HPDBC Chapter 975 The Vision of a Chinese Businessman
Chapter 975 The Vision of a Chinese Businessman
After Soros and John Reed entered the conference room together, John Reed sat in the head seat, Soros sat to his left, and Adrian Wechsler, head of Citigroup's fund department, sat to his right.
The fact that these three people appeared together here inevitably sparked much speculation.
Although reporters were still unclear about the relationship between Soros and Citigroup, the fact that Soros appeared with John Reed and Citigroup executives at a press conference at Citigroup headquarters was enough to tell a lot.
The reporters in the audience were buzzing with discussion, debating all the possibilities.
"Everyone, please quiet down!" John Reed said upon seeing the situation.
The entire conference room fell silent instantly.
All the reporters' eyes were on the stage, and cameras, microphones, and still cameras were all pointed at the three people on the stage.
John Reed cleared his throat, glanced at the audience, and said calmly, "Dear friends from the media, thank you for coming to Citigroup headquarters today. I have gathered you all here today to announce something important."
He paused, glanced at Soros, and continued, "Citibank officially announced today the establishment of a wholly-owned subsidiary—Fusheng Securities Investment Fund Management Company."
The company had an initial capital of $200 million, with Mr. George Soros fully responsible for investment decisions and management operations.
The audience stirred again.
Two hundred million US dollars, entrusted to a bankrupt fund manager?
Has Citibank gone mad?
Although Soros's past record was indeed brilliant, that's all in the past.
Soros is now a loser with hundreds of millions of dollars in debt, a bankrupt credit history, and an inability to support himself.
What's the difference between Citigroup giving $200 million to someone who can bankrupt a company and throwing money into the ocean?
After all, the bankruptcy of the Quantum Fund, including funds from Middle Eastern and European consortia, is equivalent to indirectly squandering nearly a billion dollars.
This was an extremely rare and devastating defeat in the history of Wall Street.
Any rational financial institution would avoid such a fund manager at all costs.
Instead of backing down, Citibank extended an olive branch, which shocked the reporters present.
A Wall Street Journal reporter stood up and asked sharply, "Mr. Reed, why did Citigroup choose Mr. Soros? As we all know, Mr. Soros' Quantum Fund recently went bankrupt, and he still has more than $100 million in personal debt."
In this context, was it too risky for Citigroup to entrust him with the management of $200 million? Were Citigroup's shareholders aware of this? And what is Mr. Lin Haoran's stance on this matter as an executive director of Citigroup?
The moment the question was asked, the conference room fell silent.
Everyone knows that the feud between Lin Haoran and Soros is an open secret on Wall Street.
Soros initially spread rumors to try and drag Lin Haoran down with him, but Lin Haoran retaliated and bankrupted him.
Now that Citigroup wants to cooperate with Soros, would Lin Haoran agree?
After all, the conflict between the two parties seemed almost impossible to resolve to outsiders.
With Citigroup so openly and legitimately giving Soros such important responsibilities, isn't it afraid of upsetting Lin Haoran, the executive director and major shareholder?
John Reed smiled slightly and said unhurriedly, "My friend from the press, Citibank made this decision after careful consideration by the board of directors. Mr. Lin Haoran was not only aware of it, but also fully supported it."
In fact, it was Mr. Lin who recommended Mr. Soros to Citibank.
The audience erupted in uproar.
Soros joining Citigroup and directly taking the helm of a new fund company with an initial capital of $200 million is unbelievable in itself.
Now, they have learned that the person who recommended Soros to Citibank was none other than Lin Haoran, who was once schemed against by Soros.
The news was like a bombshell, causing an uproar in the conference hall.
Reporters frantically scribbled notes in their notebooks, their flashes going off incessantly.
The New York Times reporter stood up and pressed, "Mr. Reed, you said that Mr. Lin Haoran recommended Mr. Soros, which seems illogical."
As far as we know, it was Mr. Lin who caused the Quantum Fund to go bankrupt. How could he turn around and help Mr. Soros? Is there some hidden story behind this?
John Reed glanced at Soros, who nodded slightly, indicating that he could answer.
“There’s no hidden story,” John Reed said frankly. “Mr. Lin’s approach was simple: he admired Mr. Soros’s talent and believed that Wall Street should not bury a capable person.”
Regarding past grievances, Mr. Lin said, "In the business world, there are no permanent enemies, only permanent interests. Mr. Soros has already paid the price for his mistakes; now, it's time to give him a chance to start over."
The audience stirred again.
The reporters whispered among themselves, discussing the matter animatedly.
Lin Haoran's words showed a very broad perspective.
Most people would rather their opponent never recover than offer a helping hand.
A female reporter from the New York Post stood up and looked sharply at Soros: "Mr. Soros, Mr. Lin repaid evil with kindness. What do you have to say about this? Don't you feel ashamed?"
You spread rumors to try and drag him down, but now he's helping you out of trouble. How do you feel?
Soros remained silent for a moment.
He knew this problem was bound to come sooner or later, and he was mentally prepared before holding the press conference.
This is the answer everyone wants to know.
He took a deep breath and spoke slowly.
“My friend, you’ve asked a very good question.” His voice was calm and honest. “Yes, I am ashamed. I am ashamed of what I did back then, ashamed of having schemed against a respectable person like that.”
I lost, and I accept it wholeheartedly. But do you know what Mr. Lin did?
When I was at my lowest point, huddled in a cheap apartment in Queens, drinking five-dollar bottles of vodka and doubting whether I could ever turn my life around, it was Mr. Lin who recommended me to Citibank.
He insisted on giving me this opportunity. He said that Wall Street has no permanent enemies, only permanent interests. He said my talent should not be buried, and Citigroup should give me a chance to make a comeback.
He paused, then continued, "Mr. Lin repaid evil with kindness, and I have no way to repay him. From today onwards, I will use my performance to prove that he did not misjudge me. I will create enough profit for Citibank. This is the only thing I can do."
He stood up and bowed deeply to the reporters below the stage.
The meeting room erupted in enthusiastic applause.
It wasn't just polite applause, but heartfelt applause born from awe.
Some seasoned Wall Street journalists are used to backstabbing and kicking someone when they're down, but this is the first time they've seen someone like Lin Haoran repay evil with kindness.
This young man is no ordinary person.
Even though Lin Haoran wasn't present, his name became the main focus of the press conference.
The reporters were scribbling away in their notebooks, already brainstorming headlines for tomorrow's front page. Titles like "Lin Haoran's Broad-mindedness: From Enemy to Ally, the Vision of a Chinese Businessman" and "The Love and Hate of Wall Street: How Lin Haoran Conquered Soros with Tolerance" were already on their lips.
At this point, a reporter from The Washington Post raised his hand and asked, "Mr. Soros, I have a question. You currently owe more than $100 million in debt. What are your plans to do about this debt?"
Will you use funds from the new fund company to prepay your loan? Will your creditors pressure you to pay off your debts as soon as possible?
The reporter's question was very sharp, and his eyes showed obvious skepticism.
The atmosphere in the audience tensed up again, with everyone staring at Soros, waiting for his answer.
After all, if someone burdened with hundreds of millions of dollars in debt suddenly comes into control of two hundred million dollars, who can guarantee that he won't take risks?
Soros did not shy away from the question; he even smiled slightly.
There was no mockery in that smile, only a calm acceptance that comes from having experienced many hardships.
“My friend, I understand your concerns. It’s true that cases of misappropriating client funds have occurred on Wall Street, but that’s not something I, George Soros, would do.” His voice wasn’t loud, but every word was firm and resolute.
“I will repay my personal debts with my own money. The $200 million Citibank gave me is the company’s initial capital, and I will not touch a single penny of it. This is a matter of principle and is not open to discussion. Every flow of funds in the company will be reviewed by Citibank’s risk control department. Even if I wanted to misappropriate it, I couldn’t. Citibank’s risk control system is not just for show.”
He paused, then continued, "Moreover, I have already reached an agreement with the creditors through the court, and I will use 80% of my monthly income to repay the debt until it is paid off."
As you all probably know, I used to earn only $20,000 to $30,000 a month as an advisor to a few small hedge funds.
Twenty or thirty thousand dollars a month may seem like a lot, but for someone like me who owes more than 130 million dollars, it's a debt I could never pay off in my lifetime.
Now that I have a bigger platform, it means I have a greater ability to repay my debts. My creditors are overjoyed, so why would they hinder my comeback? They are my creditors, not my enemies. They want my money, not my life.
The creditors aren't fools. They've done the math. Rather than forcing me to my death and making me unable to repay the money forever, it's better to give me time and opportunities to repay slowly. So, they not only didn't hinder me, but they supported me instead.
"Because only if I succeed can they get their money back."
A low murmur arose from the audience.
The reporters nodded in agreement; Soros's words were truthful, logically sound, and irrefutable.
A reporter from The Washington Post then asked, "Mr. Soros, is the repayment agreement you mentioned legally binding? If Fusheng Fund's performance falls short of expectations and you are unable to repay the money, will the creditors sue you again?"
Soros smiled slightly and said, "The repayment agreement has been confirmed by the court and has legal effect. If I cannot repay the money, the creditors can, of course, sue me again. That is their right."
But I believe I won't let that day come. I have confidence in Fusheng Fund's performance; I have confidence in Citibank's risk control system; and I have even more confidence in Mr. Lin's judgment.
He emphasized the words "Mr. Lin's judgment," as if to send a signal to everyone that Lin Haoran would not misjudge people.
John Reed then took the microphone and interjected with a smile: "Dear friends from the media, please believe that Citibank's support for Mr. Soros is based on recognition of his abilities and confidence in Citibank's risk control system."
Fusheng Securities Investment Fund Management Co., Ltd. is a wholly-owned subsidiary of Citibank. Its risk control team is dispatched by Citibank, and all transactions need to be reviewed by Citibank's risk control department.
If the fund incurs losses for two consecutive quarters, it will be immediately liquidated. We have a robust risk control system and will not relax our standards for any personal reasons. Investors can rest assured.
The press conference lasted for nearly an hour and ended with a summary by John Reed.
"Dear media friends, this press conference is now concluded. Thank you for attending. For any further questions, please contact Citibank's public relations department."
The reporters dispersed, still buzzing with excitement, discussing the day's explosive news in small groups.
"Lin Haoran repaid evil with kindness, and Soros was extremely grateful. This story is too dramatic."
"This will definitely be the headline tomorrow. The Wall Street Journal will definitely put it on the front page, and it might even make it into Time magazine."
"Citigroup made a brilliant move. Regardless of whether Soros can make money or not, the news coverage alone is worth it."
Do you think Soros can make a comeback?
"Who knows? But with Citibank backing him, at least he won't go all in like last time. And have you noticed that Soros is much more cautious in his speech today? It seems that the bankruptcy has really taught him a lesson."
"That's natural. Anyone would change after falling from heaven to hell and then being pulled back to earth."
"However, I do admire Lin Haoran. It's easier said than done. If I were stabbed in the back, I definitely wouldn't help that person."
"So you're not Lin Haoran. He's able to make so much money not only because of his vision, but also because of his magnanimity."
The reporters dispersed, their discussions escalating, and the conference hall gradually emptied.
Soros and John Reed were led by staff to the adjacent lounge.
Closing the door shuts out the noise from outside.
Soros let out a long breath, took out a handkerchief from his pocket, and wiped the fine beads of sweat from his forehead.
Despite his calm and composed demeanor on stage, only he knows the pressure he's under.
The reporters in the audience asked questions as sharp as knives, especially those about Lin Haoran, which could easily spark even greater controversy if not handled carefully.
"How are you doing? Still holding on?" John Reed asked with a smile, handing him a glass of water.
Soros took the water glass, took a big gulp, and said, "It's better than I expected. I thought there would be more difficulties, but I didn't expect the reporters to be more interested in Mr. Lin than in me."
They cared far more about Mr. Lin's attitude than about whether I could make money.
John Reed laughed and said, "Of course, after all, your relationship with Mr. Lin was so strained before, but now you've suddenly put aside your differences, and Mr. Lin has even reached out to help you. This dramatic turn of events is certainly of interest to reporters."
Soros nodded and said with emotion, "In any case, the goal has been achieved. Barring any unforeseen circumstances, the news of my return to Wall Street will soon spread throughout the financial world."
Those investors who once avoided me like the plague, those who once asserted that I would never recover, will soon re-evaluate me.
What I need to do is respond to all the doubts with results.
John Reed patted him on the shoulder and said, “I’m relieved that you think that way. Mr. Lin is right. You’re a smart man, and a smart man doesn’t stumble over the same stone twice.”
"Do a good job, don't let him down, and don't let Citibank down either. I went to great lengths to convince the Citibank board to invest in you."
Soros nodded solemnly, then stood up and said, "Mr. Reed, I'll go back to work now. Today is just the beginning; the real test is yet to come. I certainly won't let you and Mr. Lin down!"
John Reed laughed and said, "Go ahead, I'll be waiting for your good news."
Meanwhile, as the reporters dispersed, news of Soros joining Citigroup to head a new fund company spread rapidly throughout Wall Street and even the entire United States.
Whether it's Citibank, Soros, or Lin Haoran, they are all relatively eye-catching names.
Citigroup is a behemoth on Wall Street, and its every move affects the nerves of the financial markets.
George Soros is a former financial tycoon whose legendary story of falling from the peak to the bottom and then making a comeback is fascinating in itself.
Lin Haoran, on the other hand, is a Chinese business prodigy who has risen to prominence on Wall Street, and every decision he makes is repeatedly studied and analyzed.
The combined effect of these three factors is explosive.
Merrill Lynch, President's Office.
William Allen Schreier sat in his spacious office chair, looking at the documents that had just been delivered to him, his brow furrowed.
"Mr. Soros was actually snatched away by Citibank? And it was Lin Haoran who suggested that he join Citibank?" he murmured, his mind still reeling.
In terms of assets, Merrill Lynch is naturally far inferior to Citigroup, the world's largest multinational commercial bank.
However, if we only consider investment banks on Wall Street, Merrill Lynch is undoubtedly the dominant player in Wall Street's retail brokerage business.
Such companies need top talent the most, and Soros is definitely one of those talents.
When Soros was bankrupt, he intended to recruit this top investment expert.
However, everyone on Wall Street knows that Soros is unruly and will not easily submit to any company.
In addition, given his personal debt problems, Merrill Lynch's internal risk control department also had reservations about the proposal, believing that a bankrupt fund manager would bring uncertain risks to the company.
After careful consideration, William Allen Schreier decided that it wouldn't be too late to make a move when Soros had suffered enough blows and could be completely subdued.
But who would have thought that Citigroup would intervene at this time and directly acquire Soros?
At this moment, there are several other Wall Street financial giants who share the same thoughts as William Allen Schryer.
Salomon Brothers, American Express, Chase Manhattan, Goldman Sachs, Morgan Stanley...
The leaders of these giants watched helplessly as Soros was brought under Citigroup's control; it would be a lie to say they didn't regret it.
When talented individuals are not being employed, people tend to believe that their value is limited and not worth the risk.
But once someone makes the first move, they feel like they've missed out, and a sense of resentment and regret arises in their hearts.
That's human nature, and it's no exception on Wall Street. (End of Chapter)