Chapter 401: Lehman Went Bankrupt

In a conference room at Capet Pictures headquarters in Burbank, Los Angeles, the TV was broadcasting the news of Lehman Brothers, the fourth largest investment bank on Wall Street, declaring bankruptcy.

Not only did Donna Langley and the senior executives gasp, but even the assistant, Phyllis Jones, found it somewhat unbelievable.

The 158-year-old Lehman Brothers filed for bankruptcy, causing a chain reaction that plunged the credit market into complete chaos.

Faced with $613 billion in debt and a company that crumbled overnight, the more than 20,000 employees of Lehman Brothers had no choice but to leave.

In the wake of the severe subprime mortgage crisis, the board of directors, unable to find a satisfactory buyer despite hard efforts, had no choice but to apply for bankruptcy protection.

"The Treasury saved Bear Stearns, took over Fannie Mae and Freddie Mac, and the Federal Reserve supported many large enterprises. It seems there are many reasons for Lehman Brothers' bankruptcy," Donna Langley smirked. At their level, everything revolves around interests.

"Bank of America acquired Merrill Lynch. Goldman Sachs and Morgan Stanley also requested to convert to commercial bank holding companies from the Federal Reserve. It's unquestionable that the Federal Reserve will approve their request. After the conversion, Goldman Sachs and Morgan Stanley can absorb deposits and permanently enjoy the right to obtain emergency loans from the Federal Reserve," Michael Lynn said with some sentiment.

"The era of the Five Big Investment Banks on Wall Street is finally over!"

Two transitioned, two were acquired, and one went bankrupt.

Charles showed no expression as he watched the huge number of unemployed walk out of the Lehman Brothers building on TV.

Some were dressed in casual clothes, while others were still dressed in suits as usual, but without exception, all were carrying their various belongings, dragging suitcases or holding boxes, etc.

Many laid-off employees couldn't contain their disappointment and anger, shouting and cursing at the reporters who had come to witness the scene...

"Warren Buffet said that all the companies on Wall Street are like people who swim naked. This time, Merrill Lynch surprisingly made it to the shore without drowning," Charles quietly commented.

"Maybe, Hollywood will have to consider the funding sources from Wall Street for the next pooled investments," Charles smiled.

"Annie, keep in touch with those Middle Eastern tycoons. I don't like the smell of oil, but I do like the smell of American dollars!"

Chief Financial Officer Anne Depp smiled, "I'll keep up with it."

"There's no problem with the production plant plans in Atlanta and Montreal. Start them as soon as possible. Try to get as many local land resources and tax exemptions as possible; our production plants can definitely solve a lot of employment issues and boost the local economy!"

Charles couldn't wait to expand his entertainment empire, and running the production plants was clearly a part of his strategy.

Back in his office, Charles was still smiling. Lehman Brothers' bankruptcy marked the climax of the financial tsunami, and the $700 billion bailout plan from the U.S. Congress passed immediately.

As the Federal Reserve printed money at full throttle, it also implemented a strong-dollar policy, drawing international capital into the United States.

U.S. Treasury bonds? Price increase!

In the afternoon, Charles attended the opening ceremony of the Capet Grand Theater, located in the southeastern corner of Capet Studios in Los Angeles.

The new theater, capable of seating over 1,500 people, could not only host various musicals, stage plays, movie premieres, award ceremonies, and press conferences.

The creators of the movie Mamma Mia! also attended the opening ceremony, as the Mamma Mia! musical was set to start there soon.

Mamma Mia!'s North American box office of 145 millions of dollars, combined with its overseas box office of 470 million, made it this year's highest-grossing movie for Capet Pictures.

After a long absence, Charles Capet appeared before the media, which inevitably swarmed him with questions.

"Charles, how much did you make during the subprime crisis?"

"Charles, are you traveling abroad because you have new plans?"

"Buying the Miami Dolphins, purchasing the Trump Tower in Manhattan, does this mean you're losing confidence in Capet Entertainment's future?"

"Charles, what's your opinion on Lehman Brothers filing for bankruptcy protection?"

"Do you have anything to say about the upcoming presidential election?"

Microphones of various lengths were pointed at Charles. He maintained a smile and gently raised his hand, "You have too many and too mixed questions.

However, everyone's most concerned about the complete disorder in the credit market caused by Lehman Brothers' bankruptcy! My opinion? Simple. They're just a bunch of naked swimmers. When the tide goes out, you see things more clearly.

The Wall Street crisis is definitely impacting Hollywood heavily. If the government's bailout fund does not include plans for Hollywood, I believe many people in Hollywood won't stand for it. Hollywood's contribution to the U.S. is undeniable. If the government can't see that, it would be unfair to all of Hollywood!"

Claps and applause surrounded Charles, be it from the guests at the opening ceremony or the reporters. They all showed their support for Charles standing up against Washington.

It was Charles' first time publicly criticizing the government for neglecting Hollywood. After all, the $700 billion bailout fund provided too little for Hollywood.

Now, as the representative of the American Dream, the youngest mogul in Hollywood, the child blessed by God himself, Charles led Hollywood in striving for subsidies, naturally earning strong support.

"Charles, that was fantastic! The Bush administration doesn't care about Hollywood at all," Meryl Streep, the lead actress of Mamma Mia!, praised Charles in the theater lounge.

Charles smiled, "It's difficult. Washington's primary concern right now is stabilizing the financial market. Maybe we'll have to see how many changes and subsidies can be squeezed out of state cultural industry tax plans."

Meryl Streep and Capet Pictures had shared significant success with The Devil Wears Prada, and Mamma Mia! was another hit.

Thus, Meryl Streep was somewhat familiar with Charles, making conversation easy.

"Perhaps we're not putting enough pressure on them!" Meryl Streep, a standard Hollywood leftist, an eloquent self-serving saint, speculated.

Charles nodded and then went to chat with Scarlett Johansson, who had come for the event.

*****

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