Chapter 330

Taurus Private Equity Fund was the company where Green worked. By the time Green arrived at the conference room, everyone else had already arrived.

Keton was the boss of Taurus Private Equity, a white and fat British guy.

"The Finnish markka has fallen by nearly 15%. In just over an hour, we have lost more than 20 million US dollars. Who can tell me what to do next?"

Someone said: "Close the position as soon as possible, stop the loss!"

Someone else said: "Increase holdings of the pound to hedge the losses brought by the Finnish markka."

"I agree!" Green's face had always been pale, because he used leverage, and in the just over an hour, he himself had lost more than 1 million US dollars."

Keton looked at the others: "What are your opinions?"

Others said: "None!"

"Then what are you waiting for?" Keton roared: "Delaying for a few minutes, hundreds of thousands of US dollars disappear again, why don't you hurry up and get back."

Everyone stood up and walked out. These fund managers each had their own clients, and the funds they controlled ranged from over 100 million to a few million.

This time, going long on the Finnish markka, their losses were not small, but the one who lost the most was still Green. He controlled funds of over 100 million, and was also stimulated by Seeing Jian Qiu. He didn't dare to use 200 times leverage, so he used leverage, but even so, the loss was huge. If he had used 200 times leverage, he should have jumped off the roof by now.

Suddenly Green stopped, his eyes turned blood red. Seeing Jian Qiu used 200 times leverage to short the Finnish markka. He lost more than 1 million in an hour. And Seeing Jian Qiu earned more than 3 million in an hour, and at this time, her wealth was still continuously growing.

"***, your luck is really good." Green cursed through gritted teeth and walked quickly toward the office.

After returning to the office, he began to force the closing of positions, but this process was also painful, because forcing the closing of positions meant that the losses would expand.

But there was no other way. If he continued, he would lose everything, and by then, those British guys would definitely chop him into pieces.

After forced closing of positions, Green immediately increased his holdings of the pound. And at this time, except for those big crocodiles on Huaerjie, no one knew that the pound, the strongest in the world, would face a crisis.

Green took out a cigarette from the drawer and lit it. Usually, he didn't smoke, but when he was nervous or thinking about things, he would choose to smoke one.

September 9, 1992, Wednesday, the Swedish krona fell crazily.

At this time, Italy's interest rate had reached 15%. Under normal circumstances, such a high interest rate was enough to keep capital in the country, so Italy didn't think the lira would be in danger.

Seeing Jian Qiu said: "200 times leverage, 2 million, short the Italian lira."

Alice had just finished the operation when news that the Italian lira was about to depreciate suddenly spread in the market, followed by a large amount of lira sell-offs.

At this time, Alice looked at Seeing Jian Qiu with a trace of fanatical worship. She began to suspect whether Seeing Jian Qiu was a goddess beside God who had secretly run to the human world.

September 11, 1992, Star... The Italian lira depreciated by 7%, still within the floating range limited by the European exchange rate system, but the situation looked very pessimistic.

At this time, the British and French governments had felt the seriousness of the problem and suggested to the German government to lower interest rates, but Germany refused the suggestion of the British and French governments and publicly announced that Germany would absolutely not lower interest rates.

September 12, 1992, Saturday, within the European Monetary System, the Italian lira, which had always been a soft currency, was in an emergency. The exchange rate fell all the way, falling to the maximum lower limit of the lira against the mark in the exchange rate mechanism of the European Monetary System.

September 13, 1992, Sunday, the Italian government announced the depreciation of the lira, lowering its parity by 3.5%. By this time, in order to maintain the operation of the European Monetary System, the German government made a slight concession and officially announced that the discount rate would be lowered by half a percentage point.

This move by Germany was highly praised by the US, UK, and France, but it was too late, and a bigger storm was blowing in the British foreign exchange market.

Just the day after Germany announced the interest rate cut, which was September 14, 1992, Monday.

As soon as the market opened, the British Central Bank invested 700 million US dollars to buy the pound. At the same time, Germany cut interest rates over the weekend, so a small intervention caused the pound to rise slightly, which made the British government breathe a sigh of relief.

But this small rise made those big crocodiles on Huaerjie think that the pound was already very weak, because the rise was too small.

The time was ripe, Seeing Jian Qiu suppressed the excitement in her heart: "Alice, 3 million, add positions to the German mark. Close all other positions, invest all funds to short the pound, 400 times leverage."

Hearing Seeing Jian Qiu invest all funds to short the pound, and wanting to use 400 times leverage, this was too crazy, making Alice's hand shake, and at this time she had to speak.

"Boss, are you sure you want 400 times leverage?"

Seeing Jian Qiu smiled: "Before, Andrew Krieger used 400 times leverage to move the New Zealand dollar and earned 300 million. Why can't we? And I believe that this time, the money we earn will be several times his."

Mentioning Andrew Krieger, Alice's spirit was lifted, because this was her super idol.

"Boss!" Alice clenched her fist and said excitedly: "We will definitely succeed."

September 15, 1992, Tuesday, as soon as the market opened in the morning, the pound took a big dive. British Chancellor of the Exchequer Lamont kept muttering, too terrible, too terrible.

That evening, Lamont convened financial officials and Bank of England Governor Pemberton for a meeting. Both sides agreed to actively intervene in the pound starting Wednesday morning. If it still didn't work, they would consider raising interest rates.

But just as the meeting was about to end, the office door was pushed open, and Pemberton's secretary broke in.

"Boss, just received news that the Governor of the German Central Bank held a press conference, believing that a broad adjustment of European currency exchange rates would be better than a separate adjustment of the lira."

"What?" Pemberton stood up abruptly, his face turning iron-blue instantly.

"Damn bastard!" Lamont was like an angry lion, wanting to eat the Governor of the German Central Bank. The last public statement had already led to the collapse of the lira, and now he was attacking the UK again, which was equivalent to forcing the pound to depreciate.

September 16, 1992, this day is known in history as Black Wednesday.

When London opened, the Quantum Fund shorted 10 billion US dollars of the pound, and the pound instantly fell below the lower limit of the ERM.

At 8:30, the Bank of England intervened twice, buying 300 million pounds each time, expecting to pull the pound back into the ERM fluctuation range, but it had no effect.

Ten minutes later, the Bank of England bought another 400 million pounds, but the pound still remained motionless.

At 9:00, Lamont told Prime Minister Albert that the intervention had failed, and the UK would have to raise interest rates to protect the pound. Albert refused to raise interest rates; the UK was already in recession, and raising interest rates was no different from drinking poison to quench thirst.

At 10:30, the London foreign exchange market was bleeding.

Taurus Private Equity Fund, a dead silence.

Green slumped in his chair, staring straight at the computer in front of him, but his eyes had no focus, like a corpse without a soul, motionless.