Darkstone Code

Chapter 1491: Chapter 1489: Wanting a Piece of the Action

The President’s work capabilities are still commendable, especially when he categorized Lynch’s large loan as bad debt, demonstrating his exceptional personal skills.

Bad debt means the bank cannot recover that money, so naturally, it is considered bad debt.

Due to this bad debt, the bank’s asset evaluation decreased by millions.

How was a bank valued at over a billion gradually hollowed out?

Take a look here; just shift a little this way, a little that way, and then a run on the bank leads to bankruptcy...

With the President’s cooperation, the investigation team’s inquiry into the bank’s internals quickly yielded results: all decisions were made by the former Grand President, who had died in an attack.

He instructed the President to print some non-circulating, non-documented currency to meet Lynch’s loan demands.

He made a grossly wrong decision, knowing both Lemar’s economy and the National Bank couldn’t meet Lynch’s loan needs, and attempted to cover up these issues.

But now, all the "facts" have surfaced.

No matter his intentions, he made a mistake!

Now, because of these poor choices, Lemar is suffering severe consequences.

The investigation team submitted its findings to the delegation, and at the same time, Lynch’s intention to acquire the Lemar National Bank was also submitted.

After the delegation’s communication with the domestic side and subsequent negotiations with the Grand President, the Lemar Republic’s Parliament and the Grand President finally agreed to Lynch’s request.

On the Monday of the second week of June, Lynch and the Grand President of the Lemar Republic signed a full acquisition agreement at the Lemar National Bank.

The bankrupt Lemar National Bank would be fully acquired for seventy-five million Federation Sol plus fifty million in Darkstone Foundation bonds, obtaining ninety-nine percent of the shares.

The reason it’s ninety-nine percent is that one percent remains with the Lemar Republic Government.

At the same time, Lynch must assume all the debts and deficits, fulfilling all withdrawal requests from depositors as per the agreement signed with the Lemar Republic.

This involves withdrawal demands amounting to billions and trillions of Yares, which Lynch has also agreed to.

The series of tasks such as integration, debt splitting, and debt fulfillment is expected to be completed within a year, with deposit withdrawals to be resolved within six months.

This means Lynch must pay all depositors wanting to withdraw within six months, or this acquisition will trigger some additional clauses.

Many are skeptical of Lynch’s operations, despite knowing he wants a bank, especially one with the right to issue currency, but he’s too reckless.

Once the cooperation between the Federation and Lemar is confirmed, the Yares exchange rate will spike, and people only need to wait until the rate normalizes, leaving Lynch facing at least a demand of over five hundred million in withdrawals.

He simply cannot produce this amount of money!

Despite Darkstone Airlines recently receiving an order worth over two billion from the Federation, the actual profit after fulfilling these orders is just three to four hundred million.

After distributing dividends to shareholders and multiple bonuses, Lynch would be lucky to see even a hundred million in his account.

Unless he mortgages all his assets to the bank or sells some, even if he could scrape together the money, it would crush his other industries!

To the Federation people, having money and being able to produce it are two different matters.

Just like the Lemar National Bank right now, who’d dare say it has no money?

Of course, it has money; it has many loan services, holds shares in many companies, and has many investments underway but not yet showing returns.

These are all its assets; Lynch’s valuation of approximately nine hundred million isn’t random.

Yet it still went bankrupt!

Having money and being able to produce it are two different matters.

Having money signifies your worth, but being unable to produce it means bankruptcy looms!

If all Lynch’s liquid funds are used for deposit withdrawals, the cash pressure on his industries would be immense, potentially triggering a chain reaction.

In the Federation, for the financial wolves, they’ll challenge anything as long as they see sufficient profit and success rate, there’s nothing they won’t do!

Once vulnerability appears within the Darkstone system, these wolves and sharks will swiftly gather to shred Lynch to pieces.

Many are curious as to how Lynch plans to overcome this crisis, while some view it as his most foolish investment yet, though many privately reach out hoping to form a "joint acquisition."

For instance... the Big Six.

Lynch and Jogriman haven’t met in two years; because of their good relationship, Jogriman was transferred to Nagariel as the President of Golden Exchange Bank there.

To the Federation’s entire industry, Nagariel is a huge treasury, holding secrets that can make one a millionaire!

With a population of two hundred million, even if only a tenth of the people deposit a hundred dollars a year at the Golden Exchange, that’s twenty billion in annual savings!

In reality, this number is much larger, as the growing market not only has savings services but also loan services.

To adapt to Nagariel’s unique social environment, the bank has introduced an entirely new loan service called the "employment loan mechanism."

Simply put, to obtain a loan, one must first have a stable job, then, based on their salary level and position in the company, undergo an evaluation to determine the amount of loan they can receive.

If someone fails to repay the loan on time, the bank will directly demand their salary from the company. If the person has quit and is unwilling to repay, they will be blacklisted.

At that point, all of Nagariel society will offer this person no chance of survival. All companies connected with the Federation will not hire this person, and all businesses with banking ties will also avoid him.

He will lose the foundation to live here!

Until he pays back the money.

Of course, if someone truly cannot repay, it’s okay to explain the situation to the bank. The bank will arrange a job for the debtor until the debt is fully cleared.

Jogriman found his work in Nagariel progressing smoothly due to Lynch’s support and, now older, he is too lazy to strive further and plans to retire there.

To Federation people, Nagariel is like paradise; low prices, low cost of living, and a person living on a low Federation pension can directly enter the middle class in Nagariel.

For someone like Jogriman, whose pension reaches nearly a thousand dollars, life here is immensely enjoyable!

Plus, he has considerable savings and is engaged in investments. Excluding some inconveniences during summer, he finds little to adapt to and has decided to settle here.

Most of the time, there’s nothing to do, so he plays sports with friends and colleagues, swims, exercises, attends parties, and private gatherings, it’s simply paradise!

Until... the head office of the Golden Exchange sent him a file, hoping he could go to the Lemar Islands to meet Lynch and best persuade Lynch to spare some shares for the Golden Exchange’s interest in Lemar National Bank.

In recent years, Jogriman hasn’t focused on Lynch as before, mainly due to their infrequent contact and few meetings.

Sometimes, relationships are often maintained through interactions; if you haven’t seen someone in a long time, seeing them again might only feel strange.

That’s how Jogriman felt.

He couldn’t refuse the head office’s arrangement, so he packed his bags and headed to Lemar. Upon seeing Lynch, he indeed felt a bit of unfamiliarity, but it quickly dissipated.

The two shook hands, walked, and chatted; Lynch didn’t seem much different from before, but the growing weight of his demeanor commanded more reverence.

"...so you’ve come this time to discuss cooperation with me?"

Lynch looked at him, Jogriman didn’t shy away, nodding, "The bank’s intention is that they are willing to offer about thirty million to purchase fifteen percent of the bank’s shares from you."

The entire acquisition case values around one hundred and twenty million, Golden Exchange offers thirty million, about a quarter, yet asks for only fifteen percent; from this perspective, they appear genuinely sincere.

However, Lynch smiled and shook his head, "Everyone’s pretending to be ignorant. This bank is worth at least one billion two hundred million, and I believe that within five years, it will be worth two or even three billion."

"The Golden Exchange’s executives show no sincerity at all, making this negotiation very difficult."

During acquisition, there’s always an attempt to undervalue it, but once acquired, everyone knows its true value.

Moreover, as the National Bank will act as a bridge for communication between Lemar and Federation capital, its role will only grow, and its asset market value will increase!

Three million wouldn’t even warrant one and a half percent, let alone fifteen percent.

Jogriman did not show an unpleasant expression due to Lynch’s refusal; in the banking and finance industry, getting scolded to your face is common.

If I want your money, then being scolded a bit to please you isn’t an issue; what you seek is psychological comfort, and I just want the money—

The money in your pocket!

After Lynch said about as much as he could, Jogriman continued, "We’ve noticed you have significant pressure regarding cash flow, and we happen to solve that pressure."

"I’ve been given some authority, let me give you a hint."

"Twenty-five million, for ten percent of the shares!"

"Before I came, they told me this is the final offer, and I think this price... actually shows great sincerity!"

This price means Lynch would have doubled the market value of National Bank after acquisition.

However, apparently, they still underestimated Lynch’s capabilities.

As for money... whatever Lynch wants, he can have as much as he likes!

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