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Chapter 635 Europe's Dilemma

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    October

    The financial turmoil of the subprime mortgage crisis originating from Wall Street spread to the European continent and quickly evolved into a global financial crisis, which had a huge impact on the European banking industry.

    ? Governments of various countries have launched large-scale relief policies one after another, trying to save the financial industry giants that are crucial to the national economy. This is a bloody moment.

    On October 5, 2008, the U.S. federal government held an emergency economic meeting between the two chambers and reached a consensus on important issues. The Federal Insurance Commission maintained the feasibility of the insurance mortgage plan and quickly promoted the 700 billion dollar rescue plan.

    On October 8, 2008, the Federal Reserve lowered the discount rate again to 1.75. Compared with the discount rate of 4% at the beginning of the year, the Fed lowered the discount rate six times and released more than 2.3 trillion US dollars of liquidity to the market.

    On the same day, the British Ministry of Finance on the other side of the Atlantic urgently implemented a rescue plan for the major mortgage bank Bradford-Bentley Bank, which was criticized by the government and the opposition.

    The "Sun" pointedly revealed in the report;

    This is a dangerous game played by the financiers of London's Warship Street and the insatiable speculators of Wall Street. These financial elites have obtained huge incomes of tens of millions of pounds.  Beauty lives a life of luxury.

    When the bubble burst and millions of workers in the British Isles lost their jobs, the government took the tax paid by the people to save the perpetrators of these evils.

    Perhaps in the whole of Europe, only HSBC can follow the rules of the game in the financial industry and bring the last hope to depositors.

    The European financial industry has been hit hard by this, and it may go back 20 or even 30 years. This is a catastrophe for the entire society

    The newspaper's remarks are somewhat exaggerated. In fact, the resilience of the world economy is beyond everyone's imagination. In just two years, it quickly recovered and regained its vitality.

    But now, European and American societies are walking in the darkest part of the tunnel, and it is not yet known when the light will come.

    ? While European and American societies were generally hit hard financially, the Chinese dragon far away in the east was not greatly affected.

    This should be thanks to Huaxia Dragon¡¯s lagging internationalization process of the financial industry, Lehman Brothers¡¯ packaged junk bonds are rarely sold to the mainland, and even more thanks to HSBC Huaxia¡¯s role as the mainstay in foreign trade, occupying most of the foreign trade.  International exchange market.

    HSBC's prudent management style has made the global financial turmoil rarely affect the Chinese mainland, but the severe economic recession brought about by the global financial turmoil still inevitably affects the exports of the Chinese mainland.

    October 7, 2008

    Spain's largest bank, Gruposantander, announced that it has accepted a government relief of 7.8 billion euros and has started merger negotiations with HSBC.

    On October 8, 2008, Fortis Financial Group, a large bank and asset company in the Benelux countries, all accepted government relief and part of its assets were nationalized. The governments of Belgium, the Netherlands and Luxembourg invested a total of 11.2 billion euros (about 16.3 billion  U.S. dollars) to this bank.

    Belgium bought 49% of the assets of Fortis Financial Group¡¯s Belgian division, while the Netherlands made an emergency capital injection to Fortis Financial Group¡¯s Dutch division, and Luxembourg agreed to provide loans in exchange for 49% of the convertible shares of Fortis Financial Group¡¯s Luxembourg division.

    On October 11, 2008, Wachovia, the fourth largest bank in the United States, was acquired by Citibank Group.

    On October 14, the German Minister of Finance announced the rescue of Hyporealestate, a holding company headquartered in Munich consisting of several real estate finance banks.

    Only one day later, on October 15, the rescue plan was suspended. The German government announced that it would invite HSBC to participate in the hyporeal estate rescue plan, and expressed its efforts to promote cooperation between the two.

    To this end, the German government will provide a certain amount of government low-interest loans to support HSBC to use market means to solve the urgent problems of the hyporeal estate.

    On the same day, the Icelandic government took over Greteler Bank, the third largest bank in Iceland, and sent someone to contact HSBC urgently, trying to get a financial rescue from the world's largest banking group.

    Despite heavy investment in Europe and the United States, the stock market has survived this dark fortnight in a sharp decline.

    Especially with the financial industry as the hardest-hit area, the best-performing HSBC and Bank of America have seen their market capitalization drop by a third. HSBC¡¯s market capitalization has dropped from US$445 billion before the financial crisis to US$306 billion, which is considered a tenacious performance.  that's it.

    The market value of many other international financial institutions has been halved,For the acquisition, Wang Yaocheng plans to realize the merger and reorganization in the form of part cash and part stock, which is currently the most feasible plan.

    "Chairman, representatives from the Belgian government and Fortis Financial Group have been waiting for a long time. When do you think we can meet?"

    "Take a 20-minute break, I think they'll be happy to wait."

    "Understood, I will arrange for them to come to the conference hall in 20 minutes, and you can receive them there."

    "Um."

    Wang Yaocheng nodded, looking through the arched windows carved out of the whole piece of red rock, looking at the sun-drenched azure cape, where the roaring waves smashed into pieces, sending out a noisy wave.

    The Manor in the Snow is located on the top of the cape, surrounded by the sea on three sides, and the warm Mediterranean wind blows in with a hint of coolness.

    Wang Yaocheng stared at the beautiful scenery outside, letting his thoughts go to get a moment of peace. These European government officials and financial industry tycoons are all poor people who want to come to him, so there is no need to pay too much attention to them.

    Europe is an old-fashioned free economic market. The government's rescue of private banks and financial institutions is extremely unpopular in the society. The emotionally charged public opinion criticizes and criticizes the elected government's reputation quickly.

    ?For the democratically elected government and the relevant ruling party, it is simply sitting behind closed doors, and disaster comes from heaven.

    Will there be no elections in the future?

    Don't need a ballot?

    Don't you need the support of the public and good reputation?

    Judging from the German government's quick change of course on the rescue of the hyporeal estate, European governments still hope that private capital will come forward and use market means to solve the current major problems. This is the fundamental reason why HSBC is particularly popular.

    In normal times, there is no need to think about such a good thing, there is no way.  (Remember the site URL: www.hlnovel.com
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