Chapter 256: Chen Mo's Conditions

"First, I will not use all of the capital for the market rescue. Five hundred million dollars is the upper limit of the capital I can allocate to the rescue, and which stocks I buy is my freedom; you may not interfere."

"No, five hundred million dollars is too little," Dan nie er shook his head.

"Five hundred million dollars is enough," Chen Mo said confidently, "You should be clear that the most important thing in a market rescue is to eliminate the panic sentiment in the market."

As long as the Federal Reserve, the major investment banks, and you brokers are willing to issue a rescue announcement, the panic will be largely dispelled. Then my five hundred million dollars will be merely a catalyst, enough to restore market confidence.

"Fine, you have convinced me," Dan nie er nodded helplessly.

If the five hundred million dollars enters the market after the rescue announcement is issued, it is sufficient to spark a fire of hope.

If the Federal Reserve does not issue an announcement, even if Chen Mo invests the full two billion dollars into the market, it would be merely a drop in the bucket.

Chen Mo then proceeded to state his second condition.

"Second, I want Merrill Lynch to settle my funds within two days after the market recovers, and your Merrill Lynch must not freeze my capital due to tax withholding."

That is Chen Mo's true purpose.

Just now it was smoking again, then a sigh—just an act.

The current market rescue is nothing more than bottom‑buying.

Chen Mo already had this plan; even if Dan nie er didn't come, Chen Mo would still carry it out.

But Dan nie er's arrival makes it a different matter.

How can one not take advantage of the opportunity to gain some benefit?

Chen Mo's profit this time is enormous; counting the out‑of‑the‑money put options he hasn't sold yet, and after deducting the principal of 340 million dollars, the net profit still approaches two billion dollars.

According to the tax law just enacted in Meiliguo this year, earnings from the financial market are subject to a federal capital gains tax, a New York State income tax, and a New York City income tax.

The capital gains tax alone is 28%; the three taxes together amount to nearly forty percent of the profit.

By regulation, Merrill Lynch may directly freeze eight hundred million dollars in the form of tax withholding.

Even if Chen Mo had already arranged tax avoidance measures, the refund can only be received at the year‑end settlement.

That would be a big hassle!

Upon hearing Chen Mo's second condition, Dan nie er refused outright.

"I cannot do that; taxes are unavoidable for anyone. Merrill Lynch will never engage in any illegal activity,"

"Actually... it's not illegal."

Chen Mo waved over Jimi.

Jimi took a stack of documents from his briefcase and handed them to Dan nie er.

"I am not a tax resident of Meiliguo but a resident of Gangdao; here are my identification documents, my Gangdao housing certificate, and my travel proof to Meiliguo."

Additionally, my company is registered in the Cayman Islands, and all my investment capital comes from an offshore company.

According to Meiliguo's tax law, I need not pay the federal capital gains tax; I only have to pay the state and city income taxes.

Because Chen Mo's earnings are generated in New York, those two taxes must be paid regardless.

However, due to his status as a Gangdao resident and the offshore company, the tax rate can be reduced somewhat.

"Moreover, I have already engaged a professional tax lawyer and a top accountant who can settle my tax issues at any time. Tomorrow I can have them calculate the exact tax I owe, and you can simply withhold that portion."

Did you really think Chen Mo only brought Jimi to Meiliguo a half month early to find two traders? He has been doing a lot more in those two weeks!

After scanning the documents in his hand, Dan nie er realized Chen Mo had long prepared tax avoidance, and could only agree.

"Fine, I will have my company's finance team coordinate with your accountant, and when you settle the funds, we will directly withhold the tax you owe."

Chen Mo's mouth curved into a faint smile as he continued.

"My final condition is that Merrill Lynch must provide me with complete transaction records and proof of the legality of the funds, and also help transfer the capital to Gangdao."

Making money from Meiliguo is not that simple!

No matter how much you earn, you must be able to take it out!

For capital entering Meiliguo, the Meiliguo Treasury does not intervene—the more, the better.

But once the capital tries to leave Meiliguo, they will regulate it; the larger the sum, the more they intervene.

If there is even a hint of illegitimacy in the funds, you cannot take the money out.

If there is no problem, they will create one for you anyway; you still can't take the money out.

Transferring the money smoothly back to Gangdao is not that easy.

Although Chen Mo had Jimi make many preparations in advance, that little preparation pales in comparison to Merrill Lynch's capabilities.

Facing Chen Mo's repeated conditions, Dan nie er did not agree outright this time.

"The company can provide the transaction records and certificates you require, but I cannot guarantee that your funds will reach Gangdao smoothly.

The Treasury will control your account, and we have no way around it."

"No, you must have a way; it just depends on whether you are willing to do it."

Through Merrill Lynch's dealings with major banks, moving a few tens of billions of dollars to Gangdao, while a bit troublesome, is definitely achievable.

"Mr. Chen, you are only providing five hundred million dollars for the rescue, not two billion; your conditions are too many."

Dan nie er's point was blunt: he wants me to agree to you and put in more money!

These three conditions, five hundred million dollars, are not enough.

But Chen Mo is not prepared to put in more money.

He has already identified the bottom‑buy stocks; five hundred million dollars is sufficient, and any more would be wasteful.

After a moment of thought, a notion flashed in Chen Mo's mind, and he immediately said, "Dan nie er, I have already planned the use of my capital; only that five hundred million dollars can be used for the rescue."

"However, I can help you in another way."

"What method?" Dan nie er asked, frowning.

Chen Mo pondered briefly, ran through the sudden idea again, confirmed it was fine, and said,

"You can publicly announce my profit from this stock crash and arrange for a financial magazine or newspaper reporter to interview me."

As the biggest beneficiary of this stock crash, if I publicly express optimism about the stock market's future development, it would certainly help restore market order; this could also be considered a measure to rescue the market, right?

Chen Mo's words also put Dan nie er into deep thought.

As the biggest beneficiary of the stock crash, Chen Mo publicly endorsing the stock market—would that be useful?

Of course it would be useful.

But there might not be enough time!

Even if we find reporters right now, the interview could at best appear in tonight's evening paper; magazines would definitely be slower.

After wavering for a while, Dan nie er ultimately decided to agree with Chen Mo's approach.

Might as well treat a dead horse as a living one.

Who knows when the Federal Reserve meeting will end, who knows what rescue policies they'll come up with.

Although interviewing Chen Mo won't help today's situation, it will definitely be useful tomorrow.

"Mr. Chen, I'll contact reporters right away; I hope you can cooperate fully during the interview."

Chen Mo's face broke into a brilliant smile.

"Of course no problem, I know what to do. At the same time, I also trust Merrill Lynch's reputation; they won't go back on what they promised me, right?"