America's Road To Wealth Chapter 181

  Chapter 181 Abel Changes His Investing Style

  Wall Street In December, a big event happened.

  J． P． Formal merger of Morgan & Co. and Chase-Manhattan.

   This incident announced that the two largest financial forces on Wall Street have merged into one.

  Chase Manhattan Bank, generally referred to as Chase Bank. It is also known as the Chase Manhattan Bank.

  If it's just the name, outsiders may not know the status of this bank.

  Let's put it this way, it is the financial center of the Rockefeller consortium.

   As for the other company that merged with Chase Bank, J.P. Morgan & Company.

   Just like its name, it is the core of the Morgan Consortium.

  The two companies issued a joint press communique on September 13 this year, saying that the two banks intend to merge.

  After this news was announced, many people thought it was a joke.

  Morgan merged with Rockefeller?

  Are you kidding me?

  Because this incident seemed absurd, it caused heated discussions in the United States for a day or two at that time.

   There is no news after that.

   Everyone doesn't believe it.

   As a result, in December, the two companies officially announced their merger.

  After this, now in 2000.

  JP Morgan Chase Bank, with total assets of 660 billion US dollars, officially appeared on Wall Street.

   According to David Mellon on this—

   "The Federal Reserve and FDIC are crazy! They made a T-Rex and a shark fit!"

  The entire Wall Street was in an uproar, and many people did not expect it.

  These two giants have really joined forces.

  The birth of JP Morgan Chase caused the entire Wall Street to be in a state of turmoil for a while.

   On the contrary, Abel was calmer.

  In his few memories about the United States, there is a part of the merger of these two banks.

   He knew it was only fifteen years or so after they merged.

  It has developed into a company with total assets of 2.5 trillion US dollars and total deposits of 1.5 trillion US dollars, accounting for 25% of the total deposits in the United States. It has more than 6,000 branches and is one of the largest financial service institutions in the United States.

   But before that, besides the origins of the holders behind them are rather amazing.

  These two banks are not very good on Wall Street, whether in terms of business or performance.

  For the whole of last year, Chase's annual revenue was only $22.2 billion.

  J.P. Morgan's annual revenue is even only 8.8 billion US dollars.

  The combined revenue of the two giants is only more than 30 billion US dollars.

  Profit is not even five billion US dollars.

  This revenue is not even comparable to the four major investment banks.

   Of course, this is related to their main business of commercial banking.

  Commercial banks have always been inferior to investment banks in terms of revenue.

  In the United States, the banking system is dominated by commercial banks.

  A huge system including the Federal Reserve, thrifts, savings banks, investment banks, and specialized banks.

  In it, 9613 large and small banks.

  There are more than 6,000 commercial banks.

   Followed by savings banks, about 2,000.

   Then there are investment banks, about a thousand.

  The remaining hundreds of families are investment banks, savings institutions and professional banks.

  Threshold institutions generally refer to the twelve Federal Reserve Banks.

  Professional banks include targeted banks such as the World Bank.

   As for the Federal Reserve, there is only one.

   In fact, it is the headquarters of the twelve Federal Reserve Banks.

   In other words, the Federal Reserve, the central bank of the world, is composed of these twelve banks.

  It is different from other American banks.

  The Reserve Banks of the twelve Federal Reserve Districts, whose shares are not tradable.

   And there are regulations that their shares are only allowed to circulate within shareholders.

  I didn't get their shares when they were established, and basically I can't get their shares anymore.

   When it comes to the Fed, it has too many secrets.

   Its secrets are not even known to many high-level personnel in this country.

  Confederate Rep. Wright Patman of the last century.

  This gentleman has served as the chief of the House Banking and Currency Committee for 40 years.

   During the 20 years, he continued to propose the abolition of the Federal Reserve.

  The congressman has also been trying to find out who owns the Fed.

  In the end, he announced to the public that he couldn't even find out who is the master of the Federal Reserve.

   As for whether it was really not discovered, or not, I dare not say.

   Only the congressman himself knows this.

  In short, the establishment of JP Morgan Chase announced the birth of a super giant of American commercial banks.

   It's no wonder that Wall Street is in turmoil because of its appearance.

  When it dominates all financial news.

   Abel's Pacific Bank of Commerce.

   On December 20th, successfully acquired 7 small commercial banks again.

   It seemed calm.

   For a month or so, Abel was waving the stick of dollar bills.

  After spending about 13 billion US dollars in cash flow.

   Today's Pacific Bank of Commerce has 112 branches.

  It is a medium-sized bank with total assets of 12 billion U.S. dollars and custody assets of about 100 billion U.S. dollars.

   At the same time, this also consumed more than half of Abel's cash flow.

   But both Abel and David Mellon think it's worth it.

  From now on, Smith Capital finally has its own capital turnover center and settlement bank.

  The Pacific Commercial Bank has also officially become the settlement bank and financial core of the Abel family of companies.

  Many companies under Abel Holdings.

  For example, MGM, caa, amc TV station, Isha company, YKM company, new starting point real estate, rock security, all transferred most of their business to Pacific Commercial Bank.

  Companies such as Google and ideo affected by Abel Investment Holdings also transferred part of their settlement business to Pacific Bank of Commerce.

  Just these companies have allowed the Pacific Bank of Commerce to add billions of dollars in business all of a sudden.

   Doing so will benefit both parties.

  For Pacific Bank of Commerce, it has a lot of extra business.

  You can earn more fees and interest.

   For these Abel companies, there is a sister bank of its own.

   It can also be safer when conducting fund settlement.

  At the same time, in case you need a loan in the future.

  If you have your own brother bank, you can also get certain discounts in terms of loan interest and term.

  This is why the financial core of American consortiums will always be banks.

   Who said that in the modern commercial system, commercial banks are already an indispensable and core part?

  For Abel's current core company, which is Smith Capital.

  When it invests in the market, it finally no longer needs to completely monitor the flow of funds.

  Have its own settlement bank and financial turnover center.

  It is not so easy for Wall Street giants to continue to monitor Smith Capital.

   It is also on December 20th.

  Smith Capital's second and third phases of private equity fundraising were completed, with a fundraising amount of US$10 billion.

  Let the Pacific Bank of Commerce earn more than 30 million U.S. dollars in underwriting fees at once.

   Originally, the money was earned by those Wall Street giants.

  For example, the four major investment banks were in the first private placement of Smith Capital.

   Only four of them have made more than four million dollars in profit.

   These money, now let Abel put his left hand on his right hand.

   Flowed back and forth, and finally flowed into his own pocket.

  The two private placements raised a total of 10 billion U.S. dollars, but the subscription amount reached 18.2 billion U.S. dollars.

  The subscription time is thirty-six hours.

   Also on this night.

   Contrary to the expectations of many Wall Street giants.

  The investment direction of Smith Capital this time.

   It is no longer a high-risk, but high-profit international foreign exchange or futures market.

  This time Smith Capital, this huge cash flow, began to enter the US stock market aggressively.

   What made the Wall Street tycoons even more painful was that Abel, who always liked to play with leverage, this time.

   No leverage!

   Or they don't know if they use it.

  Because if the Pacific Bank of Commerce provides leverage.

  They have no way of knowing the exact flow of funds!

   Staring at the flow of funds of an investment company is much easier than staring at a commercial bank with more than hundreds of billions of dollars in custody!

  Because they are not used as middlemen

  With the addition of Smith Capital, it already has its own capital turnover center.

   That is the Pacific Bank of Commerce.

  This makes Smith Capital, this investment, relatively secretive to Wall Street giants.

  Many people have no way to know the investment direction of Smith Capital immediately like before.

   Everyone spent a long time, used many relationships and channels, and wasted a lot of favors and money.

   Only then did I basically find out the general investment direction of Smith Capital this time.

   That is to say, if you want to check, you can check it roughly.

   It is not as easy to know as before, and it is very detailed.

   Now that everyone has found out, it is just some general flow directions.

   But exactly how much money, how much and when.

   It is difficult to find out.

   And seeing this, they re-investigated the results.

  Everyone found out that Abe Smith has changed his gender!

   It's fine if he doesn't play foreign exchange or futures, and he doesn't even play leverage.

   It's fine if you don't play these.

  This time he was honest and honest, and scattered tens of billions of dollars of funds into more than 100 companies in the US stock market.

  The average investment in each stock is about 120 million US dollars.

  This investment style has changed the impression he gave everyone before.

  Everyone found that this guy has changed from a gambler's investment to a fisherman's investment.

  What is fisherman's investment?

  It is like a fisherman fishing in the sea, throwing the big nets one by one.

  The fisherman doesn't care what he has to work for or what he can catch.

  This completely different investment style suddenly made the Wall Street magnates who were watching him very uncomfortable.

  We have studied his investment style for almost a year.

  Some companies have simulated his investment model.

  Although you can't really follow this model, you can achieve the same huge gains as him.

   But just follow this model and follow Abel's investment actions.

  Many times, Abel ate meat in front of him.

  These middlemen can also follow behind him, mixing a mouthful of soup or meat.

   Just like Merrill Lynch before, due to Charlie Schaff's insistence.

  In Abel's many investment operations, they quietly followed him to learn several times.

  Although they did not earn as much as Alberto, they also made a lot of profits.

   This is why everyone likes to stare at him.

   And Wall Street companies like Merrill Lynch are not the only ones.

  The main reason is that everyone wants to follow him, watch him eat meat, and see if they can drink soup.

  If there is a chance, you can also bite him hard when he is not paying attention or distracted while he is eating meat.

  The latter because Abel moved quickly.

   So far, no one has bitten flesh on Abel.

   But soup is also good, and you can feel full if you drink too much soup.

  But now, Abel has changed his investment style.

   This stunned a large number of Wall Street tycoons who followed him and wanted to eat soup.

  PNC Financial Services Group headquarters.

  Group CEO Sulli Winston, somewhat depressed, said to Lincoln, general manager of BlackRock Investment under PNC Financial Services Group:

   "How did he change his gender? The analysts of the company didn't say that David Mellon should have done all the previous transactions."

   "After he comes back, he will definitely come back with revenge. Or will he cut a ticket in the market?"

   "Then why doesn't he do foreign exchange or futures anymore. You must know that before this, he has never entered the US stock market."

  PNC Financial Services Group, is a financial enterprise headquartered in Pittsburgh, Pennsylvania.

   Regardless of its reputation in investment business, it is far inferior to the four major investment banks at this time.

   But its investment business is actually not inferior to the four major investment banks.

  PNC's wealth management business started from the merger of two trust companies in the 1990s.

  In the mid-1990s, BlackRock Investments became part of PNC's asset management business.

   In 1999, PNC acquired First Data Investor Services Group.

   This company is the main provider of public funds and other investment vehicles.

  The acquisition strengthens PNC's position as a major provider of global investment services.

  In 2000, BlackRock Investments has become one of the largest listed investment management companies in the United States.

  In Hereafter, with the support of PNC Financial Services Group.

  BlackRock has even become the world's largest custody institution.

   At its peak, BlackRock funds managed more than $11.5 trillion in funds!

   Of course, now in 2000.

  BlackRock Fund is not so exaggerated.

   Even with the backing of PNC Financial Services Group.

  At this time, its custody funds are around 1.2 trillion US dollars.

   Currently ranked in the top five in the United States.

   There is still a long way to go before being number one in the world.

   And the reason why it can become the world's first custody fund in the future.

   This is naturally related to its very good annualized return.

   It is because it can make money that rich people are willing to believe in it.

   is willing to put money in it to invest in financial management.

  In the end, there is an exaggerated scale of ten trillion US dollars.

  Since May of this year.

  BlackRock Fund, in fact, has been sneaky, drinking soup with Abel many times.

  Abel earned more than 10 billion in half a year, and BlackRock earned more than 3 billion in half a year.

  The reason why there is so much less is not because the BlackRock Fund has no capital.

   On the contrary, the BlackRock fund backed by PNC Financial Services Group, the worst thing is the principal.

  The reason why the income will be so much less than Smith Capital.

  This is related to the fact that the BlackRock Fund did not trust Abel at the time.

   And after all, it is a follower in these investments, and it is also worried about being pitted by Abel in front.

  In addition, in terms of the timing of exit and entry, it is naturally impossible for the trailer to react as quickly as the pioneer.

  The investment of BlackRock funds has experienced some profit retracement.

   This makes it impossible for the BlackRock Fund to compare with Abel in terms of income.

   It was originally after the Smith Investment Reception.

  Because of seeing the amazing profits of Smith Capital.

  Many Wall Street firms, including BlackRock funds.

  They were all thinking that they might as well drink soup with Abel in the future.

   To put it simply, it is to directly imitate the pace of Abel's investment.

   It's like the big ticket hot money following Soros Quantum Fund.

   Soros or Abel rushed ahead, and their hot money followed behind to make a living.

  But this time after Abel's investment reception, Smith Capital actually only made a few transactions a month.

   But the amount was very small, and it was sniped by some cheap Wall Street giants.

   Was successfully sniped!

  It made everyone realize that those investments might not be Abel's actions.

   It is the behavior of Smith Capital.

  Everyone can see this later.

   And now, the titans of Wall Street have died down in Abel for a month.

  It's time to finally move.

  Everyone also took action.

   Those who want to drink soup with him are preparing, and those who want to find a chance to snipe him are also preparing.

result

  Abel actually stopped playing foreign exchange or futures hedging.

  He ran to the US stock market!

   Facing the depressing words of the CEO of the group headquarters.

  The general manager of BlackRock Fund, Lincoln thought how could I know.

  Lincoln responded:

   "Maybe he changed? Maybe he knows our actions and behaviors? He didn't dare to take risks, so he chose the relatively safe stock market?"

  Sally Winston can't make a good judgment either.

  The main reason is Abel's sudden change in investment style, which surprised everyone.

   It's like a guy who is used to drinking and eating meat every day, and suddenly one day says he wants to be a vegetarian and become a monk.

   After seeing it, everyone will of course be very uncomfortable with his transformation.

   After thinking about it, Sally Winston said softly:

   "Looking at the current situation, let's choose to observe temporarily."

  Lincoln agreed.

   "I think so too. Because I think the sniping behavior of those cheap guys has made him realize that he is being targeted by us!"

  Sally Winston agrees:

   "Absolutely. Otherwise, he wouldn't have spent so much money in such a short period of time to set up his own commercial bank."

  For Abel's sudden change in investment behavior.

  The two giants of PNC Financial Services Group can only judge why he suddenly became cautious.

  Because he noticed that some people on Wall Street were attacking him.

   This made Sally Winston and Lincoln couldn't help complaining at the same time.

  Complaining about those guys who made millions of dollars in sniping last month, disturbing everyone's big meat.

   Let Abel now have vigilance.

  In the future, let everyone choose to follow suit or snipe.

  The difficulty will increase several times.

   But Wall Street is originally such a urine.

   Wants to bring everyone together.

  Even if the original Morgan and Rockefeller were reborn, they couldn't do this kind of thing.

   Just like the capitalists behind many other interest groups in the United States, they themselves cannot be united.

  Wall Street is full of hills, and there are also hills in the United States.

  Sally Winston and Lincoln obviously couldn't make everyone obey.

   In the end, a few mouse droppings ruined everyone's good soup.

  PNC Financial Services Group, the rat **** in the eyes of the two giants.

  Merrill Lynch's investment department doesn't think so at the moment.

  Merrill Lynch's investment department was the company that sniped David Mellon's several tentative foreign exchange investments last month.

   Merrill Lynch made millions of dollars on those investments.

   It was Mr. Stanley O'Neill, the president of Merrill Lynch, who led these sniper operations.

   Merrill Lynch Chief Financial Officer Charlie Schaaf objected.

  But today's Merrill Lynch, even CEO David Komansky is about to be emptied by O'Neill.

  Charlie's objection didn't help at all.

   And afterwards, O'Neill said to Charlie proudly:

   "Look, the invincible Wolf of Wall Street is not terrible! Isn't this still a loss to Merrill Lynch?"

   This incident once made Stanley O'Neill's already high prestige in Merrill Lynch even higher.

   Fortunately, Merrill Lynch found out afterwards.

  These transactions of Smith Capital should not be presided over by Abel Smith.

  It was done by David Mellon, the general manager of Smith Capital.

   This made O'Neill's voice in the company lower.

   It also allowed Merrill Lynch CEO David Komansky to avoid the bad possibility of being replaced early.

   Now I also want to drink some soup, or try to see if I can continue to attack Merrill Lynch.

  At this moment, I am watching Smith Capital invest more than 10 billion U.S. dollars in the stock market in more than 100 U.S. stock companies.

  In the office, Stanley O'Neal was a little dumbfounded.

   "Invest in US stocks instead of international foreign exchange?"

  The most powerful black president on Wall Street, muttering to himself.

  Beside Charlie Schaff remained silent.

   "Charlie." O'Neill didn't let him go, "What do you think Smith meant by doing this?"

   Charlie wondered how I would know.

  But as the company's CFO, he has to answer questions in this regard.

  Charlie Scharf had no choice but to try:

   "Maybe it was our sniping behavior last month and the beginning of the month. Made the other party aware of the risk? Smith was worried about the risk and decided to put his funds in safer US stocks?"

   It's kind of in Black Stanley O'Neill.

   After all, at the end of last month and the beginning of this month, Merrill Lynch's sniping behavior.

   It was O'Neill's choice, or he took the lead.

   This is almost pointing to O'Neill's nose and saying——You are the one who made a fool of yourself!

  But this explanation may be the most realistic.

   What makes O'Neill even more helpless is that Smith Capital has invested in hundreds of US listed companies.

  They are spread across the four stock exchanges and the three major stock indexes in the United States.

   There are more than ten major categories and more than 30 small categories, and there are companies invested by Smith Capital.

  Abel's investment strategy, choice and wind direction this time, there is no trace at all.

  Let everyone on Wall Street be completely invisible!

  (end of this chapter)

Chapter end