Chapter 1451: The Third of the Five Major Investment Banks on Wall Street

London, England, inside the Rothschild family manor, a group of short sellers gathered together once again.

This time, they all had gloomy expressions on their faces, and the once carefree and relaxed mood was long gone, replaced by endless pressure.

After scanning the room to count the number of people, Nelson Longo proposed to Evelyn Rothschild:

'Evelyn, let's get started. Everyone is here except for a few people in Xiangjiang.'

Evelyn Lochiel nodded and began today's meeting.

'Gentlemen, we all hope that this is a meeting to share the fruits of victory, but unfortunately, the result is the opposite. We have lost!'

As soon as these words were spoken, the atmosphere in the room instantly became a bit heavier.

Evelyn Lochiel seemed oblivious and continued, 'There are many reasons for this failure, the most important of which are three.'

'First, the enemy's political power was so strong that our attacks in the political arena did not have the desired effect.'

'Second, the enemy had a variety of strategies, and our plans were disrupted, so that we fell into the enemy's trap and did not exhaust the enemy's funds sufficiently.'

'The third point, and the most important one, is that the enemy's hard power exceeded our estimates. Until we lost, we had not measured the enemy's true capital.'

'So we deserved to lose!'

'Hey...'

'We really deserved to lose.'

As Evelyn Lochiel finished speaking, there was a sigh in the room.

'Clap!'

At that moment, Evelyn Lochiel clapped his hands, attracting everyone's attention. Then he raised his voice and said, 'Okay, gentlemen, I didn't say all this to discourage you, but to remind you, and myself, that we must pay the utmost attention to the enemy!'

'We lost this battle, but we still have a backup plan, and we still have a chance to turn defeat into victory!'

'But this opportunity only comes once!'

'If we lose again, then we will suffer even more serious losses.'

'And once we win, then at the very least we have a chance to offset the losses from shorting the stock market, and it is even possible to completely reverse the entire battle situation and regain the victory that originally belonged to us in the stock market!'

Eric Schroeder knocked on the table and said solemnly, 'Evelyn, everyone knows this, let's discuss the backup plan directly.'

'A backup plan has already been drawn up, attacking the Hong Kong currency market, but the situation is slightly different from the plan, so let's discuss it one last time.'

Seeing that Eric Schroeder had said so, Evelyn Locher didn't argue anymore, and said, 'Since everyone can't wait, let's discuss it one last time.'

Then Evelyn Locher instructed his assistant to distribute a stack of printed backup plans to everyone. After seeing that everyone had received one,

He cleared his throat and continued to chair the meeting: 'Our backup plan is to destroy Hong Kong's currency market, but whether it can be achieved depends on how the Hong Kong government chooses to respond.'

'Hong Kong currently implements a linked exchange rate system, pegging the exchange rate to the US dollar at 6.1:1. Once we attack the Hong Kong dollar exchange rate, the Hong Kong government will have few options.'

'The Hong Kong government can either raise interest rates to increase the cost of our short selling, or implement foreign exchange controls to disrupt our short selling, or announce that it has abandoned the linked exchange rate system and chosen to surrender.'

'Of course, we predict that the Hong Kong government and our enemies will choose to stick to the exchange rate and fight us for capital.'

'This last point is something we don't want to see, but it is highly likely to happen.'

'...'

Evelyn Lochir spoke at length, explaining the context of the backup plan in great detail.

Afterwards, the group began to further analyse and judge.

According to their analysis, the last thing the Hong Kong government is likely to do is implement foreign exchange controls and restrict foreign exchange.

This is what the mainland is doing today. Although the official exchange rate is controlled, the black market exchange rate cannot be controlled, so that the difference between the black market and official exchange rates for the renminbi against the US dollar is more than double!

Hong Kong is completely different from the mainland because it is a free trade port, not only a key node in the global financial system, but also a crucial trading hub. The daily trading volume is huge, and once foreign exchange controls are implemented, Hong Kong's economic development system will be hit hard.

So this is the last measure the Hong Kong government would take.

In fact, what they would like to see most is for the Hong Kong government to directly abandon the linked exchange rate system and replace the Hong Kong dollar with the US dollar to a floating exchange rate. This is equivalent to the Hong Kong government directly tearing down the defensive walls of the financial market.

As for the possibility of the Hong Kong government raising the interest rate on interbank lending, the impact on them can be great or small. If they want to borrow a large amount of money, then the impact will be great, and if they don't borrow, then the impact will be small.

In any case, given their current situation, this group of people all have a large amount of capital in their hands, which is enough to launch an attack on the Hong Kong stock market.

Unless their attack fails and the battle becomes a protracted one again, then if they and the international hot money that follows their lead want to borrow money, the impact of such an interest rate increase will be significant.

After analysing it over and over again, combined with Xia Yu's character and his influence on the Hong Kong government, the Hong Kong fixed income linked exchange rate system is dead set against them, and this is the most likely outcome!

Before they knew it, more than an hour had passed.

The backup plan had also been completed and changed, and it had become the action plan to be implemented starting tomorrow.

'Okay, since everyone has reached an agreement, then we will carry out the plan as planned.'

'Including the Hong Kong dollars originally held by our Hong Kong branch and the funds recently cashed out, all of our institutions currently hold a total of 331.8 billion Hong Kong dollars. According to the current exchange rate of the Hong Kong dollar to the US dollar, we can convert 54.4 billion US dollars.'

'And Hong Kong's foreign exchange reserves only have 11.78 billion US dollars, which is only about one-fifth of what we need.'

'But this time we must win!'

'We only have two days to prepare, and the tasks assigned to each of us must be completed in full!'

...

After the meeting ended, everyone immediately got to work.

Although it was already the end of the trading day in Hong Kong, the preparatory stage of their two-day operation was not going to be easy.

According to this plan, they must drag more institutions into the water and strengthen their strength once again, even if they have to give up some of the cake!

And the institutions chosen are undoubtedly giants.

Evelyn Rothschild needs to take down Goldman Sachs, Bear Stearns and Lehman Brothers.

These three are the top investment banks on Wall Street, occupying three of the top five investment banks on Wall Street!

Most importantly, these three have one thing in common.

The people behind the scenes are all Jewish!

They and the Rothschild family are natural allies!