Chapter 489: Some Are Happy

[Chapter 576: Some Are Happy]

Lucas's worries were something William White had already considered when pushing this plan forward. His team of elite operatives was not going to sit idle; they'd already mapped out ways to mitigate the risks involved.

"Auto finance? What on earth is that?" someone asked.

"Tesla Motors is teaming up with Lehman Brothers and Bear Stearns, not to mention AIG and White Bank. They've devised a comprehensive plan. White Bank is offering low-interest car loans, which are then bundled and securitized by Lehman and Bear Stearns. AIG is providing full insurance," came the reply.

"When did this start happening?" another interjected.

"It's just getting underway. They've been extremely tight-lipped about it until now."

"Well, this spells trouble," came the concerned voice.

"Yes, it's a vicious cycle; White Bank's funding is practically limitless -- as long as someone buys those bonds," was the calm assurance.

"Let's be real: AAA bonds will definitely have buyers. If Lehman and Bear Stearns leverage this... oh my goodness, this could be implemented nationwide," remarked another, excitement creeping in.

...

Unlike the frayed nerves at Morgan Stanley, Lehman and Bear Stearns were relishing the moment. It had to be AAA; once they achieved that rating, plenty of overseas capital would jump in.

There were actually many companies akin to Temasek, all sharing one serious trait: a deep aversion to risk. Yield? Just as long as it's close to treasury yields, that's what they're after. High risk isn't their domain.

Somewhere, a voice quipped, "Why not just buy treasury bills then? Why complicate things?"

"Heh, that's not an option. The Americans can be incredibly assertive. If you're only owed a small amount, you can get by. But if it's trillions of dollars in debt, they'd rather go to war with you," came the sardonic response.

Morgan Stanley was weathering a storm, while Lehman and Bear Stearns were enjoying a sunny outlook. Though they couldn't quite match up to Morgan, challenging Goldman Sachs and Merrill Lynch wasn't out of reach.

Anyone with a pulse could see that this plan was going to be widespread. Even Morgan Stanley was aware that Ford had extended an olive branch, and Chrysler was beginning to get restless.

This new product was receiving high praise from peanut gallery observers. Some lawmakers suggested that the subsidies given to car manufacturers would be better off going directly to consumers. The interest rates were already attractive; with government subsidies added, the profits would be off the charts.

Sudden changes left several investment banks dumbfounded. Suddenly, continuing their vacations seemed like a distant dream. If they wanted to avoid being ousted, they had better come up with a strategy quick.

...

Merrill Lynch was faring decently -- it didn't have too many entanglements with William White. Morgan Stanley and Goldman Sachs were the ones sweating bullets. It was clear now that White had long had a plan, purposely avoiding their involvement.

"If they hadn't supported Murdoch, others would be the ones suffering now. That damn William White really knows how to hold a grudge," someone groused.

"Can anyone explain why Goldman was sidelined? If I recall correctly, William White and Goldman had a pretty cozy partnership," another questioned.

Goldman's shareholders were fuming; the current economic climate was bleak, and everyone was on the lookout for breakthroughs. Now that there was one -- though unfortunately for them, it was someone else's initiative -- the frustration was palpable.

Religious beliefs and racial issues were trivial matters to this pack of wolves. Offending a powerful figure over some nebulous news conglomerate? That was simply foolish.

"Ladies and gentlemen, we didn't want it to come to this. I promise we'll repair our relationship promptly. In fact, Mr. Hagg has already gone to Los Angeles. Please give us a little time," came an attempt at reassurance.

That's how capitalists operate -- support you one moment, then turn on you the next. The numbers painted a clear picture: stocks for Lehman, Bear Stearns, and AIG were all going up while their own wealth was plummeting.

Faced with such a situation, it was only natural for them to lose their cool. Of course, they had ways to respond, such as coercing those companies to give up some stake. Greed has never led to happy endings.

Even so, the failed power struggle felt like a gnawing wound. The securitization of those loans was clearly just the beginning. From this foundation, countless other products could emerge, all understood by the Wall Street elite. It was merely a matter of differing mathematical models at play.

Not long ago, William White had suffered an injury, and they'd all relished the thought. Now, a minor issue for him translated to a major setback for them. If he continued on this path, who could predict what might happen next?

William White abstaining from investment banking was already a gesture of goodwill. If those fools had any sense, they would have responded in kind long ago.

...

Murdoch was on the verge of tears; this latest obstacle looked insurmountable. If he didn't want to end up broke, leaving the scene swiftly was his best option. Returning to Australia to tend sheep was no worse than remaining in this quagmire.

He fully understood he'd merely been used as a pawn -- slapped around at will, just like a kid on a rainy day, finding nothing to do.

"Darling, you'll be in Australia tomorrow, right?"

Nicole shot him a glare. "Of course, I'm spending Christmas with my family."

"Uh-huh, but it's summer there. What's Christmas supposed to be? Santa will end up getting heatstroke. Might as well stay in LA," he teased.

"This place probably won't get any snow either; never mind, it's all settled -- I'm going on vacation with my parents," she replied.

"Make sure not to get sunburned, come back early. You have no idea how much I adore you." For the thick-skinned and sly William White, flattery was merely par for the course. Ironically, he also found some twisted joy in seeing the misfortunes of Australian scoundrels. 

"Be careful, darling. There's a lot of chatter about your injury going around."

"What are they saying about me?"

"Pfft, some claim you have a chronic illness," she laughed.

"Come on, it can't be true. Ugh, looks like I really need to hit the nightlife more often," he replied, shaking his head.

As outrageous as he was, he wasn't entirely wrong. By comparison to the Hollywood crowd, William White was far from sinister. From that perspective, he was a pretty decent kid.

His current partners and the women with whom he'd been linked had all come away relatively unscathed. At least, until now, he hadn't heard anyone close to him call him a jerk openly.

Fine, there may be some mutterings, but at least not in public. As for what they said behind closed doors?

Who cared!

There's never been such a thing as a free lunch in this world -- breakfast hadn't changed either. If you want something, you've got to give something up. That's simply the way the world operates.

...

While William White reveled in his romance, Morgan Stanley and Goldman Sachs were anything but calm. Even if external forces were heavily displeased, they had no intention of entrenching themselves in a standoff with White.

Reality hit hard; the assets under William White's control had long surpassed a hundred billion. Though the inflation of the last decade had been serious, the dollar hadn't depreciated that much. Starting a war with someone of similar strength was just plain dumb.

It's often said that cash is king, and William White had that down to a science. Even with high taxes to pay, his businesses maintained robust dividends. In a way, it was also a measure of risk control.

*****

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