Chapter 72
Chapter 72
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Translator: MadScientist
Chapter: 72
Chapter Title: The Value of 1 Pound (3)
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Berlin Bank.
This was the company Yoo Ha-yeon had established before East and West Germany unified.
Originally a mere paper company, it had undergone several rounds of money laundering and acquisitions, then survived German reunification to be reborn as a proper bank.
Yoo Seon-jun, the nominal director of this Berlin Bank, chewed on his beef jerky thoughtfully.
'So... she's been planning this since way back in elementary school.'
Sure, she had graduated from elementary school now, and her appearance was that of a proper young lady, but things were different back then. She'd always been known as a genius, but even he hadn't realized she was this much of one.
At first, he'd thought the Alpha Fund had set it up to launder money brought into Eastern Europe, but it turned out to be the opposite.
From the very beginning... the whole point of the Alpha Fund bringing that massive sum into Europe had been Barings Bank.
"Ah, Director... so, this means the Alpha Fund's funds are being invested... right?"
An expensively hired, tight-lipped employee from East Germany tilted his head in confusion. Most of his salary was for keeping his mouth shut, so he wasn't all that familiar with the actual work despite the high pay.
But... surprisingly, it didn't matter. Yoo Ha-yeon had already laid out the detailed plan, and all they had to do was follow the orders coming down and move their pens accordingly.
Even the remaining variables could be handled by Yoo Seon-jun himself here and the M&A team from Daeha Investment Bank.
"That's right. Didn't I tell you? Most of the founding capital for our bank came from the Alpha Fund."
This was why Berlin Bank's security was so tight. The people had come from Daeha Group, but the money had come from the Alpha Fund.
Any normal person would sense something off about that. But everyone here was anything but normal.
"Ah, yes. Understood. What about the 1 billion dollars that came in last time... how should we handle that?"
The employee suggested concealing the funding source as casually as if it were routine.
"The funding source... hmm."
There was no real need to hide it completely. As long as it didn't look like the Alpha Fund was behind everything, it would be fine.
Besides, 1 billion dollars wasn't the kind of amount you could just hide away.
"Of the 1 billion dollars, attribute half to the Alpha Fund... and for the remaining 500 million, we'll split it up into smaller chunks from various sources. See that? Daeha Investment Bank, Swiss pension funds, Microsoft, Polish Energy Hub... We'll swap it around to make it look like it came from the companies and institutions listed in these documents."
Some were paper companies, others real ones. Routing the investment through a few hedge funds would cost a bit in fees, but it would definitely clean the money.
It wasn't all that important anyway. After all... Berlin Bank was a solid institution with decades of operational history on record.
The fact that it had been acquired by a shady company a few years ago and changed names, with nearly all its staff replaced around that time, wasn't a big deal.
Wasn't German reunification a massive event? In all that chaos, a bit of staff turnover... was entirely plausible.
The Bank of England, reeling from repeated knockout punches and too dazed to think straight, wouldn't bother properly investigating a Berlin bank.
◇◇◇◆◇◇◇ January 1992, City of London.
Bank of England Governor Robert Leigh-Pemberton suddenly found himself resenting the new year. He'd been governor for nine years, with just one left in his term, and now this had to happen.
It seemed God truly hated Britain (and honestly, He had good reason to).
"...Barings Bank was hiding a 400 million pound loss."
His secretary whispered from the side.
"Your Excellency, it's now 500 million pounds."
"...Right, 500 million pounds. It's grown by another 100 million in the meantime."
Leigh-Pemberton fixed the man before him with a cold stare. The top executive responsible for the Nick Leeson scandal... the head of Barings Bank.
"I-I'm sorry."
The Barings Bank president was trembling and sweating bullets. Barings might be a shadow of its former glory, but in Britain, it was a bank that bowed to no one...
His groveling posture made him look like a condemned criminal.
And in truth, he was.
"You want a bailout? At a time like this?"
"Please... if you could just provide bailout funds of around 300 million—300 million pounds—"
"300 million! Ha! When we're stretched thin just defending the pound... you want us to cough up 300 million pounds?"
Wrinkle lines creased the forehead of the sixty-something man.
He hadn't thrown the insolent fool out on the spot... because he couldn't exactly refuse a bailout.
The reason for defending the pound was partly the Bank of England's credibility, but honestly, it was Britain's pride.
Yet Barings Bank was part of Britain's pride too. He couldn't recklessly choose one over the other.
Sir..."
"...Hoo. Get out for now. Try requesting bailouts from other banks. If someone moves to acquire Barings before then... well, no helping it."
"Th-thank you!"
The bank president rubbed his hands obsequiously and backed away.
-Thud.
The door closed, and Leigh-Pemberton spoke to his secretary.
"Prepare a bailout for Barings Bank. We can't let it vaporize into thin air... and there isn't exactly a company ready to acquire it outright anyway."
If the bailout didn't come through in time... well, no choice.
Bankruptcy meant failing to repay debts, so if the bailout was delayed, Barings would either go bust or get acquired.
In truth, Barings Bank, saddled with hundreds of millions in debt, wouldn't normally qualify for a bailout. If it weren't once the world's top bank.
"Actually, sir... there is one bank interested in acquiring it."
The secretary hesitated before handing over a document.
"ING from the Netherlands? I've heard of them. They were still considering it, right?"
"No, not them... It's Berlin Bank from Germany."
Leigh-Pemberton stroked his chin.
"Berlin Bank...? That new German bank?"
"Yes, Berlin Bank has made an acquisition offer to Barings."
"Odd. They aren't that big, are they? Isn't this overreaching?"
The secretary nodded.
"Yes, other experts agree. However... they successfully restructured after acquiring several larger East German financial firms a few years ago."
"Hmm... in that case, it's understandable they'd misjudge. Getting acquired by them isn't so bad. It's like shifting Britain's debt to Germany. Barings is a shame to lose... but if things stabilize, Britain can always buy it back later."
He didn't think Berlin Bank could handle Barings. After all...
With a whopping 500 million pounds in debt.
"But what if... Berlin Bank actually has the money? There's quite a bit of talk about their past acquisitions. Signs point to some American hedge funds investing capital..."
"Hm, so it might not be a German firm but effectively American. Still... you know time isn't on our side."
The Bank of England governor was a reasonable man, so he didn't find Berlin Bank suspicious.
If Berlin Bank weren't independent but a paper house manipulated by someone... that would be a major national security issue for Britain. But that was unlikely.
Even considering the remote possibility...
They'd have to establish a West German entity before reunification, acquire a state-owned East German bank during privatization, then immediately prepare to take over Barings.
Absurd. No one capable of that would bother with Barings. They'd just run a massive U.S. hedge fund and start their own investment bank.
◇◇◇◆◇◇◇ "Si-hyeon, what did Soros say?"
I lay on my home bed for the first time in ages, closing my bloodshot eyes to rest.
It wasn't quite bedtime yet... but I'd been exhausted for so long. With the operation now on track, it was time to recover.
No better timing to rest.
"...He accepted the proposal. He contacted us saying he'll short after the Bank of England announces the bailout."
"Good. Scale?"
"12 billion dollars. Looks like he pulled all the money from Spain, then levered it up further. Somehow dodged losses in Sweden like a ghost too."
"Hahaha, gutsy guy..."
My languid voice echoed faintly. Si-hyeon placed a cool damp cloth on my forehead.
"Rest a bit, miss."
Her small frame shifted on the bed. The pent-up exhaustion crashed over me like a wave of sleep.
"Ugh... can't sleep yet. Right, how's Berlin Bank doing? They still need to finish laundering the funding sources, so more attention there..."
"Young Master Seon-jun went, he'll handle it."
"You don't know ING—they'll probably make an offer too. Need to boost credit ratings for them to accept. Netherlands has its own bombs planted, so ING's busy... but still."
"...When did you even do that."
"Hehe, moved the Alpha Fund for it."
The full-length mirror in the room reflected my excited face. The pure thrill of a child plotting mischief.
Ah... but more work to do.
Need to prep for MGM acquisition, plant people in Thailand ahead of the baht crash, MS Korea branch has backlog...
So many fun things in the world.
"But what if Barings doesn't accept the acquisition offer?"
"Hahaha, won't happen. This is more obligation than right."
The 1 billion dollars in debt Barings had racked up... was literally more than they could repay even selling everything. Without government intervention, they couldn't refuse this offer.
"An acquisition offer to a bankrupt firm... means we'll cover the debt. Paying more than the company's worth—why refuse?"
I glanced at the stack of documents on the desk.
Berlin Bank's acquisition proposal to Barings Bank...
In short summary of the complex paperwork:
-"We will acquire Barings Bank for 1 pound."
That was the value of 1 pound.