Leaving Greenwich, Simon and Girl A headed back to their estate in the northern suburbs.
In the back of the black Bentley, as the car cruised along the lush suburban roads, Allison finished reviewing the day's work log to ensure nothing was missed. She glanced at Simon, who had been busy all day and was now resting with his eyes closed, and decided to speak up. "Someone has been pursuing Girl B recently."
Simon opened his eyes, smiling as he asked, "Who?"
Allison, noting Simon's relaxed demeanor, smiled and replied with a touch of gossip, "A partner from Long-Term Capital Management, named Mark Shinaw. He's a very accomplished analyst, with a Ph.D. in mathematics from MIT. Last year, when John Meriwether left Salomon Brothers with his team, B tried to recruit them to develop the bond analysis model for Alia, but it didn't work out. Long-Term Capital Management set up its headquarters in Greenwich earlier this year, and they've met at some gatherings. Mark Shinaw began pursuing B last month."
Simon remarked, "A partner at LTCM? He must be quite old."
Allison clarified, "He's 31."
ABCD, who had started working for the Westeros family four years ago, were just out of college at the time and were now in their mid-twenties. A 31-year-old suitor wasn't particularly old, especially given his status as a partner at a high-profile hedge fund.
Simon nodded slightly and asked, "What's B's attitude? And, is the guy good-looking?"
Allison explained, "B was clear from the start that her career is just beginning and she's not looking for a relationship right now. But Shinaw hasn't given up. He sends her flowers every morning at the office." She paused, then added, "He's not as handsome as you, but he's taller, and he was reportedly a basketball player in school."
Simon said, "That's nice. B is at an age where she can consider dating, as long as they manage their time well. I imagine they're both quite busy, so that lifestyle might suit them."
Allison, slightly surprised by Simon's response, asked, "You don't mind?"
Simon chuckled, "Of course I mind, but it's more like a father seeing his daughter being taken away by a bad boy. Though you might think of me as the evil villain, I genuinely wish you all well in finding the right partners."
Touched by Simon's sincerity and his self-deprecating humor, Allison smiled, "I'll relay your message to B."
Simon continued, "You should find someone soon too, so I can replace you with a younger, prettier assistant."
Despite the teasing tone, Allison's smile didn't falter. She moved closer, resting her head on Simon's shoulder, and whispered, "Do you really like that kind of play?"
Simon feigned ignorance, "What do you mean?"
Allison, not embarrassed, leaned closer and whispered, "The other night in Columbus, I was in the room next door."
Simon replied with mock annoyance, "Looks like I'll have to tear down and rebuild that villa; the soundproofing is terrible."
Allison, knowing that Simon would indeed have the villa torn down if he wanted, quickly explained, "It wasn't the walls, it was the balcony doors. You forgot to close them."
The Columbus villa, a two-story European-style brick building, had decent soundproofing compared to wooden structures. However, the upstairs rooms each had a balcony, and if the doors to the balconies were left open, sounds could easily carry from one room to another.
Hearing this, Simon lightly pinched Allison's chin, saying, "Seems like you didn't close your balcony door either. Maybe I should punish you."
The word "punish" made Allison's breath quicken, and she clung to Simon's hand, not bringing up the previous topic again. Instead, she shifted the conversation, "Boss, you don't seem to like Long-Term Capital Management."
Simon asked, "What makes you think that?"
Allison explained, "Earlier this year, we had a chance to invest in LTCM's fund. Mrs. Westeros approved it, but you personally vetoed the project."
Long-Term Capital Management (LTCM) was once a household name in the financial industry, albeit not for the best reasons.
Founded by John Meriwether, a celebrated banker from Salomon Brothers in the 1970s and '80s, LTCM became synonymous with a particular style of bond arbitrage. Meriwether's team had once contributed more than half of Salomon Brothers' profits, making the firm one of Wall Street's most formidable investment banks.
However, after the 1992 scandal where Salomon Brothers illegally manipulated the government bond market, the firm began to unravel. Meriwether, who headed the bond trading division and was blamed for the scandal, left with his team, unscathed, and went on to establish LTCM in February of this year.
LTCM quickly garnered attention due to Meriwether's impressive track record and the fund's unique arbitrage model. Major financial giants like Goldman Sachs, Lehman Brothers, and Bear Stearns, as well as several politicians, eagerly invested in LTCM despite its above-average profit-sharing ratio of 25% and other stringent conditions. In no time, LTCM raised $1.25 billion in its first fund, diving into business.
In Simon's memory, LTCM thrived for a few years after its inception, boasting annual returns exceeding 40% from 1992 onwards.
Then, everything came crashing down in 1998.
LTCM was staffed by some of the world's brightest minds, including two Nobel Prize-winning economists. They created sophisticated models to arbitrage various bonds based on interest rate differentials, leveraging these models with up to hundreds of times the capital to maximize profits.
However, these models presumed a rational market, failing to account for extreme events like the 1987 stock market crash. In 1998, Russia's economic crisis led to its default on $10 billion of government debt, triggering a global bond market collapse—a scenario LTCM's models had deemed impossible.
Before Russia's default, the market had already been declining. LTCM, relying on its trusted models, predicted a rebound in the bond market by the latter half of 1998. They couldn't imagine Russia, a major sovereign nation, would risk its international reputation by defaulting on its debt, nor that other nations would refrain from intervening to stabilize the market.
Yet, the worst-case scenario occurred. Russia defaulted, the bond market plummeted, and LTCM, with only $4 billion in capital, faced positions exceeding $1 trillion, mostly long positions. The resulting market crash left LTCM on the brink of liquidation within a week.
This was just the beginning. LTCM's losses, coupled with its inability to cover the vast positions, risked a default that could have caused a financial catastrophe far exceeding Russia's default, threatening global financial stability and potentially triggering another Great Depression.
To prevent disaster, the Federal Reserve intervened, coordinating with Wall Street giants to bail out LTCM. They pooled $3.6 billion, on top of LTCM's own $4.6 billion losses, to unwind the fund's dangerous positions and avert a global market collapse.
Reflecting on this, Simon told Allison, "LTCM's team put too much faith in their models, overlooking the unpredictable nature of the markets. Even in the U.S., the stock market has seen significant crashes roughly every decade. I remember hearing about Meriwether's bond trading department at Salomon losing billions during the '87 crash. They clearly didn't learn their lesson. With their past successes, they've lost respect for market risks; failure is only a matter of time."
Allison nodded thoughtfully, then brought up Girl B again. "So, why are you okay with B dating someone from LTCM?"
Simon smiled, "That's a separate issue. Regardless, they're a group of geniuses. And Mark Shinaw is only 31. If he faces setbacks now, he'll mature, like Laurence Fink did. After losing money at First Boston, no one at Cersei Capital is more focused on risk management than he is, which is why I trust him with billions in assets."
Allison looked at Simon, teasing, "You sound like an old man."
Simon feigned annoyance, "An old man?"
Allison leaned in closer, whispering into Simon's ear, "Boss, I can be just as bold."
"Hmm?"
Allison edged closer, boldly calling him a term of endearment.
Simon's reaction was stronger than hers, prompting Allison to muster more courage. However, as she was about to continue her mischief, the car pulled into the estate.
As they reached the villa, Simon gently reprimanded Allison, reminding her to be more reserved, while she obediently followed, her head lowered in a demure fashion.
Inside, they were greeted by the Indian girl, Alia, who informed Simon, "Boss, Mrs. Fecie came by this afternoon, and Mrs. Spurlock also arrived with three ladies. They're in the living room."
Alia took Simon's coat and accompanied him to the living room.
The living room buzzed with conversation. Besides Sophia Fecie and Grace Spurlock, there were three stylish young women—newly appointed Victoria's Secret Angels, selected from a list Grace had provided to Simon earlier.
As Simon entered, the women paused their conversation and stood.
Simon didn't shy away from hugging Sophia first, asking, "Weren't you all supposed to come over on Friday?"
Sophia adjusted Simon's collar and replied, "I just wanted to drop by. Things have been slow lately." She gave him a playful look, knowing his plans for the evening included other women.
Feeling Sophia's teasing gaze, Simon could only smile back before turning to Grace. He intended
only a handshake, but when she opened her arms for a hug, he obliged to avoid awkwardness. "Good afternoon, Grace."
Grace felt her heart flutter as they embraced, a sensation she found unexpectedly intoxicating. She had noticed Simon's initial hesitation but couldn't resist leaning in for the hug.
After the brief embrace, Grace introduced the three young women: Kirsty Goff, Eva Herzigová, and Daniela Pestová, the new Victoria's Secret Angels.
Though Kirsty had seen Simon from afar at the "Batman: The Dark Knight Rises" premiere last month, she and the others had never interacted closely with the young billionaire until now. In recent months, the three women had felt the immense influence of Simon Westeros, catapulting them from obscurity into the spotlight with a single decision from him.
Thus, when Grace arranged for them to undergo medical examinations and then hinted that they would spend the evening with Simon, they didn't resist. Instead, they complied, understanding the power dynamics at play.
Human nature often leans towards submission in the face of overwhelming power, even if many privately dismiss or disdain such authority figures. But when confronted directly, few dare to defy or criticize. When these figures wield the power to elevate or destroy lives, submission becomes almost instinctive.
_________________________
[Check out my Patreon for +200 additional chapters in all my fanfics! $5 for all!!]
[w w w . p a t r e o n .com / INNIT]
[+50 PowerStones = +1 Chapter]