In a small tea house in Beijing, Old Wang, while drinking with Huang He, said, "After I leave school this time, I'm afraid I'll be directly assigned to a second-tier position!"
His face was flushed, and he occasionally showed expressions of extreme pain. After all, Old Wang was only 55 years old and the head of the provincial branch. The opportunity for further advancement was very high, but now he had to go to a second-tier position. Who could tolerate this?
"What's going on? Isn't that chairman no longer able to hold his position for much longer?" Huang He asked curiously.
"Yes, he can't stay, but he still needs to make arrangements before he leaves!" Old Wang sighed, "The local official is not as good as the current one. As long as he is still the chairman, he can still have personnel management rights within the company."
"He is now preparing to arrange several of his confidantes in important positions so that after he leaves, he won't be completely forgotten and can still hold a certain degree of influence."
"But there are only so many positions available, and my position as the head of the provincial branch is one of them. Since I'm currently studying, it's very normal to be replaced."
"Moreover, you and I are one. Although that chairman withdrew the lawsuit at a critical moment, it doesn't mean he doesn't hate you. After all, if you had just surrendered and handed over the company to him, he could have become the chairman of the World Bank. But you resisted, which offended him!" Old Wang chuckled. "So, I'm also implicated and can never make a comeback." xxs1
"Well, according to you, I was wrong to resist!" Huang He said with a grin.
"You're not wrong, and he's not wrong. It's just me who's unlucky!" Old Wang was getting drunker, and his words were filled with more and more resentment, like a resentful woman in her boudoir.
"What if I can help you regain your position, or even advance further?" Huang He asked indifferently.
"Impossible!" Old Wang waved his hand. "He hates both of us to death and won't allow me to get better."
"That's not necessarily true!" Huang He smiled slightly. "You and I are in the same boat. You've fallen to this point because of me, and I will never abandon you. Just wait and see how beautifully I'll handle this for you!"
"Besides, your bank seems to have forgotten how serious the consequences are this time!"
***
As time passed, the sudden attack on Jiangnan Group seemed to have quietly ended. In fact, apart from the previous scandal caused by a high-ranking executive violating financial policies, the impact of the other matters on society was almost negligible.
Among ordinary people, almost no one knew that the entire Jiangnan Group had almost changed its name and ownership.
However, within the circle of entrepreneurs, this incident spread like wildfire.
After all, GH had gone too far this time, touching the bottom line of many private entrepreneurs.
That's right, although I did borrow money from you, and although I may have indeed misused the loan, it was all understood. How could you use such methods to swallow my company?
Although this only happened to one company, Jiangnan Group, if there's one, there could be a second. Therefore, the matter spread like wildfire throughout the circle. Almost all entrepreneurs knew about it, which severely damaged GH's reputation. The consequences mentioned by Huang He had already begun to manifest.
GH Bank's corporate loan volume began to decline sharply. September is the peak period for business development and also the peak period for loans. Many companies repay their debts in this month and then borrow more funds.
But soon, GH staff discovered that many companies, after repaying their loans, no longer continued to borrow new loans as they had in the past to maintain operations.
This was an incredible situation because most companies have very tight cash flow. How could they have billions of dollars in cash like Boss Huang? Normally, 90% of companies operate with debt.
Therefore, after repaying old loans, they must borrow new loans, because the money used to repay the loans was almost all borrowed, with high interest rates, and had to be repaid in a short period.
The best way was naturally to borrow a new loan.
This kind of business was already very mature within the bank. According to the previous rules, within a day or two after the old loan was completed, the company would reapply for a new loan. Due to the previous cooperative relationship, the company would basically choose to take out loans from the original bank. These were the self-retained markets for each bank.
But now, GH's self-retained market had suddenly lost about 20% of its share.
That is, 20% of the companies, after repaying their loans, did not choose to borrow immediately. When the sales representatives reacted and inquired, they found that these companies had already borrowed from other banks.
In other words, this self-retained market that originally belonged to GH was gone.
This caused panic throughout GH. For a bank, lending is its main business, and corporate loans are one of the most profitable businesses, second only to mortgage loans.
The volume of corporate loans of a bank often determines the scale of the bank's development. The loss of 20% of its self-retained market at once was enough to cause the entire GH's market value to drop by over 10 billion.
GH immediately began to investigate the reasons and then realized that it was the follow-up impact of the previous Jiangnan loan incident. These 20% of companies felt that GH was unreliable and feared that they would suffer the same fate as Jiangnan Group in the future. They did not have the ability of Huang He to turn things around with just a few phone calls.
So, it was better to stay far away from GH.
This result left everyone at GH stunned and anxious. They hated that chairman even more. It is said that someone inside was now pointing at his spine and cursing him.
After all, this chairman had packed up and retired, and didn't care about the flooding after his departure. But the current senior executives were miserable. These performance failures would be attributed to them, making it difficult for them to advance further in the future.
Just as everyone at GH was anxious about this, astonishing news arrived: the finance department of Jiangnan Group was systematically transferring funds from the accounts of its various subsidiaries.
As soon as the funds in the accounts were transferred out, they would apply to cancel the accounts. In a blink of an eye, 60% of Jiangnan Group's accounts at GH had entered the account cancellation review process, and the remaining 40% of the accounts were also in the process of transferring funds. If it weren't for some procedures holding them back, these accounts would also have entered the cancellation process.
"It's over. With Jiangnan Group withdrawing, we at GH will be on the front page again!" a senior executive said painfully.
"More than just the front page! Jiangnan Group's monthly capital flow in our bank exceeds 5 billion RMB, which amounts to 60 billion RMB annually. Additionally, Jiangnan Bank's funds in our bank, totaling about 3 billion RMB, will also leave. Our financial report for this year will likely decrease by several tenths of a percentage point!" another senior executive said.
"You're thinking too optimistically. More than tenths of a percentage point! I just received news that the Jiangnan Liaison Office under Jiangnan Group has also begun to transfer funds from all their corporate accounts. Starting tomorrow, they will likely follow suit and cancel their accounts. I heard that several other banks have already smelled the news, and their provincial branch managers are almost living at Jiangnan Group's headquarters, washing Huang He's feet and begging Huang He to transfer their companies' funds to their banks."
"Is there such a thing? How can this Jiangnan Group have such great influence?"
"Such great influence? You're wrong, there's even greater! Haven't you forgotten that Jiangnan Group led the establishment of the China Electronic Technology Industry Development Alliance?"
"Originally, due to our cooperation with Jiangnan Group, all the accounts of this alliance were to be opened with our bank. This alliance currently has over 600 companies, and these 600 companies have over 600 associated accounts. The monthly turnover of these 600-plus associated accounts combined will likely exceed one hundred billion."
"Now that Jiangnan Group is withdrawing, these accounts will also be gone. It remains to be seen which bank will benefit in the end, directly increasing their performance by 1 percentage point this year."
"How can Jiangnan Group do this? We had such good cooperation before, and we even exceptionally gave them a 1 billion USD loan. At that time, besides our bank, who had the courage and boldness to give them so much in loans? Now they are kicking us when we're down, it's simply heartless!"
"Yes, too heartless!" several chatting senior executives agreed in unison.
Well, it was definitely Jiangnan Group that was heartless, not them.
"But if Jiangnan Group has lost its conscience, we are truly going to suffer immensely!" a senior executive with only a few stubborn hairs left sighed. "Have you considered a more terrifying scenario? As far as I know, the entire private enterprise circle is paying attention to the Jiangnan matter. If Jiangnan Group leaves, it might trigger a larger withdrawal trend. I fear that many companies will completely withdraw their cooperation with our bank like Jiangnan Group. In that case, the losses might not be just a few percentage points, but over ten or even dozens of percentage points."
"..." Everyone fell silent. Thinking of this scenario, each of them felt a chill to the bone.
After all, GH had just become the number one bank in China by market value. It was possible that within a few months, it would drop to the last-ranked large bank, and they would become a timeless joke in the banking industry.
"It seems that the only way to save the situation is to have someone step forward to salvage the crisis!" the most senior executive stood up and said.