Manhattan Reborn 1978

new York.

sunset.

In an office at Morgan Bank, the lights are brightly lit.

Panaris and Elder were sitting at a desk, looking at the materials in their hands carefully. On the phone, they introduced to Old Morgan the legal affairs and professional analysts under them in recent days, and analyzed and compiled the information about MBS. Project research report.

"Lewis Ranieri, who once worked at Salomon and proposed the MBS project, is now the leader of our MBS project team."

"Among the materials he brought us, there are several legal documents that we have never paid attention to before. Here, I will briefly introduce them."

“Beginning in 1968, the federal government enacted a series of laws specifically targeting consumer credit in the past ten years.”

"These bills have initially formed a complete legal basis system, unifying and standardizing the credit market across the United States."

“Among them, the Fair Credit Act (tila) is the earliest bill introduced among the consumer credit bills and is also the most fundamental cornerstone of the bill. It has strict and clear regulations on the content, format, and language of information disclosure provided by lenders to consumers. The purpose of the regulations is to make the costs and terms of credit products not only true and reliable for consumers, but also uniform, so that consumers can conveniently choose the products they need."

“Based on Tila, the Fair Credit Reporting Act (fcra), which was implemented in 1971, regulates the collection of credit information by credit reporting agencies and the use of credit information by users, preventing credit reporting agencies and users from exceeding Applies to credit reporting abuse.”

“In 1974, Congress passed the Equal Credit Opportunity Act, which explicitly prohibited discrimination in the credit approval process due to factors such as race, gender, nationality, marital status, etc.”

"In addition, the Community Reinvestment Act (CRA) promulgated in 1977 also prevents bank real estate credit business from avoiding poor areas with underdeveloped economies."

"This year, the newly enacted Fair Collection Practices Act (fdcpa) of 1978 is used to regulate the relationship between lenders or collection agencies and borrowers."

“At this point, the overall consumer credit legal system is basically completed.”

"According to the analysis of our bank's legal staff, in the next 10 years at least, the above bills will basically not be revised or supplemented again."

“Also, the Federal National Mortgage Association (Fannie Mae) was established in 1938. Its main function is to raise low-cost funds from the market to acquire residential mortgage loans with Federal Housing Administration (FHA) and insurance. , this move promoted the initial development of the secondary market for housing mortgage loans and also constituted the original form of the MBS market."

"Beginning in the 1970s, the Federal Home Loan Mortgage Corporation (Freddie Mac) began to acquire traditional home mortgage contracts and issue MBS-like participation certificates (participant certificates)."

"This MBS-like participation certificate has been given the same rights as FNMA by Freddie Mac."

"And the RMBs that David once proposed to Lewis is a financial derivative variant of MBS."

"So, our researchers proposed a new derivative product project, cmbs, based on rmbs!"

"To put it simply, mbs includes rmbs and cmbs."

"Their basic assets are respectively, rmbs: residential mortgage loan contract; cmbs: commercial real estate mortgage loan contract."

"These two contracts, as the basis of the MBS project, we can combine them into an asset pool according to the credit risk assessment level of each loan contract, and then based on the cash flow generated by the asset pool, issue a MBS securities with low risk and stable returns.”

"The cash flow generated by ordinary residential housing loans, including principal and interest repayments, early loan repayments, etc., will be distributed to investors who purchased MBS products in proportion after deducting relevant fees by the service agency responsible for collecting cash flow every month. them."

"So for every home buyer involved in our project, their regular monthly payments are the basis for repaying the principal and interest of MBS. It is also the most important basis for MBS to be issued and rated AAA."

"After all, what fool would not pay back the mortgage? Would he even lose his credit record and house because of the small monthly mortgage payment?"

"To sum up, we believe that now is the best time to promote the rapid and comprehensive development of the MBS market. Other commercial institutions will follow our development pace and slowly participate in the entire MBS distribution market. big!"

When Panaris said this, he paused and Elder looked at the document in his hand and continued.

"Based on discussions at our meeting this afternoon, as well as the latest surveys of three credit rating companies: Standard & Poor's, Purpose, and Fitch."

"They have already set their sights on business industries related to MBS."

"The entire MBS project we are currently holding is the key to enabling the entire banking industry to get rid of the shackles of precipitated funds that cannot continue to circulate, open new markets, and seek new development."

"For Danas Credit Ratings, a company owned by our family, it is also the best opportunity and the biggest challenge to catch up with the three major credit rating agencies."

"As long as our Danas Credit Rating Company can ride on the new wave of MBS to rise rapidly and become the fourth largest credit rating company in the United States, compared with what it represents, we can make money from the MBS project. How much money it costs no longer seems so important!”

"Because of the Danas credit rating, if we can get out of Wall Street, out of Manhattan, out of the United States, and go international, it will bring us not only fame and profits, but also bring us a reputation in the international financial industry. , greater influence and voice.”

"We believe that it will not take too long for Danas to complete its rise. We estimate that it will only take ten years at most!"

"We can definitely rely on Stanley, Danaus, and Morgan Bank in the future to integrate them into a trinity and use it to redefine our own meaning as a financial industry giant on Wall Street."

After Elder finished speaking, he put down the document in his hand and started looking through another pile of documents at hand, preparing to respond to the inquiries from Old Morgan and others.

Boston.

Morgan family manor, in old Morgan's study on the second floor.

Old Morgan was sitting behind the desk holding a pen, looking at his records in front of him, thinking about the introductions made by Panaris and Elder just now, and writing and drawing on the paper. .

On the other side of the desk, Giles' uncle, Seamus Norton, and two gray-haired, well-dressed old men were also writing something in the small notebooks in front of them.

Two minutes later, Old Morgan let out a long breath, rubbed his temples vigorously with his right hand, and asked.

"Have you contacted Freddie Mac and Fannie Mae? What do they say about the MBS we are going to issue?"

"Already contacted!"

"Fannie Mae and Freddie Mac are very interested in and support our MBS issuance plan, but in terms of credit rating, they still want us to cooperate with the three major credit rating companies."

"Well, then when I go to New York in a few days, you can arrange for me to meet with their president to talk about this matter."

"In terms of law, you have to go over it again. In the MBS distribution contract, you have to be careful so that every letter cannot be missed or wrong!"

"Okay daddy, we will!"

"Also, I heard that some suspicious characters have been quietly contacting Lewis Ranieri and his project team members recently? Is this true?"

"Forehead.."

Panaris and Elder looked at each other, and Elder loosened his tie with his hand and nodded in response.

"Yes, our bank's internal supervision department has discovered some suspicious individuals and is contacting Lewis and his project team."

"Panaris has ordered to launch surveillance on these people. We haven't found out who sent them behind these people yet, but..."

"Well, forget it!"

"Panaris, you don't need to investigate any more~ I don't even need to guess, I know who will pull this little trick!"

"In the MBS project, we can completely distribute project bonuses to the project team according to the profit ratio after the issuance."

"Elder, you need to explain this to Lewis and his project team members. What we want is not just to make some money!"

"Rmbs and cmbs are just primary financial derivatives of the MBS project."

"As for the consumer credit bills that Panaris just introduced, in my opinion, in the future, in the fields of credit and other fields, we can completely develop new MBS-like project products for issuance and sale."

"Both of you must take a long-term view, from the perspective of more MBS-derived benefits, and don't focus on the little income you can earn from issuing MBS now."

"After all, the housing loan contracts in the entire United States are limited, and the high-quality MBS we can issue are also limited. In the future, MBS will definitely be dismantled, analyzed, combined, integrated, packaged, and then re-rated by countless interested people. Reissued for sale.”

"So you must remember that in terms of MBS project rating, Danas will only produce MBS products issued by Stanley in the early stage. In the future and later stages of development, Danas must not touch anything related to MBS. Securities and bond products!”

Panaris felt a little confused about Old Morgan's decision: "Why dad? If Danas can..."

"Panaris! Have you forgotten where you are?"

"I...I'm on Wall Street!"

"That's right! You're on Wall Street!"

"So, you should never imagine that the moral bottom line of the people on this street is so noble!"

"Any moral bottom line, in the face of huge interests, it... means nothing!"

"This, especially on Wall Street, is more concrete and bloody."

"If you want Danas to develop into the fourth largest credit rating company on Wall Street according to Elder's plan, you have to keep it away from anything related to MBS in the future!"

"This decision, even if I am gone and you take over the family business, you must keep it in mind! Do you understand?"

"I...get it, Dad~!"

"Hey~ It seems you still didn't understand what I said!"

"It doesn't matter. When I go to New York in a few days, if you still can't figure it out, we can talk in person!"

"So... old guys, do you have any questions for Elder and others about this MBS project?"

Old Morgan sat back in his seat, stretched out his hand and gestured to Seamus and the three people sitting opposite him.

All three of them smiled and shook their heads.

Seamus glanced at the piece of paper on Old Morgan's desk and thought for a moment.

"Panaris, let me ask, this David...are you prepared to cooperate more deeply with him?"

"Yes uncle!"

"You also know that in the past two years, the income from capital investment of the Morgan Bank Trust Department has been continuously declining."

"It has reached the minimum return warning red line we have set, and we need to re-formulate new directions and plans for the investment of credit funds."

“So we are preparing to work with David on some investment projects and, in accordance with his development plan, invest in more industries and types of projects.”

"I see."

"Judging from the news from you and Giles, this boy David is very interesting. In a few days, when your father and I go to New York together, can you introduce me to this boy David?" "

"Haha~ No problem, uncle!"

"I believe David will definitely bring you some surprises~haha~!"

"Um... Panaris, how come you make me feel when you smile like that..."

"No~Uncle, I laughed just because I thought of some interesting things about David. It has nothing to do with you... Haha~"

Old Morgan was behind the desk, listening to Seamus and Panaris chatting about David, and looked at the other two old guys who didn't say much with a smile.

The two old guys also had a tacit understanding. They smiled and nodded to old Morgan, saying that they had nothing to ask.

"Okay~ let's do this for now~"

"If you don't have anything particularly urgent, just settle the fund company that David and I have settled on first!"

"When I go to New York, bring me the documents that need David's signature, and I'll go talk to him face to face!"

"Okay dad~I will do it!"

"Well, then... hang up!"

"Goodbye dad~goodbye uncles!"

"Goodbye~!"

In the study, silence returned as Old Morgan hung up the phone.

Seamus smiled and asked curiously: "Fund company? Are you and that boy David going to establish it together?"

"What? Are you interested too?"

"Of course ~ I'm very interested in what's going on between you and this David!"

"Should I follow you to see David then?"

"Haha~"

Old Morgan laughed heartily, and several thoughts went through his mind.

"Okay~"

"But when you see this David, you may be disappointed...haha~"

"Disappointed? Why?"

"Because... well... you'd better go see it yourself when the time comes..."

"You...why are you still doing the same thing?"

"Are you trying to choke people to death when you're halfway through talking?"

"Hahaha~I'm happy~!"

"Hey~! You old bastard!"

----

new York.

In a quiet bar in the Bronx.

Gang boss Shinny is waiting for his No. 2 visitor tonight, Ludy.

Ludy walked into the bar with Black Franky, signaled the bartender to give him a drink, then walked across to Xinni and sat down.

He looked at the wine glasses on the table in front of him, smiled and asked Xinni: "What? Do you have any other guests in front of me?"

Xinni curled his lips, took one of the cigarettes and handed it to Ludy, lit it for him and said, "It's Matthews!"

"Oh?" Lu Di exhaled a puff of smoke, and the smile on his face became even stronger.

"He came...for union matters?"

"That's right!"

Xinni looked at Ludy's smiling face, and he laughed too.

"Guess what this Matthews wants to use as a bargaining chip?"

"A bargaining chip...?"

"Informant?"

"fxxx! You really knew it a long time ago, right!"

"You bloody bastard!"

"Why did I know this news from that bastard Matthews' mouth?"

"What about you? Won't you inform me?"

Facing Xinni's complaint, Lu Di smiled and shook his head: "What? Don't you know you have an informant sent by the police?"

"Still... what hope do you really have for Matthews' so-called bargaining chip?"

"Are you kidding me man?"

"This joke is really not that funny!"

"you.."

Xinni leaned forward and stared at Ludy's smiling face.

"You've made a deal with them?"

"Half of the unions in New York are under the control of the Sidrich family."

"So, you came here to see my jokes?"

"Is this joke of mine funny?"

"Whoa, whoa~ man! Don't be so excited, okay?"

"Didn't I come now? Although it's a little later than Matthews, I'm still here, right?!"

"Indeed, we have reached some consensus on cooperation with Hardman."

"However, your problems are not involved at all."

"I came here to see you today to give you a warning!"

"Hardman cannot be trusted, and this Matthews is one of his men, so he cannot be trusted either."

"If they use the informant as a bargaining chip and want you to help them, I advise you to think of something else you want as a bargaining chip."

"others?"

"What do you mean...?" Xinni frowned and took a long drag on the cigarette.

"Hehe~"

"If you are not in a hurry, the news on TV and newspapers may be able to give you the answer in a few days."

"news?"

"Okay~ I wish you good luck, my friend~ I'm going back first!"

"I promised to play with the kids for a while tonight and then go to bed with them."

"You know, I haven't been with them for a long time..."

"fxxx! What do you mean by half-talking?"

"What news? What happened in two days?"

"Speak clearly before you leave!"

"Hahaha~"

"Patience! Have some patience, my friend!"

"Impatientness does not bring any benefits to people. It will only make you more unclear about what you want."

"Right? Cinnie!"

Ludy didn't wait for Xinni to ask any more questions, stood up quickly, and left the bar with Black Franky.

"Xinni, when you see the news, please contact me again!"

"Don't be impatient, man~!"

"fxxx!"

"Ludi, you bastard who gave birth to a baby without an asshole!"

"I.."

Xinni saw that Ludy had left the bar laughing.

He took a deep breath, stared at the wine glass in front of him, and began to think about what Ludy said just now.

Um. .

Ludy was right about one thing.

Those Hardman and Matthews, from his and Ludy's point of view, are not good things!

Can the police be trustworthy?

Can the two of them come up with the chips Xinni approves of?

Do not!

They have no credibility here in Xinni!

Compared with them, Xinni still believes in Ludy and old Malkin more.

After all, they were once comrades who stood on the same ground as Xinni. .

Xinni fiddled with the wine glass in front of him, thought for a while, stood up and walked to the bar, picked up the phone and made a call.

"Hey, do you know where Karu is now?"

"Ah."

"Okay, I found him and asked him to call me back at this number. I will wait for him here!"

"ok~!"

Put down the phone.

Xinni whispered in his mouth: "It should be... it's almost time, right?!"