Chapter 325: The Legendary Boss and the Four Largest Banks in the United States
Today, Yahoo's stock performance after listing on NASDAQ shocked the bigwigs of Wall Street!
So tonight, all the big bosses of Sequoia Capital and Morgan Stanley were invited to attend today's private dinner.
After attending Yahoo's first day of listing and lunch on NASDAQ, Moritz returned to the Sequoia Capital office in the afternoon and received a hero's courtesy. The whole office stood up and applauded his wise eye!
When Moritz returned to the office, Yahoo's stock had just broken the $70 mark, and the market value of the 5.62 million Yahoo shares held by Sequoia Capital reached an astonishing billion US dollars.
This billion US dollars is a shocking 245 times the $1.6 million invested in April last year!
Today's beautiful performance of Yahoo's stock price undoubtedly gave an invisible and loud slap to the old antiques who disagreed with Moritz's suggestion to continue to increase Yahoo's capital!
The battle with Yahoo has made Moritz's pivotal position in Sequoia Capital in the future!
In the afternoon, Chairman Don Valentine even regarded Moritz as the company's biggest treasure.
Looking around the world and the long history of mankind, how many incredible stories of getting rich quickly can there be when investing $1.6 million can turn into $100 million in one year?
Therefore, it is reasonable for Sequoia Capital Chairman Don Valentine to be invited to attend today's dinner.
However, the busy CEO John Mack of Morgan Stanley was also invited to attend today's dinner, which surprised Jerry Yang, Masayoshi Son and others.
When Mary Meeker accompanied John Mack to Li Xiaofan, she introduced him:
"John, this is Mr. Li Xiaofan of Singapore Yifan Holdings!"
John Mack extended his hand to Li Xiaofan in a friendly manner and said with a smile: "Young man, I have seen your style on TV this morning. Your English is fluent and great!"
"Mr. John, it's nice to meet you, thank you for your compliment! How is your business in our joint venture project in mainland China, CICC, going well?" Li Xiaofan smiled humbly.
After hearing this, John Mac laughed out loud: "Li, you actually know that our company has a joint venture project in mainland China, great!"
The full name of CICC mentioned by Li Xiaofan is China International Capital Corporation Limited, which was established in June 1995 and is the first Sino-foreign joint venture investment bank in mainland China.
As the first Sino-foreign joint venture investment bank in China, CICC has a high starting point. The sponsors are five well-known shareholders, including the former China Construction Bank, Morgan Stanley International, China Economic and Technical Investment Guarantee Corporation, Singapore Government Investment Corporation GIC and Hong Kong Mingli Group, which hold 42.5%, 35%, 7.5%, 7.5% and 7.5% of the shares respectively.
The establishment of CICC broke a precedent. Because the China Securities Regulatory Commission at that time stipulated that the foreign party of a joint venture investment bank could not exceed 33%, but CICC became a special case: Morgan Stanley held a 34.3% stake, and together with Singapore Government Investment Corporation GIC and Hong Kong Mingli Group, the total foreign party ratio exceeded 50%.
At that time, John Mack, on behalf of Morgan Stanley, and several other shareholder representatives of CICC: Mr. Qishan, then President of China Construction Bank, Jiang Lemin, then President of China Economic and Technical Investment and Guarantee Corporation, Zheng Guoping, then Vice President of Singapore Government Investment Corporation, and Cha Maosheng, then Managing Director of Hong Kong Mingli Group, gathered at Diaoyutai and held a grand signing ceremony.
It is said that after the establishment of CICC, the cooperation between the two major shareholders, Morgan Stanley and China Construction Bank, has not been very pleasant for the control rights, but the financial elites of Wall Street still taught the domestic elites the rules of investment banking. According to an investment banker who has worked in CICC for many years, when CICC first started to go out to discuss business, Morgan Stanley’s people sat in the front and led, while the Chinese side sat in the back to learn.
At that time, the Chinese were very smart and quickly learned all the tricks of Morgan Stanley...
Later, people objectively evaluated that Morgan Stanley's greatest contribution was not only to establish a complete investment banking system for CICC, but also to cultivate a group of backbone financial talents for CICC and even the Chinese capital market, making CICC the most professional international investment bank in China.
John Mack, the CEO of Morgan Stanley at the time, was also a legendary figure.
Morgan Stanley was originally the investment department of JP****. After entering 1995, Morgan Stanley expanded further and acquired an asset management company in 1995. In 1997, it merged with Dean Witter, an investment bank under Sears, and changed its name to Morgan Stanley Dean Witter.
This merger in 1997 brought together two of the most distinctive bankers in the US financial industry: John Mack of Morgan Stanley and Philip Purcell of Dean Witter. However, the two most distinctive bosses subsequently led to constant conflicts between the two, which eventually ended with John Mack's resignation in July 2001.
In 2005, the shareholders of Morgan Stanley invited John Mack back to Morgan Stanley as chairman and CEO, and gave him an extremely generous bonus: stock dividends worth $27 million. The shareholders promised him that he would receive stock dividends of $5.4 million each year in the next five years. In addition, the board of directors of Morgan Stanley also guaranteed that Morgan Stanley's total salary in 2005-2006 would not be lower than the salary of the CEOs of the other four major financial companies on Wall Street (Goldman Sachs, Merrill Lynch, Lehman Brothers and Bear Stearns). The average income of the CEOs of the above four companies was $25 million last year...
The global financial tsunami that followed later washed away countless Wall Street elites, but John Mack, who took the helm of Morgan Stanley again in 2005, led his team through the numerous difficulties that followed and became a legendary hero!
Li Xiaofan never dreamed that he could sit on an equal footing with a legendary figure like John Mack in this life. They all held glasses, talked about love and romance, and pointed out the world!
While talking, several bigwigs in the financial industry came one after another.
There were executives of Citibank, Wells Fargo, Bank of America and ****, the four major banks in the United States at that time. The assets of the four major banks in the United States accounted for about half of the total assets of the US banking industry. They all have a long history and have developed through many mergers and acquisitions.
Tonight, Citibank was invited by Sequoia Capital, **** Bank was invited by Morgan Stanley, Wells Fargo was invited by Masayoshi Son, and Bank of America was invited by Jerry Yang and Filo. They all have close cooperative relations.
Tonight, Li Xiaofan was the happiest. He originally wanted to consult the bank about how to pledge his Yahoo for a loan. Now it comes without any effort!