Chapter 277 Little Rabbit Obediently Moves His Hand

"$32.5 billion has been subscribed?"

120 Broadway, New York City. Four World Financial Center Tower, Manhattan.

Inside the 34-story Merrill Lynch headquarters.

CEO David Komansky heard the news Charlie brought back.

The CEO, who was almost ignored by the black president, couldn't believe it.

Charlie Scharf nodded and confirmed: "There is nothing wrong with the $32.5 billion. When David Mellon announced it, most of the executives of major Wall Street companies were present. He should not lie in front of so many people."

After hearing this, David Komansky still didn't quite believe it.

That’s US$50 billion, a single private equity fund of US$50 billion!

Now it has not even been announced to the outside world, it is just an internal subscription, is it already such an exaggeration?

David Komansky didn't quite believe it.

Charlie Scharf once again added another piece of information.

"Berkshire Hathaway subscribed for $5 billion. PNC Financial Services Group also subscribed for $5 billion. Citibank also subscribed for $2 billion, Fidelity also subscribed for $2 billion, and Wells Fargo also subscribed for $2 billion.

.”

"Just for these five companies, they have subscribed to US$16 billion in private placements and signed preliminary letters of intent."

"So I think these numbers should be true," Charlie Scharf said.

Hearing the names of these companies, David Komansky had to admit this.

The CEO of Merrill Lynch said:

"Charlie, you contact David Mellon right away and say that Merrill Lynch is willing to subscribe for five billion U.S. dollars."

"Understood." The soldiers were so quick that Charlie Schar directly dialed David Mellon's phone number at the scene.

The phone never got through and the line was always busy.

The beating lasted for almost ten minutes, and Charlie hit him several times.

Finally got through to David.

"Hello, David. I'm Charlie, Charlie Scharf."

"Yes. I would like to ask about Smith Capital's seventh private placement."

"What? Only twelve billion dollars left?"

Charlie Scharf said in surprise, while looking at David Komansky.

The CEO naturally understood that Charlie Scharf was referring to Smith Seventh Private Equity.

Only US$12 billion has been subscribed.

An hour ago, this number was 17.5 billion.

In one hour, US$5.5 billion is reduced.

David Komansky is also a decisive person.

Otherwise, when O'Neal was brought down, the black CEO would not have been brought to court immediately.

David Komansky immediately whispered:

"Subscribe, subscribe, subscribe. A billion dollars. No, tell him, Merrill Lynch wants $1.5 billion."

Charlie Schar held his phone, "Sir, are you sure it's 1.5 billion?"

"Absolutely," David Komanski said decisively.

Charlie Scharf then conveyed Merrill Lynch's subscription intention to David.

Then when it was three o'clock in the afternoon, only four hours had passed.

Charlie Scharf and David Komansky received the news.

That is the private equity fund recruited by Smith Capital this time.

Before it was officially announced to the outside world, it had already been divided up internally by Wall Street giants.

In other words, those previous investors.

Except for Wall Street and certain financial institutions.

Ordinary rich people like Barron Hilton and Ted Lerner.

Before they even had time to learn the news, before they even started, the subscription intention had already exceeded US$50 billion.

After hearing the news, both David Komansky and Charlie Schar felt a little relieved.

"It's so popular." David Komanski said helplessly:

"It seems that Wall Street's confidence in Abel Smith is very high."

Charlie Scharf nodded too.

But as a consultant, I also want to clarify my own relationships and responsibilities.

Charlie Scharf said softly:

"Mr. Komansky, is there a possibility that Smith Capital is deliberately creating the illusion that their private placement is popular?"

"Because you know. Berkshire Hathaway and PNC Group have both recognized Smith's offer and are both shareholders of Smith Capital."

"Wells Fargo and Citigroup have always been good partners of Smith Capital. There is only one Fidelity company that has no connection with Smith Capital. However, there are also rumors on Wall Street that retired former Fidelity Vice Chairman Peter Lynch admires Abel Smith very much."

"Do you think this possibility exists?"

In fact, David Komansky has also considered this issue that Charlie mentioned.

There is too much intrigue on Wall Street.

It is not impossible that Smith Capital deliberately created an illusion to attract investors' investment and create a situation in which supply exceeds demand.

But David Komansky thinks it's unlikely.

The reason is simple.

Smith Capital's first three private placements were in short supply.

The total funds raised from those three private placements totaled US$9 billion.

The first three times were a huge success and investors made huge profits.

Smith Capital’s seventh private placement doubles or more from $9 billion.

There's not much pressure.

In this way, at least half of the US$50 billion private placement can be achieved.

At this time, if any large institutions are interested in betting that Abe Smith can succeed as always.

That could easily lead to the current robbery situation.

Everyone was scrambling for it, and since it was just a subscription, the money had not yet been transferred.

There is still room for regret.

Then Smith Capital has a quota of 50 billion US dollars.

Without any announcement, the possibility of being sold out in half a day is very high.

This is just like the pre-orders for certain new mobile phone products on Internet e-commerce in later generations.

Without spending any money, or with a very small deposit, the number of people ordering will be far more than the number of people who actually buy the phone.

If something unexpected happens to Smith Capital, the subscription amount will be US$50 billion.

David Komansky feels that it is not that easy to accomplish.

But what the heck, David Komanski also decided to take advantage of the situation first.

Anyway, the formal contract signing and fund transfer can be observed later and transferred after making sure it is safe.

If you don't invest in the future, you will only lose some deposit, or at most several million US dollars.

In fact, most Wall Street institutions do this.

So don’t look at Smith Capital, this exaggerated astronomical single private placement was completed so quickly.

Can it really work out with Abe Smith.

It also depends on the subsequent arrival of funds and formal signing.

Meanwhile, a few miles away from Merrill Lynch headquarters.

The LIC area of ​​Queens is across the East River from Manhattan Island.

Smith Capital,

Smith Building.
To be continued...