Chapter 1192 - Making Soros the scapegoat again
Chapter 1192 – Making Soros the scapegoat again
Feng Yu’s worries had come true. His company had shorted the US stock markets the most, and after this incident, he made the most profits.
But Feng Yu is Chinese and not an American. He is also influential, and Bush’s administration sent officials from the Securities and Exchange Commission to investigate.
“Mr. Feng, this is a routine investigation. I hope you can understand.” Tony Thomas bow slightly.
Feng Yu crossed his legs and leans back on the sofa. “Of course. Just ask whatever you want. Oh, I hope you all can remove all your recording devices.”
Feng Yu’s office is equipped with bugs and recording devices detector. Although it is not state of the art, it can detect most of the recording devices.
The other party smiled and removed his watch before passing to Feng Yu’s bodyguard. He had already been searched once before entering the office.
“Mr. Feng, we are curious why did you short the Nasdaq stock index in large volume this time?”
“What do you mean?” Feng Yu asked unhappily.
“Mr. Feng, the stock market crashed, and even Warren Buffet had suffered massive losses. But your company made…”
Feng Yu interrupted. “Are you saying I must also suffer losses when others lost money? Then why do we need trading brokers? Everyone can just follow the trend and invest. Are you really from the SEC? Are you an imposter?”
The veins on Thomas’s forehead nearly burst. I am an imposter? Your bodyguards had searched me thoroughly and almost checked all my cavities before I can enter your office. We had also made multiple calls before this meeting. How can you not know about my identity?
But Thomas knows he had asked the wrong question. Warren Buffet is known as the God of investing, but Feng Yu is also known as Investment Genius.
During the Asian Financial Crisis, Feng Yu had made the most money, and his net worth shot up to the second spot of the <Forbes> World’s Richest Man.
If Feng Yu had made money from other incidents, the SEC would not be suspicious. But this incident is too sensitive.
“Mr. Feng, I hope you don’t mind. It’s fine if you shorted the market in a small amount. But the amount you shorted is too much.”
“Too much? Didn’t you all notice that I had also hedged against it? Don’t you know that I had sold my Microsoft, Yahoo, and many other companies’ shares two years ago? Are you telling me that I should keep all my money in the bank for interest? Do you know about finance? Do you know what inflation is?”
Smith almost shouted. I might not be a top financial expert, but I am not inferior to most brokers. How can I not know about inflation?!
Fine. The person opposite me is Feng Yu. I will tolerate this as long as he answers our questions!
“You all asked me why I had not invested in other areas, right? Why should I explain my investment directions to you all? My company is not listed and does not need to announce all our decisions. Do you all know what confidentiality of investment information is?” Feng Yu said before Thomas can continue with the questioning.
Smith replied with an angry expression. “We know about all these. But this time is different, and your investment is too special.”
Feng Yu lit a cigar but did not offer Smith. He blew out a mouthful of smoke. “Are you sure you had not offended your supervisors, and they had purposely made things difficult for you? Have you all investigated this thoroughly? Someone else had made more money than me from this incident.”
Smith was stunned, as he doesn’t know about this. If Feng Yu is telling the truth, then that person should be investigated!
“Mr. Feng, someone had made more than you?” Thomas asked.
“Of course, and this person is quite famous too. I am sure you all have heard of him. Suppose he had not made the wrong investment decision previously. In that case, he should be one of the top Billionaires on <Forbes> list.”
“Who is he?” Thomas asked.
“Quantum Fund. Soros!”
It’s him?!
Soros was formerly the top fund manager globally, and his Quantum fund had caused havoc in forex markets around the world. In the end, he made the wrong decision during the Asian Financial Crisis, and Feng Yu emerged as the winner.
These two men should not be cooperating in this, as they have grudges against each other.
“Are you sure about this?”
“You will know if you all look into it.” Feng Yu replied with a smile.
Feng Yu was also surprised when he knows Soros had also shorted Nasdaq and even use leverage to make more profits than him.
This Soros is resilient. Even when the Quantum fund is left with less than 2 billion USD and most of its top fund managers had left, he can still turn things around.
2 billion USD might be a lot to many people, but it is too little for a hedge fund.
Compared to Quantum Fund’s peak, where they managed tens of billions, 2 billion USD is nothing.
But Soros used this 2 billion USD to invest in tech stocks. When Feng Yu dumped Microsoft and other companies’ shares, Soros had also sold his shares at the peak.
After that, Feng Yu starts to short the Nasdaq index, and Soros followed. When the Nasdaq stock index stopped falling, Soros settled his short position contracts decisively. Wind and Rain Consulting had suffered some losses, but the Quantum Fund did not lose a single cent.
If it wasn’t afraid to get implicated in this incident, Feng Yu will also not invest this way. But now, with Soros as the scapegoat in front, Feng Yu can explain himself.
“Also, I am saddened by this incident and had asked my men to donate some money to the victims. As for why had I shorted the market, it is only a normal investment decision. I think you all should know that I had started to short the Nasdaq at the end of 1999. That’s because I noticed the existence of the internet bubble.”
“After the dotcom crash, many companies are found to had fabricated their financial reports and accounts. This incident had caused the market to crash again. During this period, the market had recovered slightly, and I even suffered some losses. I had shorted the stock index, and the deadline to settle my short position contracts is in October. This is coincident. What’s the problem?”
Thomas doesn’t know what to say. Feng Yu seems to be not involved in this incident, and he was also in the US when the incident happens. If he knows about this incident beforehand, he should be somewhere safe like China.
Yes. We must start investigating Soros immediately!