Chapter 1102 (1/2)
What do banks fear most?
It doesn't need too much professional knowledge, but ordinary people with a little experience can probably know the two words: run.
Any bank, once run, the result is disastrous.
Just one day on February 26, the investigation of the regulatory authorities and the withdrawal of Westinghouse Electric Co., Ltd. caused the panic caused by the superposition of two major negative factors, which quickly caused the customers to run on Mellon financial group.
As an established local bank with a history of more than 100 years, Mellon financial group had a market value of US $13.9 billion the day before the incident. However, by the end of the afternoon, under the impact of continuous negative news, the share price of Mellon financial group had plummeted by 21%, and the closing market value was only $10.9 billion. In one day, all shareholders of the bank had a Book loss of $3 billion.
The collapse of stock price is second. Everyone knows that the most serious problem is run.
If this problem can not be solved quickly, Mellon financial group, a century old local bank, may not be able to survive next week and will collapse, which will have more chain negative effects.
For the next two days, the event continued to ferment without any miracle.
The valuation of Mellon Financial Group continued to fall by 13% and 9% respectively in the next two trading days. By the end of Friday, the market value of Mellon financial group had plummeted to US $8.6 billion from US $13.9 billion three days ago. At the same time, for three consecutive days, the bank's customers' accumulated cash withdrawal and transfer applications amounted to US $6.7 billion, while the old local bank with assets of US $43 billion, according to the federal reserve ratio of about 8%, can take out less than US $3.5 billion in short term.
Therefore, the extraction can only be restricted.
This has led to further panic and runs.
Pittsburgh.
In a manor of the Mellon family.
It's Friday night.
Since Andrew Mellon's death, most members of the Mellon family, who have been gradually split, rarely get together again. The first thing they meet is a fierce quarrel. The two sides of the confrontation are Richard Mellon Scafe and his sister Cordelia Scafe may, who triggered all this today.
Their mother, Sarah Cordelia Mellon, is the granddaughter of Thomas Mellon, the founder of the Mellon family. Because of the inheritance dispute after their mother's death, the fourth generation of Mellon brothers and sisters, who are both over 60 years old, haven't spoken much for nearly 30 years.
”That's what I've been doing since I was a child. You arrogant and incompetent fool, you can't do anything except drink and play with women. When you live to 60, you can only do these stupid things that affect the family.”
”Bichi, at least I didn't implicate you! Or? You don't tell me that you have lost a lot of money by secretly following everyone to invest in short technology stocks, which can only say that you are more stupid. ”
”If I had known that you were the fool behind my back, I would not have invested a cent. Hey? I've lost some money. But look at you. You took so much back then. How much is left this time? Ha ha? I'll wait to see you go bankrupt, stupid
”I should take more. At least I've done something over the years. What about you, besides lying on your mother's legacy and enjoying your life? What have you done? You didn't do anything
”Did you do something? Build a media group? Then go to provoke the president? Dig out other people's privacy? Hey? What did you dig out? Clinton is still well in the White House, but this time, Mellon finance was suddenly investigated. Why do you think it is, stupid? Why do you say it is? ”
”Bichi? Shut up.”
”Fool!”
When their quarrel almost reached the level of physical conflict? Timothy Mellon pushed his father Paul Mellon in? Sitting in a wheelchair, the 90 year old man signaled his son to step forward, swung his cane and hit Richard Mellon Skye, and finally stopped the dispute.
Interrupted the quarrel between the two children? Paul Mellon glanced around all the children in the hall and signaled to his son again.
Timothy Mellon didn't talk nonsense either. He looked at the people standing or sitting around him: ”Frank cotter came back from Washington this afternoon. The authorities mean to ask the Bank of New York to take over Mellon finance, so let's talk about our own views?”
Frank cotter is the CEO of Mellon financial group. He has been a loyal spokesman of Mellon family since 1987.
As soon as timothy Mellon's voice dropped, one of his cousins, Matthew Mellon, said, ”it's so obvious that this is a conspiracy. I remember that bank of New York tried to buy Mellon finance last year.”
”Timothy, I just want to know what we can get when we promise to take over from the Bank of New York, or, frankly, what we have left,” said another Richard Prosser Mellon, who is on the same team as Richard Mellon skeiff
Timothy Mellon looked at his older cousin and shook his head. ”It's just Washington's request for Mellon finance. It's about us. After we make a decision tonight, we need to keep in touch with Washington.””If Washington doesn't promise, we can't promise anything,” said Cassandra Mellon, another middle-aged female member of the Mellon family
”CASS, the problem now is that we only have one night to make a decision. You know, the stock market is closed at the weekend, but the run is still there. We can't afford to delay it. ”
Cordelia, who had just ended her quarrel with her brother, interjected: ”let's not talk about anything. If Mellon finance collapses because of a run, we won't lose the most. I don't believe the White House dares to watch this happen?”
”It's really so simple,” said Matthew Mellon just now. ”If we don't take the initiative to cooperate, Mellon's financial situation will deteriorate to a certain extent, and the authorities have the power to forcibly take over, then we will completely lose the initiative.”
Cassandra Mellon added: ”we can't compromise without talking about it. I still insist that Washington give us a promise to make concessions.”