Wall Street, New York, Gale Capital Investment Company.
Today, Henry Jugenburg, head of Dwind Capital, and several key members of the team will give a comprehensive formal report to Kyle, chairman of Dwind Capital, on all financial and accounting aspects of the Asian financial crisis from the end of December to mid-May.
In fact, it is not just Gale Capital that is doing the final inventory!
All the major investment companies on Wall Street also closed their operations in May. Of course, there is no denying that this was because Asian countries and regions had already survived the financial crisis. There was another reason, which was the fourth of the seven rules of Wall Street - the May liquidation rule.
"Let's get started."
Following Kyle's order, everyone in the meeting room became serious.
Henry Jugenburg stood up, turned his back to the projector, and said loudly, "Boss, everyone. From December 29, 1997, to May 16, we used the company's remaining $55 million to enter the Japanese foreign exchange market for the second time. Then, along with a group of international speculators, we returned to the financial markets of Southeast Asian countries and regions, repeatedly extracting wealth."
"Currently, this segment has generated $270 million in profits!"
The words fell.
Everyone present, including Kyle, applauded enthusiastically.
Although this profit of US$270 million is far less than the profit of more than US$1.4 billion in the first and second stages of the financial crisis, it is still quite remarkable to be able to make this money in the turbulent "post-Asian financial crisis".
After all, during the entire financial crisis, the bulk of the profits were concentrated in the early and middle stages. In the later stages, as Asian countries and regiondish oututututututsted their financial industry policies, there was not much profit left.
Of course, Kyle was very happy!
You know, this $55 million capital is entirely Kyle's personal investment.
Well, even if a portion is deducted now for Henry and the specific operators, the remaining funds are still more than 220 million US dollars.
So, Kyle's overseas personal account,
There is no doubt that it will add another fortune.
"Henry, tell me about the external investors we have attracted, including the returns on their funds," Kyle said with a smile again.
"Okay, boss!"
Henry Eugenburg responded and took out another document from the materials in front of him.
"Boss, everyone. As of the 16th of this month, we have attracted a total of 8,812 external investors, totalling $610 million in capital."
"After several days and months of operations, this amount of funds has now been converted into $740 million."
"The half-year profit ratio is 0.21%!"
"Thus, while our total operating capital is insignificant compared to other major investment firms on Wall Street, our profit margin over the past six months has surpassed 84% of all investment firms. This is due to the financial crisis, which has dramatically increased the wealth of major investment banks. Otherwise, our profit margin would have surpassed 91% of all other firms."
After the words were spoken, everyone became excited again.
Kyle was also very pleased.
I never thought that I could make so much money by using the money from external investors.
A normal and reasonable financial investment company absorbs funds from external investors and uses this money to invest in gold, stocks, foreign exchange, silver, crude oil, bonds, etc., thereby earning the difference and service fees.
"Wall Street investment firms don't invest their own money!"
——The Third Rule of Wall Street.
Strictly speaking, Kyle's previous investment behaviour in the foreign exchange market was not the normal operation of a qualified financial investment company.
After all, it was Kyle's own money!
"Henry, what is the minimum profit we currently promise to the outside world?" Kyle asked.
"8.5%. The return for one period is 8.5%, and the duration of one period is 3 years." Henry responded.
Oh shit!
You wouldn't know until you calculated it. Once you had calculated it, Kyle found that this was an extremely profitable behaviour!
After a split second of thought, Kyle added, "According to you, the average investment per investor we currently attract is only $69,000? No! This threshold is too low. We need to raise it!"
Henry nodded and pointed to another executive of the company.,
—Andy Chernopoulos.
Andy Chernopoulos, also a veteran Wall Street practitioner, stood up and replied, "Boss, Mr Jugenburg and I are actually already considering the issue of the capital threshold for entry."
"Oh?"
Kyle became interested for a moment.
"Boss, after a month of collecting information and half a month of discussion, we have drafted a proposal on the entry threshold amount."
A temporary proposal was naturally presented to Kyle.
$100,000!
That's right, the capital entry threshold has been raised to US$100,000!
In other words, if your investment does not exceed US$100,000, Gale Capital Investment Company will not accept it.
Does a big store bully customers?
In fact, Gale Capital's entry threshold of US$100,000 is far inferior to that of large investment banks.
The standard for large investment banks basically starts at one million US dollars.
At the same time, Kyle saw in the proposal that the upper limit of the number of investors per period was 20,000. This was to ensure a minimum profit ratio while achieving high returns.
If the plate is too big and exceeds one's own ability to bear, it is easy for something to go wrong.
For example - the Madoff scam!
Bernard Madoff, former NASDAQ chairman, was the perpetrator of the largest financial fraud in American history, operating a Ponzi scheme that defrauded over $60 billion. In June 2009, Madoff was sentenced to 150 years in prison in New York for the fraud.
He is a very greedy guy!
He promised high returns to external investors, attracting a large number of wealthy people to invest in his foundation.
What if we don't make money?
Rob Peter to pay Paul!
In fact, Bernard Madoff's foundation was unable to achieve the return ratio he promised, so it had to lie and falsify information to attract funds from new investors to make up for the returns of old investors.
The truth will come out sooner or later!
In the end, he could only end up miserably!
Part of his failure was because he accepted everything and spread his plate too wide!
....
After the meeting.
Kyle and Henry had a long talk about the partnership system of Gale Capital and the distribution of company shares.
That's right!
Kyle wanted to dishad tribute 35% of Gale Capital's shares to Henry and his team, transforming Gale Capital, which was solely owned by Kyle, into a financial partnership investment company that was standard on Wall Street!
Is Kyle willing?
I can only say "yes"!
To put it bluntly, financial investment companies mainly look at the ability of talents!
If you don't give them shares in the company and let them become partners, they will definitely take the company's resources and personal resources and jump to other companies the next day. They have no moral integrity or loyalty at all.
Don't doubt it, this kind of thing happens every day on Wall Street!
Soros' Quantum Fund, Merrill Lynch and other large Wall Street investment banks all have a partnership system! May 21st.
Wall Street, New York, Gale Capital Investment Company.
Today, Henry Jugenburg, head of Dwind Capital, and several key members of the team will give a comprehensive formal report to Kyle, chairman of Dwind Capital, on all financial and accounting aspects of the Asian financial crisis from the end of December to mid-May.
In fact, it is not just Gale Capital that is doing the final inventory!
All the major investment companies on Wall Street also closed their operations in May. Of course, there is no denying that this was because Asian countries and regions had already survived the financial crisis. There was another reason, which was the fourth of the seven rules of Wall Street - the May liquidation rule.
"Let's get started."
Following Kyle's order, everyone in the meeting room became serious.
Henry Jugenburg stood up, turned his back to the projector, and said loudly, "Boss, everyone. From December 29, 1997, to May 16, we used the company's remaining $55 million to enter the Japanese foreign exchange market for the second time. Then, along with a group of international speculators, we returned to the financial markets of Southeast Asian countries and regions, repeatedly extracting wealth."
"Currently, this segment has generated $270 million in profits!"
The words fell.
Everyone present, including Kyle, applauded enthusiastically.
Although this profit of US$270 million is far less than the profit of more than US$1.4 billion in the first and second stages of the financial crisis, it is still quite remarkable to be able to make this money in the turbulent "post-Asian financial crisis".
After all, during the entire financial crisis, the bulk of the profits were concentrated in the early and middle stages. In the later stages, as Asian countries and regions adjusted their financial industry policies, there was not much profit left.
Of course Kyle was very happy!
You know, this $55 million capital is entirely Kyle's personal investment.
Well, even if a portion is deducted now for Henry and the specific operators, the remaining funds are still more than 220 million US dollars.
So, Kyle's overseas personal account,
There is no doubt that it will add another fortune.
"Henry, tell me about the external investors we have attracted, including the returns on their funds." Kyle said with a smile again.
"Okay, boss!"
Henry Eugenburg responded and took out another document from the materials in front of him.
"Boss, everyone. As of the 16th of this month, we have attracted a total of 8,812 external investors, totaling $610 million in capital."
"After several days and months of operations, this amount of funds has now been converted into $740 million."
"The half-year profit ratio is 0.21%!"
"Thus, while our total operating capital is insignificant compared to other major investment firms on Wall Street, our profit margin over the past six months has surpassed 84% of all investment firms. This is due to the financial crisis, which has dramatically increased the wealth of major investment banks. Otherwise, our profit margin would have surpassed 91% of all other firms."
After the words were spoken, everyone became excited again.
Kyle was also very pleased.
I never thought that I could make so much money by using the money from external investors.
A normal and reasonable financial investment company absorbs funds from external investors and uses this money to invest in gold, stocks, foreign exchange, silver, crude oil, bonds, etc., thereby earning the difference and service fees.
"Wall Street investment firms don't invest their own money!"
——The Third Rule of Wall Street.
Strictly speaking, Kyle's previous investment behavior in the foreign exchange market was not the normal operation of a qualified financial investment company.
After all, it was Kyle's own money!
"Henry, what is the minimum profit we currently promise to the outside world?" Kyle asked.
"8.5%. The return for one period is 8.5%, and the duration of one period is 3 years." Henry responded.
Oh shit!
You wouldn't know until you calculated it. Once you calculated it, Kyle found that this was an extremely profitable behavior!
After a split second of thought, Kyle added, "According to you, the average investment per investor we currently attract is only $69,000? No! This threshold is too low. We need to raise it!"
Henry nodded and pointed to another executive of the company.
—Andy Chernopoulos.
Andy Chernopoulos, also a veteran Wall Street practitioner, stood up and replied, "Boss, Mr. Jugenburg and I are actually already considering the issue of the capital threshold for entry."
"oh?"
Kyle became interested for a moment.
"Boss, after a month of collecting information and half a month of discussion, we have drafted a proposal on the entry threshold amount."
A temporary proposal was naturally presented to Kyle.
$100,000!
That's right, the capital entry threshold has been raised to US$100,000!
In other words, if your investment does not exceed US$100,000, Gale Capital Investment Company will not accept it.
Does a big store bully customers?
In fact, Gale Capital's entry threshold of US$100,000 is far inferior to that of large investment banks.
The standard for large investment banks basically starts at one million US dollars.
At the same time, Kyle saw in the proposal that the upper limit of the number of investors per period was 20,000. This was to ensure a minimum profit ratio while achieving high returns.
If the plate is too big and exceeds one's own ability to bear, it is easy for something to go wrong.
For example - the Madoff scam!
Bernard Madoff, former NASDAQ chairman, was the perpetrator of the largest financial fraud in American history, operating a Ponzi scheme that defrauded over $60 billion. In June 2009, Madoff was sentenced to 150 years in prison in New York for the fraud.
He is a very greedy guy!
He promised high returns to external investors, attracting a large number of wealthy people to invest in his foundation.
What if we don't make money?
rob Peter to pay Paul!
In fact, Bernard Madoff's foundation was unable to achieve the return ratio he promised, so it had to lie and falsify information to attract funds from new investors to make up for the returns of old investors.
The truth will come out sooner or later!
In the end, he could only end up in a miserable way!
Part of his failure was due to the fact that he accepted everything and spread his plate too wide!
....
After the meeting.
Kyle and Henry had a long talk about the partnership system of Gale Capital and the distribution of company shares.
That's right!
Kyle wanted to distribute 35% of Gale Capital's shares to Henry and his team, transforming Gale Capital, which was solely owned by Kyle, into a financial partnership investment company that was standard on Wall Street!
Is Kyle willing?
I can only say "yes"!
To put it bluntly, financial investment companies mainly look at the ability of talents!
If you don't give them shares in the company and let them become partners, they will definitely take the company's resources and personal resources and jump to other companies the next day. They have no moral integrity or loyalty at all.
Don't doubt it, this kind of thing happens every day on Wall Street!
Soros' Quantum Fund, Merrill Lynch and other large Wall Street investment banks all have a partnership system!