Rebirth of the Industrial Tycoon

Chapter 657 Establishing Prestige

The greater the amount of investment, the more preferential policies you can get, which Li Weidong certainly knows.

Many investors will first give a very large number during investment negotiations and ask for preferential conditions, but it is hard to say how much can be implemented in the end.

Therefore, when statistics are compiled, there are two figures: "attracting foreign investment" and "actual utilization of foreign investment." Because "attracting foreign investment" is often just a rhetorical figure, "actually utilizing foreign investment" is the real deal.

If you encounter a master like Cai Jinhui, who doesn't see rabbits and doesn't let go of hawks, you will definitely not be able to get high just by talking, you will have to spend real money.

One billion is not a small amount of money for Li Weidong. At least Li Weidong really can't afford so much money now.

Previously, all Li Weidong's spare money was invested in coal mines, and he also owed a large loan. As coal prices rise, Li Weidong should also start making money.

But not long ago, a large number of coal mine equipment was updated, and all the money just earned was invested in it.

So now Li Weidong really can't afford one billion.

Although Li Weidong had no money, he had plenty of money in the bank, so Li Weidong planned to go to the bank for help. He dialed the phone number of Director Sui of the bank.

After the two exchanged a few words, Li Weidong explained his intention.

"Loan? No problem. How much does Chairman Li intend to borrow?" Director Sui asked.

"Loan one billion first!" Li Weidong replied.

"This is not a small amount of money. I have to report it to the leader." Director Sui paused and then said; "But you have helped us so much before, I think the leaders in the industry will definitely not refuse. ”

"As for interest..." Li Weidong continued.

"Don't worry about the interest. I'll give you a 30% discount. There will definitely be no problem." Director Sui agreed casually.

If it were in later generations, the person in charge of a bank at the prefectural or municipal level would be able to approve a loan of just one billion, and there would be no need to apply for it at the top at all.

But it was 2003 after all. It is not an exaggeration to say that one billion yuan at that time was equivalent to 10 billion yuan today.

Some people may still think that one billion yuan at that time must be worth more than 10 billion yuan now.

A loan of such a large amount naturally needs to be reported to the head office for approval.

As for the 30% off interest, the bank will definitely still make money, but it will just be less.

During the previous Enron collapse, Director Sui followed Li Weidong's judgment and sold Enron-related investments to avoid the bank's losses.

Later, Director Sui also asked Li Weidong for information. Li Weidong, based on the principle of forming a good relationship, told Director Sui that Shitong Company was about to go bankrupt.

Soon after, Shitong Company indeed filed for bankruptcy, and Director Sui personally came to the door with gifts to thank Li Weidong.

Enron's bankruptcy case has been called the 9/11 incident in the American financial world. WorldCom's scale is larger than Enron's, and its impact is much greater than Enron's.

However, after Enron had problems, it went bankrupt in just over 20 days. This caught many investors off guard and did not have time to react, so they were deeply hurt.

After WorldCom had problems, it took more than half a year before it filed for bankruptcy. During this period, many investors had already ran away. Although there will be some losses, it is better than losing all your money.

Of course, there were also some gamblers who thought WorldCom could come back to life and wanted to buy it at a low price. Naturally, they lost everything.

…

In the conference room of the head office, Director Sui reported on Li Weidong's need for a loan.

The amount of one billion may be an astronomical sum for the branches below, but it is not much for the head office. Director Sui feels that this report is just a walkthrough of the process, and then the loan can be approved directly.

"Director Sui, this Puppy Group wants a loan of 1 billion. Did you tell me what kind of collateral it will take?" one of them asked. This person's surname was Wang, and he was the new executive director who was airborne.

The boards of directors of large banks are relatively diversified. Basically, there will be several executive directors, several non-executive directors, and several independent non-executive directors. Generally, the chairman and vice chairman will each hold the position of executive director, and the real decision-making power lies in the hands of the executive director.

So Executive Director Wang still has a lot of say.

Director Sui had no choice but to explain: "Puppy Group did not provide collateral, this loan is a credit loan!"

"How about a billion-dollar credit loan?" Director Wang raised his eyebrows slightly.

"For large enterprises, we have always been allowed to issue credit loans." Director Sui continued: "And the Puppy Group has always been our old customer with good credit status and is responsible for the conditions for issuing credit loans quickly."

"But the amount of one billion is really too big. I think we should be more cautious." Director Wang shook his head.

"The operating conditions of Puppy Group have always been very good, and Li Weidong also has other industries in his hands. He is capable of repaying a loan of one billion yuan. Many of our customers have financial situations that are not as good as that of Puppy Group, and we have approved them. It's a loan." Director Sui replied.

"What about the interest? It's already a credit loan, so we should charge more interest! At 30% off interest, we will lose tens of millions a year!" Director Wang continued.

"Director Wang, it's like this. Chairman Li of Puppy Electric has helped us before. The information he provided us helped our bank avoid a large loss." Director Sui said.

Director Sui then recounted the bankruptcy of Enron and the bankruptcy of WorldCom.

"These are all things that happened before I came here." Director Wang snorted coldly, with an air of denial.

Director Sui said: "Director Wang, after all, doing business requires courtesy. Li Weidong has helped us, so we should also give him some preferential loan interest rates!"

"Even if it's a courtesy, we won't give him a 30% interest rate! If you give him something and apply for the most advanced VIP credit card, you'll be returning the favor!" Director Wang curled his lips.

As soon as these words came out, many people's eyes showed violent colors.

A person who can borrow one billion yuan will lack what you have? Do you need the most advanced VIP credit card? You are too whimsical!

Director Wang also felt that he had made a mistake, and then he coughed dryly to hide his embarrassment, and then said: "Although I have just become an executive director, I am not very familiar with many businesses.

But the superiors sent me down to serve as the executive director just to rectify the credit loan matter. Last year, the central bank issued a document requiring the regulation of bank credit loans. This year, it has issued multiple instructions to prevent credit risks and promote the healthy development of the financial market.

As you all know, our country's commitment to joining the WTO also involves the financial system. We Chinese have always valued commitments. In the next few years, the country will also introduce corresponding policies to achieve the commitments made that year.

Therefore, the international and domestic financial situation we face is still relatively severe. In the future, under the guidance of the policy of expanding domestic demand, we must continue to implement prudent monetary policies, maintain the continuity and stability of monetary policies, and maintain the good momentum of stable economic and financial development.

Therefore, we should pay more attention to and guard against potential financial risks when money and credit grow rapidly, strengthen loan risk warning and detection, further optimize the loan structure, and effectively prevent the emergence of new loan risks! "

As expected, Director Wang came down by air and talked endlessly about the instructions from his superiors. After hearing these contents, everyone could only nod in agreement.

Director Wang talked for a long time and finally concluded that he did not recommend approving this billion dollar loan.

Others did not object. After all, he is an executive director, so there is no need to fall out with an executive director over this matter.

Besides, Director Wang has just become the executive director, so if you play devil’s advocate for him, you will understandably offend others.

Moreover, the interest on this loan is only 30% off, so the bank cannot earn much. If it is granted to others, the full amount of interest, or more interest, will be charged, and the bank can earn more.

As for the favor owed to Li Weidong, then there is no choice but to be unethical!

Anyway, it was Director Wang who did not approve the loan. If the matter of being unethical and disrespectful comes up in the future, it will be Director Wang who will take the blame anyway. Others can even pretend to be innocent behind his back and step on Director Wang again.

Moreover, between banks and companies, companies are more likely to beg banks. The rich these days are the fathers, so banks are not afraid of offending Li Weidong.

Even if Li Weidong was offended because of this matter, the bank still has many big customers, and there are still many people asking for loans, so one more is not a lot, and one less is a lot.

If you look at the annual profits of various banks in later generations, and think about how troublesome it is to apply for a loan, and even apply for a bank card, you need to apply for a bunch of certificates, and you will know that banks have no shortage of customers for loans.

Banks have always been worried that they have too little money to lend out!

Seeing that no one in the conference room was willing to stand up and speak, Director Sui couldn't help but feel a little anxious, but others spoke softly, which was not enough to compete with Director Wang, the executive director.

If a dignified executive director is determined not to pay attention to etiquette, there is really nothing he can do!

Director Sui had no choice but to say: "Li Weidong's predictions on the economic level have always been very accurate. According to the information we collected before, he once predicted the economic bubble in Japan and the financial crisis in Asia. In addition, Enron and WorldCom I have just reported this to all leaders.

I think we should be friends with such entrepreneurs. After all, our bank has investments all over the world. If it can give early warning about the risks of these investments, it can help us avoid a lot of losses.

The previous bankruptcy of Enron and WorldCom are the best examples. If we had not avoided these two risks, we would have lost hundreds of millions of dollars!

If we turn against Li Weidong this time and something like Enron's collapse happens again in the future, he will not give us prison guards, and our bank may suffer huge losses by then. "

"Of course there are risks in investment, and isn't risk assessment the job responsibility of your investment department?" Director Wang smiled coldly and continued;

"If you did not discover the risk and the bank suffered losses, it was your work error! Don't pass on your work responsibilities to others.

Moreover, investment and lending are two completely independent departments. Why should the lending department pay for the work of the investment department! "

Seeing Director Wang's resolute attitude, Director Sui had no choice but to shake his head helplessly and stop arguing.

…

"The loan was not approved?" Li Weidong's tone was a little surprised.

Li Weidong felt that he had helped the bank a lot with the previous bankruptcies of Enron and WorldCom. Even if it was to repay a favor, the bank should not grant loans.

Director Sui sighed helplessly, and then said: "I originally thought that this loan should go smoothly. Reporting to the board of directors is just a process.

But it was vetoed by a new executive director. I also reported on the things you had helped us with before and the credit situation of your puppy group, but his attitude was very firm and he would not approve it! "

"What's the surname of this executive director?" Li Weidong wondered in his mind whether he had sinned against him before.

"My surname is Wang." Director Sui continued: "Chairman Li, don't think too much, Director Wang is probably not here for you."

"It's not for me, is it for you? Did you sin against him in the past?" Li Weidong asked with a smile.

"How can it not be possible? Although Director Wang came down by air, he was also our leader before. How dare I offend him!" Director Sui quickly shook his head and continued, "I think Director Wang might want to take advantage of him. This matter establishes authority!”

"I understand! It's the loan I want, not the time." Li Weidong nodded.

There is an old saying that says there are three things a new official should do when he takes office. If a leader who comes down from the air wants to avoid being ignored, he must find a reason to establish his authority. In this process, there will inevitably be a few scapegoats.

Now Li Weidong has become the scapegoat.

In order to establish his authority, Director Wang was worried that there was no reason. Li Weidong applied for a loan. So Director Wang simply vetoed Li Weidong's loan. Regardless of whether the reason was reasonable, other directors gave him face, and his authority was established.

"I have suffered an unreasonable disaster! It seems that I have to find another way!" Li Weidong sighed helplessly.

It is said that doing business is about courtesy and reciprocity. But when the bank acted rogue, Li Weidong really had no choice.

For example, Litai is not responsible for this kind of thing, it is limited to the case of lack of money from the bank. If too much money is given, it is an unjust gain for the depositor and the money has to be returned. Who can explain this!

Director Sui asked, "Chairman Li, can you wait a little longer for this loan? Maybe things will turn around!"

"Turnaround? There's not much chance." Li Weidong shook his head: "Since Director Wang is determined to use me to establish his power, it is impossible to approve this loan again, otherwise it would be a slap in the face!"

Director Sui smiled slightly and said, "Besides looking for a bank, there are other places to go for a loan!"

"You won't let me find a loan shark, right?" Li Weidong asked.

"Loan sharking is illegal. As a financial practitioner, how can I break the law?" Director Sui lowered his voice and continued:

"My job may have changed recently. I will be transferred to the China Insurance Regulatory Commission. At that time, I can establish my authority and find a way to find an insurance company to grant you a loan of one billion!"

"It's really another village with a bright future!" Li Weidong breathed a sigh of relief: "Director Sui, I would like to congratulate you on your promotion in advance!"

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