Chapter 212 Liao Family's Request for Help
Chapter 212 Liao Family's Request for Help
"Liao Baoshan actually went to sell flour and is now absconding with the money!"
"I heard that Liu Chongxing invested all his bank money in real estate. Real estate prices have fallen sharply recently, so he may have lost all his money."
"Liao Baoshan is a CS, and he wants to run away abroad with the money."
The news on the market was getting more and more bizarre, so bizarre that Yang Wendong felt that there was a high probability that someone was fanning the flames;
Not to mention other things, just selling flour is too ridiculous. Although this industry is highly profitable, how could the richest people get involved in such a thing, unless they made their fortune from this.
On June 6, Yang Wendong arrived at the headquarters of Liao Chong Hing Bank in Central in his own Mercedes-Benz bulletproof car.
At this moment, before it got close, the car was stopped by a huge crowd of people. It was not that someone stopped the car intentionally, but the front was full of people, all of whom came to withdraw money, and they blocked the two intersections.
Next to the crowd, there were a large number of police officers who were maintaining order. There were also a small number of traffic police who were directing traffic and signaling all cars to turn around and leave.
Inside the car:
Zheng Zhijie said: "Mr. Yang, our car needs to leave, otherwise, let's go down."
"Okay." Yang Wendong nodded.
Afterwards, a group of people got off the car and more than a dozen bodyguards surrounded Yang Wendong. The crowd here was a bit chaotic and the bodyguards were also very nervous.
However, their location was still some distance away from the crowded crowd and was not unsafe. The bodyguards also gave the boss space and scattered around.
"I saw in the newspaper yesterday that there was a bank run here." Wei Zetao was a little surprised and said with emotion: "I thought at most the bank lobby would be full of people, but I didn't expect that the road a hundred meters outside would also be full of people."
"Success and failure are both due to Xiao He." Yang Wendong shook his head and said, "The reason why Liao Chong Hing Bank was able to rise in the banking industry was by absorbing funds from ordinary citizens.
But now when a run occurs, that’s when the most people come. When so many people come and withdraw money, it will only make others panic, so they all come.”
This routine is a bit like the shared bicycles in the previous life, where an unknown amount of rental money was collected.
Originally, from the perspective of financial security, these rents could only be invested in low-risk businesses, but the shared bicycle companies used this money to expand and burn money, and eventually ruined themselves.
Zheng Zhijie said with a smile: "Old Wei, you don't have any money in there. If half of your family property is in Liao Chongxing, I'm afraid you would be more anxious than the previous person."
"Yes, I will definitely go crazy with anxiety." Wei Zetao thought from the other person's perspective and felt that he would be the same.
Fortunately, he followed some of his boss's investment strategies and transferred his money from Liao Chongxing, otherwise he would be finished now.
Zheng Zhijie added: "Liao Baoshan has not yet sought help from outside. He has been trying to guide bank customers to withdraw less money. He even asked many politicians and business people to sign compulsory agreements. It is said that this has had a certain effect."
"It's useless." Yang Wendong shook his head and said, "This kind of agreement is a ballast for people with a certain status, which can make them believe that there will be no problem with their funds.
But the problem is that the bank's customers are definitely not just rich people, but mainly ordinary people, especially the Liu Chong Hing Bank.
You said that the common people would not believe in your so-called agreement, they only believe in getting something in the pocket.”
Generally, when a company has problems, even if it owes a large amount of money to the bank, as long as it is not truly beyond recovery, there is still a chance of rescue. The creditor bank may even help you to a certain extent, because if you really go bankrupt, they will also suffer heavy losses.
But if there is a problem with the bank, it will face the most terrible bank run. These runs are all caused by ordinary people. There are so many of them that there is no room for negotiation. As long as they come to withdraw money, you have to give it to them. If you don't, it's all over. Once there is trouble, the government will not be able to bear it.
Therefore, under normal circumstances, the business operations of banks are strictly restricted by law. In many countries, commercial banks and investment banks are also separated and are not allowed to exist in the same company at the same time. However, there is obviously no such legal restriction in Hong Kong.
Wei Zetao nodded and said, "Yes, there is no way to stop these ordinary people from coming to withdraw money. We can only let them do what they want."
Zheng Zhijie continued, "It is said that 300 million in cash was withdrawn from the Hong Kong branch of Liao Chongxing Bank yesterday, and it is likely that more will be withdrawn today. According to this trend, if Liao Baoshan can't think of a solution, then the funds will soon run out."
"Yes." Yang Wendong said, "You will suffer the consequences if you do evil. When you used the bank's funds to buy real estate, you should have thought about this day."
Liao Baoshan must have known the dangers of his actions, but he was overconfident and blinded by the real estate returns, so he ended up going down the wrong path.
Zheng Zhijie asked: "Mr. Yang, are we waiting for Liao Chong Hing Bank to come to us?"
"Yeah." Yang Wendong nodded: "I think with the resources of the Liao family, we can still hold on for a few days, so we just have to wait.
In addition, please inform Qin Zhiye that we only need to briefly mention this matter in the Hong Kong Chinese Daily News and do not report it in detail, just to give face to the Liao family.
However, we should focus on reporting on financial risks and analyze the causes with professional financial experts. These are the contents that high-end people will like to read.”
"Okay." Zheng Zhijie agreed.
"Go back." Yang Wendong called another secretary and said, "Aying, arrange for a few people to take a few more photos around Liao Chongxing Bank in the next few days, and then store them in the company's historical files."
There is a special archive within the Changxing Group, which records the company's various historical deeds, achievements, milestones, etc. since its earliest days, and also contains many photos.
In addition to the Changxing Group itself, major events in the outside world will also be recorded, especially those that occur in Hong Kong. These will become records for the Changxing Group to look back on in the future.
Even when computers come out in the future, all data will be backed up electronically.
Secretary Aying agreed, "Okay, Mr. Yang."
February 6:
Liu Chong Hing Bank Building, Central, Hong Kong:
Liao Baoshan, who was once a glorious figure and vowed to become the descendant of the Ho Tung family and the number one Chinese in Hong Kong's business world, now had disheveled hair, was distracted, and stared blankly at a potted plant in front of him.
"Daddy?" A young man approached and called softly.
But Liao Baoshan didn't react at all, and no one knew what he was thinking.
Liao Liewen had to call out twice before he got a response: "Liewen, what's going on out there? I raised 3000 million in cash. Is the run on the bank better now?"
Liao Liewen looked at his father who had not slept for many days and was exhausted. He didn't want to tell him the truth, but he also knew that he couldn't hide it because Liao Baoshan was now the backbone of the entire Liao family. Then he said, "Dad, the branches have been running for money these days, and all the staff have been trying their best to persuade people to come and withdraw money, but to no avail.
Our staff are also trying to reduce the speed of cash withdrawals for users, but more and more people are coming, and the HK$2000 million we raised is almost gone. "
"Almost spent? This is 2000 million Hong Kong dollars?" Liao Baoshan looked incredulous.
In today's Hong Kong, 2000 million Hong Kong dollars is a huge sum of money, so huge that many people cannot imagine it. Even for him, he had to use a lot of favors and borrow from other banks and business friends to get the money together.
I thought it could last at least a week, but it was gone in less than three days.
Liao Liewen was also a little frightened and said, "I never thought that this situation would happen. In the past few days, almost 10,000 to 20,000 people came to the bank to withdraw money, some with a few hundred, and some with thousands or tens of thousands.
Although each amount is not much, the number is too much.
And just now, many of the company's big clients came to collect their debts. They must have known some inside information."
Not only the people of Liu Chong Hing Bank, but also outsiders, saw this kind of bank run for the first time. The scale of the run was so large that everyone was nervous.
Not to mention, the internal cash flow of Liao Chong Hing Bank is almost gone, and too many people in each branch know about it. The news can't be concealed at all. Not to mention some bigwigs in the political and business circles, even ordinary people will know it soon.
Liao Baoshan paused and said, "I have signed a guarantee agreement with them all, so it should be fine."
"It's useless, Dad." Liao Liewen shook his head and said, "Any agreement is useless at this time, and the most important thing now is that we really have no money.
If this continues, all branches will have to close down. If this happens, our Liu Chong Hing Bank will be finished."
No one has experienced such a thing, but everyone knows that if the bank cannot pay the money to the depositors, it will face an even bigger crowd of people running on the bank, and Liu Chong Hing Bank will be finished.
Liao Baoshan nodded, sighed deeply, and said, "Okay, I will call other friends now and raise funds from them urgently to solve the current problem first."
After saying that, he calmed down, picked up the phone beside him, and started dialing.
Just like that, an hour passed, and Liao Liewen's heart gradually fell into the abyss.
Because every call his father made just now was rejected.
"Bang~~" Liao Baoshan angrily threw the phone to the ground. His face turned ashen and he was still shaking. It was unknown whether it was because of anger or some other reason.
"Daddy!" Liao Liewen said in a low voice.
"They all watched me die without helping me." After a long while, Liao Baoshan finally came to her senses: "No one was willing to help me. They all wanted to watch me die."
“Daddy!” Seeing his father’s persistence, Liao Liewen had to say, “It’s normal for them not to help. If you put yourself in their shoes, would you help them?
Maybe you will help a little at the beginning, but when you are sure there is no hope, will you continue to help? "
"."Liao Baoshan had nothing to say.
Business is like a battlefield, either you die or I live; competitors may be friends, or more likely enemies.
When there are benefits involved, everyone wants to be well together, but once one person has a problem, the others will immediately run as far away as possible, and it is already considered good enough if they don't add insult to injury.
After a long while, Liao Baoshan asked, "So what do you think we should do now?"
"Our bank is not an ordinary company. Even if we file for bankruptcy, we still have to pay back the depositors' money. Otherwise, all of us may have to spend life in jail," Liao Liewen continued.
He hated his father very much. He had been stubborn and willful, had ignored his advice many times, and had used bank funds to speculate in the real estate market, leading to the current situation.
But blood is thicker than water, and now everyone is in the same boat. If the problem is not solved, then we are all doomed.
Liao Baoshan said: "The depositors' money is actually still there, but it has become real estate. They are in a hurry to withdraw the money in a few days, which is naturally impossible."
Liao Liewen nodded: "So the only way now is to urgently cash out the large amount of properties you have, exchange them for cash, and then give them to the depositors. Otherwise, if it is too late, there will be no chance, and the money will be useless in the future."
Liao Baoshan shook his head and said, “The problem is not about cashing out real estate properties, but even if cashing out real estate properties is useless, any bank has a large amount of lending business;
Now that so many depositors have withdrawn their money, even if I sell the property at a loss, the funds will still not be enough.”
"I know." Liao Liewen said, "While cashing out the property, I will also meet with other banks to see if they can buy out our loan business.
Or, I will contact loan customers to see if they can repay the loan early.”
"This is indeed the only way." Liao Baoshan was silent for a moment: "Liewen, even if you succeed by doing this, my Liao family's decades of hard work will probably be wasted."
Liao Liewen took a deep breath and said, "I know, but there is no other way."
"Okay." Liao Baoshan nodded and said, "I will go to the Hong Kong government to see if we can get them to come forward and guarantee us. If they do, the bank run will stop and maybe there will be a chance of a turnaround."
Liao Liewen frowned and said, "Let's give it a try, but given the Hong Kong government's long-standing free market policy, I don't think the possibility is high."
On June 6, Yang Wendong, who was playing with his son, suddenly received a call from Liao Liewen.
Then at noon, the two agreed to meet at a big hotel in Central.
"Mr. Yang, congratulations on becoming a father." Liao Liewen said with a smile.
Yang Wendong smiled and said, "Thank you very much. When the baby is 100 days old, there will be a small banquet. Mr. Liao, please come and join us."
"Okay, I just hope that by then, I can still happily attend the noble young master's banquet." Liao Liewen sighed, and then said directly: "Mr. Yang, you also know the situation of Liao Chongxing Bank."
"Of course, everyone knows what Hong Kong is like now." Yang Wendong nodded.
Liao Liewen added, "Mr. Yang, I asked you out this time because I want you to help me pay back the money that my bank loaned you before."
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(End of this chapter)