Legendary FBI Detective

New York, Wall Street, the tenth floor of a certain building.

Staring at the silent white man before him, Luo An calmly sat waiting, the other party's information surfacing in his mind.

Michael Brey, a value investor, fund manager, the man at the helm of a firm known as "Heritage Capital."

Before 2008, although he was known, there weren't many who knew of him, not until the subprime mortgage crisis and financial crisis erupted, and Michael Brey's name then became well-known to many.

He was on record as the first man who, through analyzing subprime loan bond prospectuses, fluctuating interest rates, reimbursement records, and the like, came to realize that the subprime crisis was certain to explode and consequently took a short position against the federal real estate industry.

The means he utilized to do this was by creating and purchasing a Credit Default Swap (CDS) financial product from various investment banks, including Goldman Sachs, Lehman Brothers, Deutsche Bank, Bear Stearns, among others.

The specific contents of CDS are complex; to make a simple analogy, it's akin to someone purchasing insurance for Old Wang's car next door.

While he isn't the owner of the car, if the car gets totaled, he can take that insurance policy and claim money from the insurance company.

Someone's betting that Old Wang's car will be totaled, the insurance company is betting it won't be, and this insurance policy is akin to a legal bet.

This car represents the federal real estate industry.

"Mr. Greenwood, there's something I don't quite understand."

After a long contemplation, Michael Brey looked up at Luo An and asked:

"There are many CDS products being hawked on the market out there; why didn't you go to them to purchase? Instead, you came here to invest with me?"

Ever since he created a CDS product pegged to the federal real estate industry and spent a substantial sum to purchase it, Michael Brey's reputation started to resonate throughout Wall Street.

However, this reputation wasn't a good one; everyone was praising him behind his back as a huge fool.

Because the federal real estate industry was booming, no one believed it would run into any trouble.

Luo An smiled and said:

"You need help, and I need someone experienced to grasp the investment for me."

Short selling the federal real estate industry is not as simple as just purchasing a CDS financial product—after all, apart from A-rated CDS, there's a multitude of other levels like B and C, comprising intricate and numerous details.

The current time was April 2006, 16 months away from August 2007; with so much time, Luo An couldn't possibly devote all his energy to this one matter.

"Mr. Greenwood is indeed candid."

Hearing Luo An's words, Michael Brey chuckled, and without a few seconds of hesitation, he nodded in agreement, then added:

"There are some things I must declare in advance, I will ensure that the capital you invest will all be used to purchase CDS products shorting the federal real estate industry.

But this will take a long time. I probably won't be returning your capital to you before April '07."

Since creating and purchasing this CDS product in 2005, Michael Brey had been under considerable pressure.

He had taken a total of 1.3 billion US Dollars from investors to short the federal real estate industry; yet, the federal real estate industry was thriving without a hint of collapse, and Michael Brey still had to pay a hefty sum every month to investment banks such as Goldman Sachs according to the CDS arrangement.

To succeed, Michael Brey even forcibly tied up the investors' money, refusing to let them withdraw, which led those investors, including Michael Brey's boss, to curse him out.

This was also the reason Luo An said earlier that Michael Brey needed help.

Luo An didn't decline Michael Brey's condition, but he didn't immediately agree either. Instead, he asked:

"Mr. Brey, are you sure the time frame is April '07?"

Michael Brey's eyes slightly narrowed:

"Mr. Greenwood, do you have doubts about this timing?"

"Indeed, I do."

Luo An nodded, knowing why Michael Brey set the timing to April '07—because around that time, the Federal Bank would have its first rate hike.

Michael Brey's gamble was that, as the bank increased rates, the federal populace buying homes on loans would start to default and choose to bail, ultimately leading to the collapse of the federal real estate industry.

With a slight chuckle, Michael Brey responded:

"Mr. Greenwood, if you have doubts about the timing, I would suggest you..."

Michael was interrupted mid-sentence as Luo An cut in:

"I think the time frame is too short!"

"...Too short?"

Hearing this word, Michael Brey instantly froze, then asked with a tense face:

"Mr. Greenwood, is there any news?"

Thinking of Luo An's FBI identity, Michael Brey's first thought was that he had heard some insider information.

"No, I don't have any news."

Luo An shook his head, then smiled and said:

"Mr. Brey, you focus on data, on market patterns.

But what I pay attention to is human nature and tactics."

The Wall Street corporate battles in novels: strategy, tactics, holistic views, brilliant predictions, top minds in virtual warfare.

Whereas in the reality of actual corporate battles, it's about unplugging network cables, deleting code, shutting down servers.

The highest level of corporate battle often only requires the simplest of interventions, like poisoning, robbery...

Luo An knew that when the Federation Government hiked interest rates for the first time and people started fleeing because they couldn't repay debts, the first thing those investment banks on Wall Street thought of was definitely not how to resolve the debt crisis, but to transfer those junk debts to the uninformed.

Those investment banks would continue to pretend all is well; the stock prices in the federal real estate sector would not drop until one of the investment banks eventually collapsed under the pressure.

This period would need at least a few months.

So Luo An said:

"I think it would be better to push the timing back a few more months."

For certain considerations, Luo An did not specify the exact time, but only gave a suggestion.

"..."

Hearing Luo An's words, Michael Brey was silent for a long time, then suddenly stood up, reached out his hand to Luo An, and with a firm handshake, said sternly:

"Mr. Greenwood, I assure you, this time it will definitely be successful."

Michael Brey is a very rational person, firmly believing that the data would not be wrong, that things would develop according to what the data indicated.

But Luo An's words just now had given him a wake-up call; the data was indeed correct, but humans have subjectivity, and some events would always turn out quite differently due to human thinking.

Luo An smiled and shook hands with Michael Brey, who then asked:

"May I know how much investment capital Mr. Greenwood has prepared?"

Since founding "Transhuman Capital," Michael Brey had continuously created astonishing returns for investors:

In 2001, Transhuman Capital had a return rate of 55.44%, and in 2003, it was 50%.

Michael Brey demanded a high commission, but he equally respected his clients, always believing that sincerity is the most useful investment.

Having heard Luo An's words and realizing many things, Michael Brey was very grateful to Luo An because he could save himself from taking many detours.

Michael Brey had already decided in his heart that even if Luo An's investment was only a few hundred thousand dollars, he would strive to get the maximum return for Luo An.

"I don't have much to put into the investment."

Luo An smiled, producing a piece of paper with an account number from his pocket.

Michael Brey's expression remained unchanged. He had been prepared for the possibility that Luo An wouldn't have much money, so he took a seat, started up his computer to prepare for work, and asked:

"Is it convenient to mention the specific amount?"

Luo An put the paper on the office desk and chuckled:

"Not much, just 450 million."

"??!!"

Hearing the number Luo An had stated, Michael Brey, who had been typing on the keyboard, instantly froze, then turned his head incredulously:

"Excuse me, Mr. Greenwood, I must have misheard, did you just say...?"

"You heard right, it is 450 million."

Luo An's lips curved slightly; in fact, he had a total of 550 million US dollars, but to be cautious, he chose to leave behind 100 million untouched.

Receiving the affirmative answer, Michael Brey's eyes widened in shock, and he struggled to find words, his throat moving, but speechless.

Suppressing his astonishment, Michael Brey spoke solemnly:

"Mr. Greenwood, with a capital of 450 million US dollars, I can help you purchase up to 3 billion US dollars' worth of CDS products at bbb rating."