America’s Road To Wealth

  Chapter 176 Showdown to Wall Street

Of course.

  Abel is in Los Angeles.

   It's not all day long, just thinking about singing with Annie.

   Or play red couch with Charlize.

  He's here, except for Dark Horse Comics and AMC.

   Besides opening a new real estate company.

   There are also serious things.

  Like the day of the 11th and the 25th.

  He negotiated a deal again.

   He bought a bank.

  The name of the bank is very big, called the Pacific Bank of Commerce.

   But in reality, the bank has only $165 million in assets.

  A total of 4 branches, about more than one billion US dollars in custody assets.

  According to the US FDIC, that is, the classification of the US Federal Deposit Insurance Corporation.

   Pacific Bank of Commerce is a small bank.

  FDIC divides banks into three grades: large, medium and small according to their asset size:

  Large banks are those with assets greater than US$250 billion.

  A medium-sized bank with assets between US$10 billion and US$250 billion.

   Small banks are defined as those with assets of less than US$10 billion.

  According to this standard, there are actually only three large banks in the United States.

  The three banks are Wells Fargo, Citigroup and Bank of America.

   Other well-known investment banks like Goldman Sachs are only medium-sized banks according to this standard.

  The banking industry in the United States is very developed. At its peak, there were more than 50,000 banks in the United States.

  If you count those small credit institutions in the countryside.

   At its peak, it was estimated that there were more than 100,000.

  Even now in 2000, according to FDIC data, there are currently 9,613 banks in the United States.

  Among the number of 9613, it is obvious that there are more small regional banks like Pacific Bank of Commerce.

  It is a small bank with only a few branches, limited to a few places in a certain area of ​​the United States.

  Such small banks have thin capital, high capital costs, concentrated customer base, and poor risk tolerance.

  A study published by the Society of State Bank Supervisors (CSBS) shows that:

  【In the United States, more than 2% of small banks fail or are on the verge of failure every year】

   "Happy cooperation~"

   After shaking hands with Richard, the chairman of the Pacific Commercial Bank who came over from Northern California on a special trip.

  Abel said with a smile.

  The latter showed a wry smile, so he had to smile too: "It's a pleasant cooperation, thank you for your help."

  The Pacific Bank of Commerce is headquartered in Northern California, which is the San Francisco Bay Area.

  Its headquarters happens to be in Palo Alto, one of the centers of Silicon Valley.

  Abel has been there many times.

   But this small bank is not doing well and has been losing money for many years.

  In parallel time and space, it will also be acquired in three years.

  This time Abel made an early move and bought the bank directly.

   On the contrary, Richard, the chairman, and his family can breathe a sigh of relief.

   After watching Richard leave, Abel immediately said to Alan Baker next to him:

   "Let's start the negotiation. Our goal is to expand the number of branches to more than 50 in the shortest possible time. According to the plan, the next ones are Desert Bank, Lianhua Bank, and major banks."

   "Understood! BOSS! We will execute it immediately!" Alan Baker said quickly with a respectful expression.

   For the next period of time, Abel's special advisory group represented him throughout Los Angeles and the West Coast of the United States.

   Started a frantic acquisition of small banks.

  In just half a month, it has successively won more than a dozen small banks, including major banks, Lianhua Bank, and Desert Bank.

   Among them, the main bank (the name is called the main bank) has only one head office, with assets of 108 million US dollars.

   Lianhua Bank, which has four branches, has total assets of 235 million US dollars.

  The main business of the bank is in the Chinese community in Los Angeles, which can be regarded as a disguised increase in the proportion of Abel's bank in the Chinese community.

  Desert Bank has nine branches and its assets are as high as 532 million US dollars.

  Desert Bank is also the bank with the highest price and the most assets in Abel's series of mergers and acquisitions.

   Wait until December 5th.

  The New York Observer, a bi-weekly magazine headquartered in New York, published such a news item.

  This news report is about the business operation of its boss, Abel Smith, for more than ten days.

  The headline of the report is—

  "Fifteen banks in ten days, will a new banking giant emerge? "

  【As we all know, Mr. Abel Smith, the chairman of this newspaper, is the top rich man on the Forbes rich list! 】

  【But now Forbes needs to update the ranking of Mr. Abel Smith in other lists! 】

  【According to the author's calculations, Mr. Abel Smith has now become the 16th largest banking giant in the United States. 】

  【Because he acquired and acquired 15 commercial banks in a row in just ten days! 】

  【It is now under the name of the beloved chairman of this newspaper. There was already a bank called Pacific Bank of Commerce. 】

  【This bank is located on the West Coast. It currently has 51 branches, total assets of more than 4 billion U.S. dollars, and custodian assets of 27 billion U.S. dollars. It can be ranked 16th in the list of banks in the United States! 】

  【It is reported that it owns Smith Capital, a fund with an annualized rate of return exceeding 289.3%. 】

  【The latest two phases of private equity funds will be underwritten by Pacific Commercial Bank】

  【This newspaper has reason to believe that under the leadership of Abel Smith. The young Pacific Bank of Commerce will become another new giant of the United States! 】

  【At the same time, this newspaper is deeply skeptical of Forbes' claim that Mr. Abel Smith ranks among the richest people in the United States. 】

  【With the financial resources shown by the beloved chairman of this newspaper, Forbes obviously did not do enough to collect the information】

  【This makes us doubt Forbes, is the authority of its other rankings the same? 】

  【The author of this newspaper.】

  This report positively reported Abel's crazy acquisition of closed small banks on the west coast.

   At the same time secretly.

  By the way, it also took a little bit of "Forbes" magazine, which is a bi-weekly magazine like the "New York Observer".

  This report caused a thousand waves with one stone.

   It even caused great repercussions in the banking and financial industries across the United States.

  The Wall Street Journal, a good thing, soon interviewed some banking giants and management in New York and the United States.

  For example, Mr. Richard Fuld, the president of Lehman Brothers Bank.

   When being interviewed, he said in front of the media like this:

   "Mr. Abel Smith is indeed an excellent investment genius. But this does not mean that he is also good at managing banks."

  “The management and development of banks are different from pure investment.”

   "I personally hold a conservative wait-and-see attitude towards Mr. Abel Smith's entry into the banking industry!"

   Except Richard Fuld.

   "The Wall Street Journal" also immediately interviewed Mr. Paulson, the president of Goldman Sachs.

   Paulson’s words are much more peaceful, he smiles in front of the camera:

   “Goldman Sachs is willing to cooperate with Pacific Commercial Bank. Just as Goldman Sachs is willing to continue to cooperate with Mr. Abel Smith.”

  "We are willing to work with other bank colleagues to build a better American banking order. Let everyone have more peace of mind when depositing in the bank."

   "Let everyone's financial management and investment obtain stable and stable returns!"

  If there are good things.

   At this time, I went to investigate Paulson's remarks and tone of voice in the media from last year to this year.

   They will be surprised.

  This bald bank executive, what he said in front of the media has become more and more stable and official.

   Wait another year.

  Everyone will know why there was such a change when Paulson was interviewed at this time.

  Because next year, he will be your finance minister!

   Obviously, before that he had been in contact with the person who was going to live in the White House.

   Otherwise, during an interview with The Wall Street Journal today.

   would not say such very official words.

  In each series of interview reports.

   About this thing.

  The presidents of the big investment banks on Wall Street are mostly concerned about the emergence and rise of the Pacific Commercial Bank.

   Hold a "reserved cautious attitude".

   As for those large banks, like Wells Fargo, Citigroup and the like.

  They basically didn't express their opinions.

   It's just that in private, Abel's cell phone rings much more frequently.

  Like December 6th.

  Beverly Hills, address 1414 SeabrightPl.

  The edge of the outdoor sky pool on the terrace overlooking the night view of Los Angeles.

  Abel was lying on Jessica Alba's soft and white lap.

   In heated pool water.

  He was on the phone with Morgan Stanley CEO, Philip Purcell.

   "~Ha, Philip, I mean it."

   "I have already discussed this VAM agreement with the Texas consortium and Warren."

   "That's right, they, like you, don't agree with my offer."

   "Like you, they all think that my offer is too high. Although they don't say it, I think they must be saying that I am arrogant."

   "But I'm going to tell you, Philip. As I said to them."

   "That's in my heart, I think this offer is really not high!"

   "Ha~ I'm not kidding, I'm serious."

   "Philip, think about it. I'm still in Los Angeles, so I'll just say this first!"

  Abel, hang up the phone first.

  After hanging up the phone, he had a bad expression on his face.

   This made Jessica Alba a little worried.

  The big beauty full of mixed-race style stretched out a pair of catkins and gently massaged his forehead.

   "Hey Jessica, it's only been two days. You've done a great job!"

  Abel, who is in a bad mood, enjoys the beauty's charm.

  He smiled and said to Jessica Alba.

   Jessica Alba had a bright smile on her face.

  She has just finished her special training, and will start filming the latest version of "007" next year.

   Jessica Alba Next, take a break.

   At least half a month, she can stop working.

  She will be back from Seattle soon.

  Compared to being too smart, Anne was a little less smart when choosing.

  Jessica who is about the same age as Annie.

  But from beginning to end, she knew what she was looking for.

   Also from beginning to end, knowing who can better bring all this to herself.

  Compared to Anne, Abel has to use some means, let Jinna operate and guide.

   Let Abel worry.

   Jessica Alba really made Abel feel at ease.

   In front of Abel's eyes, Jessica Alba is very obedient.

   And as his status and wealth climbed, he became more and more obedient.

  When she was in New York before, Jessica still had a little intention of pursuing free love.

   Now, after becoming the heroine of "007".

   Jessica became obedient to Abel.

  Even the scandals that Abel was exposed in the media.

   Jessica Alba has an attitude of not even asking.

   It seems to be saying, as long as you keep feeding me, feed me well.

   Then I don't care how many fish are in your pond!

   is a smart and sensible girl.

   And this time she came back, in this villa.

   In a spa.

  Abel sometimes praised the spa master for his performance.

  She directly proposed on the spot that she wanted to learn the other party's massage techniques.

   Then I really learned, and at a little extra cost, the masseuse taught her some massage techniques.

   Then she applied this relaxing massage technique to Abel.

  Maybe not as good as the professional SPA, but she is more beautiful.

  You can also wear a bikini, let Abel who is being massaged enjoy it while reaching up..

  In contrast, of course, Jessica's service of seeing, touching, smelling, and listening makes him more satisfied!

   "As long as you like it." Jessica Alba smiled sweetly, bending her waist slightly, making it easier for him to play with..

  Abel holds the phone in one hand and

  He soaked most of his body in the heated pool water that was as warm as December.

  Accept Jessica Alba's flattery.

  He closed his eyes slightly, thinking about the next plan.

   This aggressive plan to enter the banking industry went well in terms of acquisitions and mergers.

   There are more than nine thousand banks in the United States.

   It is not difficult to acquire dozens of companies.

   Of the more than 9,000 American banks, it is estimated that at least 9,000 are small-scale Pacific Commercial Banks.

  The total assets of these banks are only 100 to 200 million US dollars.

  Even if it is a premium acquisition, it is not too expensive.

   What's more, most small banks are struggling to operate in the current environment.

  In many cases, you can win them directly without paying a premium.

  Like this time, less than half a month.

  Abel bought fifteen such small banks on the west coast.

  The total cost is about 4.5 billion U.S. dollars, and the total premium is less than 500 million U.S. dollars.

  Now he has integrated these banks, as well as their branches and businesses, into Pacific Commercial Bank.

  This makes the current Pacific Commercial Bank a "large" small bank with total assets of 4 billion U.S. dollars and custody funds of 27 billion U.S. dollars.

   That's right, if it follows the FDIC standard.

  The self-owned assets are no more than 10 billion US dollars, which is a small bank.

   The reason why Abel did this was that he was in such a hurry to get into the banking industry.

  Because half a month ago, after the Smith Capital investment reception at the end of the year.

  He has a showdown with investment banks and Wall Street.

   After that, he also stabbed many Wall Street companies in the back by the way.

   This is already a feud.

  Even if the hatred is not very big, he still has to be cautious.

   Plus he felt the timing was right.

   Wall Street can no longer be allowed to monitor its own capital flow at will.

   So right now, he has only two options.

  One is to own a bank, preferably a medium or large bank.

  This is relatively difficult.

  Because medium and large banks, if the timing is not good, the price of forced acquisition is too high.

  Another way is to invest heavily in these medium and large banks.

  After becoming their shareholders, they should be able to obtain certain confidentiality and protection in terms of capital flow.

   But it's not safe, because Wall Street is also prone to complicity.

   There are profitable situations.

   Get rid of major shareholders and small shareholders, as long as they are not relatively controlling shareholders.

   That's not uncommon for a bank or Wall Street.

  Abel decided to take a two-pronged approach and proceed directly in two steps.

  One is to acquire a small bank first, and then expand the scale through acquisitions and mergers.

  Although this is not as fast and direct as the acquisition of medium and large banks, there is also the possibility of business failure and development failure.

   But it is more economical, and you can also control your own fund transfer station.

  The other one is to continue to invest in those big banks.

  Take both steps, so you should be able to better ensure the safety of your capital flow.

   At present, he has only completed one step.

  Acquire Pacific Bank of Commerce and expand this small bank on the West Coast.

   is the first step.

   It's just that if he does this, it will inevitably cause dissatisfaction on Wall Street.

   Because obviously, after he got his own bank.

   A lot of money from Smith Capital.

   It will definitely be put on the Pacific Bank of Commerce.

  Although this does not prevent him from continuing to cooperate with other investment banks.

   But his approach will obviously reduce the profits other banks earn from him.

   Of course they were dissatisfied.

   This is why these days.

  The reason why his mobile phones other than No. 1 are almost blown up.

   Those Wall Street giants, they called for two main purposes.

  One is to continue working with Smith Capital.

  An investment company like Smith Capital, which is short-term and fast, with such a large trading volume.

   has always been their favorite.

  Another purpose is to inquire about the possibility of investing in Smith Capital or Pacific Commercial Bank.

  Like just now, this call from Philip Purcell from Morgan Stanley.

   That's what I asked.

   But when it comes to discussing the price, these guys are too expensive.

  With a valuation of US$500 billion, there is only one building with fixed assets.

  The valuation of Smith Capital made them unacceptable.

   Even though the VAM agreement is very attractive, these interests-oriented guys are still dissatisfied.

   In the face of these guys' lack of busyness, even cryptic warnings.

   Abel was unmoved.

  He is no longer the freshman who entered Wall Street last year.

  At that time, he was clean and clean on Wall Street.

  He has nothing but talent and a family cow.

  At that time, he had to be cautious, be polite to everyone, and act like a social fear.

  At the same time, in terms of cooperation and interest, they are very generous and carefree.

   That was him last year.

  Now he already has a place on Wall Street.

  Smith Capital Investment Reception.

  289.3%, possibly even higher annualized returns.

   It has also passed through the wealthy circles of New York and spread throughout the United States.

  Smith Capital Phase II and Phase III funds that have not yet been formally established.

  In a few days, more than two or three hundred people came to inquire.

  The funds expressed to be subscribed have far exceeded.

   More importantly, he can already guarantee himself on the physical level.

  Will not be destroyed directly by arbitrariness, this is what he is most concerned about.

   With the Texans taking over next year, his protection in this regard will be stronger.

  In this case, Abel is no longer willing to pay a large amount of protection fees to Wall Street.

   Time to show your teeth on Wall Street.

   Let them know, Dixie dudes from Texas.

   Already intending to sit on an equal footing with them.

  (end of this chapter)