying back the money after landing.
After their discussion, the small bushes were handed over to Roland by Henry Rumsfeld in the kraft paper bag, which contained their conditions. According to Roland's brief review when he came back last night, he already knew that the small bushes The government agrees with Goldman Sachs to abolish the weak dollar policy and reintroduce the idea of ??a strong dollar after taking office, and in terms of domestic and foreign economic policies, they are also willing to give Goldman Sachs no less than the Secretary of State and Secretary of Defense decision-making power, and agree that Goldman Sachs enters the presidential decision-making Circle, participate in discussions on other American affairs other than the economy, and make final decisions.
This rhetoric at first glance is a regency!
Because the U.S. Secretary of State and the U.S. Secretary of Defense are in control of real power!
Colin Powell of the former, was directly holding washing powder and asking the United Nations to send troops to Iraq at the UN Security Council!
The latter Henry Rumsfeld's Global Hawk program has directly changed the global modern warfare system!
And letting Goldman Sachs enter the presidential decision-making circle and participate in the discussion of other things besides the economy seems more like inviting Goldman Sachs to extend their tentacles to other fields!
But actually...
These are actually restrictions.
Give Goldman Sachs no less decision-making power than the US Secretary of State and the US Secretary of Defense?
In the end, it was actually not higher than the president.
The reason why U.S. Secretary of State Colin Powell and U.S. Secretary of Defense Henry Rumsfeld give the outside world a feeling of **** is because they are from his father. Of course, they can replace the will of the small bush with their own will, because the hidden core is actually the will of the small bush.
What about Goldman Sachs?
It's just a guy who does pure trading with small bushes.
So, as long as they accept the proposal of the small bushes and agree to get no less than the US Secretary of State and the US Secretary of Defense's decision-making power, then they will never be able to replace the will of the president with their own will.
In addition, entering the presidential decision-making circle and participating in discussions on other things besides the economy is itself a trap.
Because while accepting, when the Ministry of Finance controlled by Goldman Sachs makes a series of policies, it will also enter the presidential decision-making circle accordingly, and everyone will discuss it together. To put it bluntly, this is a condition of equal interests. When you point fingers in your industry, your industry will also be intervened by us.
If not, then let’s flip the table together!
And this condition is obviously not in line with Goldman Sachs' ambitions, so...
What changes will Goldman Sachs make to these terms?
Roland didn't know either.
Of course, the dispute between Goldman Sachs and the bush has nothing to do with Roland. Even if the two sides quarrel and rejoice, at most it is to let him run a few more times. Now, the only thing that has something to do with him is actually Goldman Sachs. What.
When Henry Paulson entered the meeting room with a brown paper bag, and ten minutes later, he came out to receive Roland, the guy who was waiting patiently in his office also heard Goldman Sachs' bottom line.
"Based on our consensus, we don't think it's a big deal for William to serve as a consultant on House of Cards, not only that, but nothing that happens in the show will be subject to the FCC's donkey party. In other words, Warcraft Films will become the only company in the history of American film and television that produces programs without censorship or management.”
Roland was extremely happy with the decision he made as soon as he came up.
But Henry Paulson's statement, Roland did not agree.
"Warcraft Films has never thought of breaking the bottom line of the law, let alone becoming the only company in the history of American film and television that produces works without review and management.
Because from the very beginning, we invited the most rigorous reviewers to join the project team. "
"Hey hey~"
This kind of shameless words made Henry Paulson shake his head again and again, and while laughing, he didn't bother with such trivial matters, but went straight to the point, saying: "The question about the TV series, or , We have already solved the problems related to the development of Warcraft Film and Television for you. Next, we will actually discuss the subject of Warcraft Film and Television.
Since you think Warcraft Film and Television is worth 30 billion, we, who think it’s not worth it, are going to cooperate with you in another way. Goldman Sachs will set up a new company in Hollywood to provide funds for film and television companies. We hope that Warcraft Film and Television All the projects for the next five years can be contracted to this company. "
This kind of rhetoric made Roland a little confused.
"What do you mean? Are you going to send me money?"
"Yes! Just give money!"
Henry Paulson said bluntly: "Your current production fees for Warcraft Film and Television are all obtained through public funds, and the reason why we entered Hollywood requires your method of raising funds.
Now you are pledging the shares of Berkshire Hathaway to the bank to obtain cash, and then use this fund as a start-up disk to ask the bank to plan a film and television fund for you, and then, you take it through film and television The money raised by the fund is used to make movies. If you make a profit, you will pay back the principal and interest, and if you lose money, everyone will lose money together.
But in fact, you just did the least profitable link, and the real money is actually mortgage-backed bonds. "
"Mortgage-backed bonds?"
Upon hearing this term, Roland was a little confused, "What do you mean?"
"What do you mean? It's very simple!" Roland's reaction was expected by Henry Paulson, because everything he described now was a purely financial product, "mortgage-backed bonds, which appeared in the sixth century of the last century. In the 1900s, it was mainly a kind of asset securitization product issued by professional housing banks and savings institutions using the housing mortgage loans they lent.
After years of development, in addition to real estate certificates, a series of documents that can prove the ownership of assets, such as land deeds, inventory receipts, and stocks, have become the service targets of mortgage-backed bonds.
In other words, when you pledge Berkshire Hathaway shares to the bank to obtain cash, the bank can package this pledged loan contract into a mortgage-backed bond and sell it to customers in the form of wealth management products .
For example, if you pledged 1 billion shares and loaned 700 million in cash, at this time, the bank can issue mortgage-backed bonds close to 700 million, with a fixed term and repayment of principal and interest at maturity. Berkshire Hathaway's high-quality stock as collateral, low-risk and high-yield elements will attract countless customers to buy this product.
That is to say, while you get 700 million in cash, the bank also has a way to get the same amount of cash.
The difference between the interest you pay to the bank and the interest the bank pays to customers is the interest that the bank will definitely earn, and the point is that they can continue to lend with the newly obtained funds.
Of course, this is not the point. The point is that when you continue to hold 700 million in cash to create a 7 billion film and television public offering fund, the bank responsible for underwriting can also continue to earn custody fees. Not only that, At this time, we can actually do another procedure, that is, after the film project is approved and produced, we will estimate a box office for the film and calculate the corresponding profit ratio. Then, we will take back the power of the box office in our hands and continue to mortgage it to the bank. loan.
For example, the investment of "The Lord of the Rings" is 100 million, and the box office is 1 billion. After deducting the share and commission, the expected return is 300 million.
At this time, we can pledge the project contract and borrow 150 million directly from the bank.
And the bank can package your loan contracts into mortgage-backed bonds and sell them to customers.
Because the "Lord of the Rings" project is really good, in the eyes of the public, this is actually a low-risk, high-yield project. Crazy buying is the most sensible decision.
And after these three rounds, how much money will the bank make in total?
When you pledge one billion shares of Berkshire Hathaway, you get 700 million in cash, and the bank also gets 700 million in cash.
Assuming that you are given nine and the customer is given four, then you can get at least five.
Here, it is a net income of 35 million.
When raising public funds at a ratio of 10%, 700 million became 7 billion.
Even if the management fee is charged at ten points, how much can you earn here?
As for the project corresponding to 7 billion yuan, based on three times the ideal state, it can return 21 billion yuan.
The loan is halved, that is 10.5 billion.
If the loan to you is nine, and the sale to customers is five, then even if the bank can only receive four, it can earn nearly five hundred million.
Of course, these things are all small heads.
The real big deal is that the bank takes the loan contract to you, continues to find customers for financing, and then continues to lend.
This kind of revolving interest rate model is what we really want. "
When Henry Paulson presented the Hollywood financial model in front of Roland by means of oral calculations, the term 'subprime mortgage crisis' suddenly popped up in Roland's mind!
Mortgage the stock, make a film and television public offering fund, and then continue to mortgage the approved project?
Isn’t this Nima the one played by Freddie Mac and Fannie Mae!
The subprime mortgage crisis in 2008 was when banks lent loans to home buyers at all levels. Then, those who didn’t want to hold the loan contracts and wait for food, they packaged the loan contracts in their hands into wealth management products and sold them to customers.
According to the normal laws of economic development, it is impossible for this kind of wealth management product to explode.
Because housing prices have been rising, buyers are the ones who make the most of it.
But the problem is that when house prices fall and interest rates rise one day, the buyers will quit.
Since the house cannot maintain capital and increase in value, what is the point of holding it?
So, people would rather lose their house to the bank than repay the loan.
The bank that cannot recover the loan has to pay back the investor's money.
As a result, the entire industry collapsed across the board.
Although the stock pledge loans and film and television project repayment loans that Henry Paulson needs are not houses, and the repayment ability of Warcraft Film and Television is not comparable to that of ordinary people, but such things as film and television creation are the largest in the world. If you want to sell this kind of thing as a mortgage-backed bond, you are playing the same game as real estate!
As long as one movie loses money, the whole game will be ruined!
Even if a fund is created for a movie to spread the risk, in the end, it is still a gamble!
Goldman Sachs wants to play this thing?
This, this, this...
This is beyond Roland's imagination!
"No? Is this what you are all for?" Roland frowned, "But this business is not as exaggerated as you said! 7 billion investment, 21 billion repayment? It doesn't exist!
The annual movie box office is more than 10 billion yuan. Calculated according to this rate, it is 3 billion investment.
A fund of 3 billion yuan corresponds to a principal of 300 million yuan, and if you use these figures to calculate your return...
Banks don’t actually make much money. "
"Can't make much money? Is it okay?"
Henry Paulson gave a different opinion, "Do you know what an investment of 3 billion means?
If you want to make mortgage-backed bonds, it is very simple to increase the leverage ratio to 30.
That is 90 billion.
How much interest income can the 90 billion market bring?
Based on five percent, the annual money earned by the bank far exceeds what Disney, Time Warner...
And the reason why we want to vote for you is actually Berkshire Hathaway's stock pledge.
Now in the whole circle, you are the only one who can pledge Berkshire Hathaway’s AAA stock that is invincible in the bond market, and you are the only one who can continuously leverage ten times the box office in the box office market.
What we want is actually your reputation, because when such achievements are placed in front of investors, what Standard & Poor's? what moody What Fitch International? The ratings of these rating agencies will become worthless!
Because they can't predict the financial crisis, and Berkshire Hathaway can resist the financial crisis!
Because they can't predict the box office trend, but you seem to have more confidence in your project than everyone else? "
Good guy! Roland called him a good guy!
When Henry Paulson said this, Roland finally understood what these guys fancy about him!
Is earning power?
No!
is the ability to repay money!
How did the subprime mortgage crisis happen?
Isn't it that people think the house is worthless, so they don't want to repay the loan!
And what about Roland?
Will he not repay the loan because he feels that Berkshire Hathaway's stock is not worth it?
Won't!
Just this one item can make his bonds invincible in the financial derivatives market!
Because all investors know a fact—
That is, if the film and television project loses money, there is no need to worry that Warcraft Film and Television will not pay back the money!
Because during the production time of one to two years, the money lost by film and television projects is not as much as that of Berkshire Hathaway!
In this case, the core risk point in the subprime mortgage crisis has disappeared.
For Goldman Sachs, that was really a waste of money.
In addition, the performance of Warcraft Film and Television is also what they like.
When Disney, Time Warner, and Universal all outsourced their projects to Warcraft Film and Television, the earning power of Warcraft Film and Television no longer needs to be evaluated by a third-party agency. Under the condition that they can get AAA with their eyes closed, it can be sold faster. !
And when it is impossible for the borrower not to repay the money, and the profitability of the borrower is even endorsed by competitors in the same industry, is the so-called gambling with compound interest still called gambling? Isn't this just printing money with the money printing machine bang bang bang?
But for Roland...
Well, he felt he had nothing to say.
If Goldman Sachs wants to turn the film and television industry into a real capital game, then he...
Actually, I don’t mind giving Goldman Sachs the cost of financing as a benefit.
In the beginning, the reason he needed the Warren Buffett connection to borrow money from Wells Fargo was because he had no name.
Now...
It is the bank that wants to rush to lend him money.
And if it is handed over to Goldman Sachs and let Goldman Sachs make the plate bigger, it is actually a good thing for him.
After all, capital is profit-seeking.
If Roland can steadily bring a lot of benefits to Goldman Sachs, let alone trouble Goldman Sachs in the future, even if someone wants to cooperate with Goldman Sachs to deal with him, then Goldman Sachs will jump out and slap the other party!
Because for Goldman Sachs, his status is irreplaceable!
Berkshire Hathaway's stock, as long as you have money, you can buy it.
But no one can guarantee the success of the project of the film and television company.
And when the two are added together...
Roland is unique.
"All right, all right, here you go."
Roland thought for a while, and finally agreed to Henry Paulson's proposal, "However, you won't be able to get projects like "Lord of the Rings", because the financing agreement we signed with Wells Fargo Bank is for three parts. The same goes for "X-Men" and "Harry Potter", the first three are not available to you..."
This answer was also expected by Henry Paulson, "It doesn't matter, you just give us the "Pirates of the Caribbean" project first, three parts, three hundred million, and you pledge us five hundred million Berkshire - Hathaway stock is good, we will make 15 billion plates first, and we will have the opportunity to talk about the rest later..."
The clean and quick answer made Roland feel a lot of emotion.
To be honest, he really wants to do a business like this.
Because if you take out a loan and work for one year, what you earn is ten years in an ordinary industry!
But unfortunately, the financial license is not something that the rich can get.
While he was feeling emotional, Henry Paulson also pursued the victory and expressed their thoughts on Blizzard Capital and Overwatch Venture Capital. Since Roland was unwilling to sell the shares, they did not force them, but hoped that Roland would sign with them. Listing underwriting agreement.
Underwriting is actually when a company goes public, it finds someone to help it sell its stocks.
Because domestic companies do not have to worry about selling their stocks during their IPO, this situation is not obvious in underwriting.
But in the United States, this is very serious.
U.S. stocks are mostly speculated by institutions, so when a company goes public, it needs recommendations from underwriters and major funds, insurance companies, and investment banks for stock speculation, because it is impossible for institutions to place orders just by looking at a company’s prospectus.
Therefore, finding the right underwriters and letting them help recommend is very helpful for the market value of a company.
But the problem is that when this situation happened to Blizzard Capital and Overwatch Venture Capital, Roland didn't think at all that Goldman Sachs was here to help him sell stocks. Instead, he thought that this guy was here to buy stocks.
Because if Blizzard Capital and Watch Ventures are really listed, they will definitely not worry about selling them.
Don’t talk about snapping it up, even if it’s an auction like Google, it’s fine.
The underwriting in this case means that Goldman Sachs wants to get the share, and then let its own company buy it!
Can…
Well, Roland thinks this kind of thing doesn't really matter.
Because he will not push these companies to go public for the time being, and if there is a day to go public, it will be the same whoever buys them.
When Roland and Henry Paulson finished their discussion, it was already noon. Seeing that his wife didn't call him, Roland accepted the other party's invitation and settled for lunch in the Goldman Sachs cafeteria.
In the afternoon, their response to the revision proposed by the small bushes was finally released. After receiving the response document, Roland flew to Washington DC non-stop to submit their request again.
To be honest, Roland thought that when the bushes paid to help him win MGM and Goldman Sachs asked for the financial derivatives they created, their negotiations should be very long.
As an intermediary to contact all parties, he may have to fly between Washington and New York for two weeks.
But what he didn't expect was that when he submitted Goldman Sachs' revised draft to Henry Rumsfeld, the other party sent him a message that the deal had been concluded within two hours.
Not only that, a few minutes later, Henry Paulson also called to thank him for his hard work.
Such a situation made Roland a little confused, but since the matter was completed, he chose to go home.
And when he was humming and singing songs, showing great satisfaction with the benefits he got, and wanted to share his cow beep with his wife, he just opened the door of the guest room, but was confused by the voice from the living room —
"Children in infancy and early childhood have delicate and fragile skin and need special care..."
Note: ① In reality, the influence of Goldman Sachs on the U.S. government is definitely more exaggerated than what I wrote. When Henry Paulson was in charge of the U.S. Treasury Department, our Ministry of Commerce Research Institute specially issued a report. The core is actually very Simple, Little Bush begged him to take office. ② It is really possible for a film and television company to mortgage the project, get a loan from the bank, and continue to shoot new projects, but only those big companies and big series can do this. 007’s rating is only A, and there are currently only three AAAs, one Marvel, one Fast and Furious, and one Mission: Impossible, and depending on the rating, the ratio is also different. Of course, because of the high risk, all AAAs are cut in half. In other words, if you expect to receive 300 million yuan, I can only lend you 1.50 yuan. As for us, don’t even think about it, even the copyright cannot be loaned out, let alone the bank is willing to pay for the right to repay the work.
(end of this chapter)
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