[Chapter 843: Not My Doing]
"George, is it a good time to talk?"
"Hang on, Allen. Let me switch to another line."
After the dramatic fallout between Citigroup and William White, everyone had become more cautious about making calls. For anything significant, they still preferred to use those anonymous calling cards.
"What's up? Allen, calling at this hour. Is there something important?"
"I just had a meeting with Old Koe. Someone mentioned that you were shorting the global stock market."
"Cough, cough, cough. Who said that?" After a fit of coughing, Soros nearly lost his composure. This was news that not only reached the President's ears but was now something even the head of the Fed needed to clarify.
"George, the person who said it isn't what matters. Your Quantum Fund is very much in the spotlight."
"Damn it, I've just begun to get started. By the way, if someone is shorting everything, that would have to be William White, right? He hasn't left out oil or gold either."
Greenspan shook his head in disbelief. It was ridiculous to compare. William, the media tycoon, had managed to keep Soros out of the headlines. Plus, shorting oil and gold was just plain hedging; it was nowhere near what Soros was doing.
Greenspan understood, and so did Soros. William had securities and commodities--this level of shorting was merely a hedge. Soros, on the other hand, was deep into speculation without a penny of stock backing him.
"George, are you planning to pull off some extreme moves?"
"No, the timing isn't right. The Latin American markets are too small; the White Fund is wrapping things up. What would I charge in for?"
"Ha, George, you could certainly give him a run for his money. But since you're not ready, maybe it's wise to keep a lower profile. The folks on Fleet Street will certainly be watching you."
"Did you forget that you're the guy who took down the British banking system?" Greenspan chuckled lightly, amused at how William had a knack for deflecting blame.
"I get it. I won't accept any more media interviews for now."
Sometimes, leveraging a star fund manager's clout was genuinely advantageous. Soros and Buffett had both mastered these little tricks. Unfortunately, their media access couldn't compare to White Media's.
Greenspan really had to make this call. The situation with Mexico was bad, but Canada was also troubled. He wondered if they might drag him down too. When they encouraged their two firms to sign, they didn't mention anything about the situation they were facing now.
And Soros? He was likely just a pawn in all this chaos. This guy was known for causing turmoil, having brought down the Italian lira and the British pound.
It was bad news all around. If Soros kept acting without restraint, this would definitely affect him too.
"Sir, there's been a sudden spike in the Nikkei 225 holdings, but we can't track the clients making these trades. All we know is they settled through accounts at Barings Bank."
William White fell silent. If his assumptions were correct, things could get dicey. One trade could wipe out a bank with a history spanning hundreds of years.
"Barings? That's too minor, right? If it were Standard Chartered or Barclays..."
"Cough, boss, it's small but not insignificant. They recorded $150 million in profits last year. They're not exactly a small player."
William White found this amusing. Filson was calling it big money; if it were only a couple hundred million, he wouldn't hesitate to toss that proposition out the window.
"Buying calls on the Nikkei 225? How many futures are we talking about?"
"At least a hundred thousand."
"Well, that feels off. Filson, if the index drops a hundred points, can Barings cover their losses? But since someone has taken the plunge, we might want to up our position. This is absolutely crazy."
"Alright, I really want to know who has the guts for this."
"Filson, it's not about who has guts; there are plenty of folks with the capital to back it up. However, what I don't get is why Barings is backing it. We don't know how many times they're leveraged, but it sure can't be a small ratio. This could mean tens of millions up or down, which is just wild."
Filson would never have guessed that the ones making such bold moves were actually two minor players. They looked more like desperate gamblers at that moment.
What if they chose to short the market? They could become heroes of the company. But this was something that couldn't be explained with hypotheticals. Illegal was illegal; it didn't matter what their intentions were.
"Shorting the Nikkei 225? Why on earth?"
"I don't know. From last year's perspective, Japan has significant chances to pull out of its slump. Even if some uncertainties exist, there isn't much room for a significant downturn."
"This guy has gone mad. Leave that information with me and arrange a meeting with the senior management." Jealousy, once rooted, was hard to eradicate.
Soros was different from Buffett; even if Buffett remained neutral toward White, he had no intention of making enemies. But Soros had taken enough hits. If he spotted a chance, he wouldn't hesitate to teach William a lesson.
To be honest, Soros might just be bored. The White Fund and White Investments were part of family funds. In other words, no matter how much he earned, he wasn't competing for clients. If one played their cards right, William would even consider sharing a piece of the pie.
After all, who would not like money?
Sadly, this silent old wolf was just too solitary.
The real issue was that William had advantages others didn't. He lacked scruples--using foresight to portray himself as a genius.
Ugh!
If he cared about his reputation, he'd keep his distance from Soros. Even if they managed to avoid conflict this time around, the Asian financial crisis still loomed large.
Soros wasn't invested in industries; he could just pack up and leave. William didn't have that luxury. If he aligned himself with Soros, how would he continue working in the U.S. later?
Watching an NBC program, Soros couldn't help but feel a smirk. "I didn't even make that much money. How dare you say such things? The peso's collapse had nothing to do with me. Alright, even if it did, it wasn't direct. I don't take money for free; do you think I'm an idiot?"
A while ago, a group of individuals reached a consensus. Japan's economy wouldn't fully recover, but the room for decline was also quite limited.
Mentioning Soros positively wouldn't damage William's reputation either. Currently, Soros and Buffett were the hottest fund managers on the scene.
Peter Lynch had aged; it was time for someone else great to step in. If one wasn't enough, then two would have to do. A dynamic duo, ha-ha, this was just a bit too theatrical.
As for William White? Let's skip that. He seemed more like a businessman. Or perhaps, no one could decisively tell what his main business was. One thing was for sure: he was definitely not just a fund manager.
*****
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