My Age of Investment

An hour later, Andrew and Xia Jingxing drove to Firstrade's San Francisco branch.

After parking the car, the two were brought into a conference room by Liu Hai, who was greeted by the station door.

A few steps into the conference room, Xia Jingxing didn't communicate with Liu Hai at all, not wanting to be too close to avoid implicated each other, and only gave the latter an encouraging look.

Liu Hai almost understood the meaning, and after leading Xia Jingxing and the two into the conference room, he left the conference room with a little uneasiness and waited outside for the result of the discussion.

At the long table of the conference were five middle-aged Chinese men, both men and women, all of whom were middle and senior managers of First Securities.

They shook hands with Xia Jingxing and Andrew, and after reporting their identities to each other, they began to talk about the topic.

"Mr. Xia, have you considered it?"

Xia Jingxing glanced at Andrew, who replied on his behalf: "We decided to find an accountant and a tax accountant to re-report the tax."

Hearing Andrew say this, the five First Securities executives were all relieved.

Nearly a million dollars in taxes, they were also afraid that Xia Jingxing would be killed and not pay the tax.

In this way, it would be difficult for them to do it, and it would be impossible to force Xia Jingxing to file taxes.

What if Xia Jingxing became angry and dragged First Securities to end together?

The taxes were paid honestly, the years were quiet, and everyone was at peace.

"but……"

Andrew spoke again, "In this matter, Firstrade did not fulfill its due reminder responsibility, or misled customers...

When my client, Mr. Xia, opened an account with Firstrade, he was told that he could open an account with a mainland ID card and be exempt from capital gains tax...

But now, a capital gains tax of up to US$900,000 has been incurred, and First Securities must compensate Mr. Xia Jingxing for his losses. "

Xia Jingxing did not speak, and quietly observed the faces of the management of several securities companies.

Sure enough, when Andrew said this, the faces of several executives suddenly darkened.

Xia Jingxing mourned for Liu Hai for three seconds in his heart. Once he asked for compensation, Liu Hai would definitely be punished by the company, no doubt about it.

But there is no way, business is business, favor is favor, one yard is one yard.

In this matter, obviously you can't suffer the loss silently because you have friendship with Liu Hai.

On Liu Hai's side, he won't make it difficult for the other party, and the place has been arranged, it depends on whether he wants to go.

"Did our company's broker make such a guarantee when opening an account? Mr. Andrew, everything needs to be evidenced!"

The executives of Firstrade have also seen the world, and they are not afraid of the lawyer Andrew at all.

Andrew smiled lightly, "It doesn't matter if you don't admit it. Mr. Xia and two friends also opened accounts with Firstrade Securities. They have heard the same promise and can act as witnesses when they appear in court."

"Mr. Andrew, Mr. Xia, there's no need to be so unpleasant."

One of the five female executives spoke in a very soft tone.

She continued: "When Mr. Xia came to Firstrade to open an account, because he didn't have a social security number, he couldn't actually open a securities account.

It was our First Securities who provided such an opportunity that Mr. Xia could make such a huge profit.

If it really goes to court, Mr. Xia's profits may be regarded as "illegal income" and will be recovered by the SEC according to law. "

Andrew shrugged and said calmly: "Compared to the loss of 3 million US dollars, First Securities lost more, right?

For example, if the brokerage investment banking license is revoked, and the SEC issues a sky-high fine? "

"It doesn't make sense to lose both sides, Mr Andrew, we should focus on the win-win situation for both sides."

Andrew smiled and said, "Yes, but only if,

You must make some compensation to Mr. Xia Jingxing.

If your business hadn't gone wrong and misled my client, he wouldn't have to pay, not even a cent, capital gains tax. "

Several Firstrade executives will naturally not agree to compensation easily, even if they are psychologically prepared for compensation, they cannot agree too readily, otherwise they will feed the other party's appetite.

So they argued with Andrew and threatened each other.

Xia Jingxing didn't interrupt, just drank tea quietly and let Andrew play freely.

Fatty Andrew, as an economic lawyer, is extremely skilled in his business. Various cases of securities companies being fined come to him when he opens his mouth.

He also took the initiative to help First Securities calculate the account, how much it might be fined, and how much the loss would be.

The two sides talked for several hours, and the five First Securities executives felt tired, but Andrew, who was in a one-on-five situation, was still alive and kicking, his mouth was like a machine gun, and he kept pounding.

"Okay, we are willing to compensate Mr. Xia Jingxing $50,000, which is our biggest concession.

You know, our company has not made this amount from Mr. Xia. "

Seeing Andrew was really difficult, the people from First Securities began to give in.

It was only $50,000, which obviously did not satisfy Andrew's appetite, or did not meet the expectations of the parties.

He shook his head, "You have the main responsibility for this matter. You have to bear at least two-thirds of the $900,000 in taxes, which is 600,000."

One is 50,000 and the other is 600,000. The two sides have great differences.

There was another quarrel, no one would give in, and the negotiation came to a deadlock.

…………

…………

The next day, the two sides conducted a second round of negotiations.

Andrew made a new condition that confused Firstrade executives a bit.

They repeatedly confirmed, "Ten million dollars, three-year interest-free loan?"

Andrew nodded, "Yes, if you agree to lend money to Mr. Xia Jingxing, we can give up other compensation and no longer pursue First Securities' fault."

"What about the collateral? Ten million dollars is not a small sum."

Xia Jingxing, who was sitting aside, interjected: "I also have an Internet company with a current valuation of over 100 million. I can pledge 10% of the equity to you."

The executives of Firstrade Securities obviously knew part of Xia Jingxing's background, and shook their heads: "Sorry, we do not accept pledges of Facebook's equity.

Only received angel round investment, the growth is not sure, and the risk is too great.

We are a securities company, not a venture capital institution.

If it is the equity of a listed company, we can accept the pledge without hesitation.

Or quasi-listed companies after the C round and D round are also fine, and the business, revenue, profit, etc. are relatively stable.

If the loan is overdue or bad debt, there is no need to worry about no buyer taking over the equity.

And start-ups may close down one day, and the equity is not in their hands? It can't be realized either. "

Xia Jingxing said calmly: "Facebook has made millions of dollars in profit, and Google once offered tens of millions of dollars to acquire us. The equity is not as worthless as you think."

"This is definitely not possible, change other conditions!" The executive of First Securities decisively refused.

Andrew glanced at Xia Jingxing with a playful look.

After hearing that Xia Jingxing proposed such a new condition yesterday, he persuaded this little brother.

Don’t look at Facebook, which is very popular with VCs now, but it’s still a long way to go if you want to use equity to find loans from various financial institutions.

Google's quasi-listing can borrow because it has stable revenue and profits there.

How long has Facebook been in business? It simply cannot pass the risk control of major financial institutions.

And this is not a loan in the name of the company, but a loan in the name of the shareholder, which is even more difficult.

No, it was a waste of effort to be rejected as soon as he opened his mouth.

After being rejected, Xia Jingxing was not discouraged: "I borrowed this money to invest in securities. After the loan is received, the account is still opened with your company. You can supervise the account and confirm that the loan is not used for other purposes. .

In addition, I can also put one million to two million principal into this securities account. "

"Isn't this a margin account? 5x or 10x leverage?" asked a Firstrade executive.

"Not the same, this account is not allowed to close positions, nor does it set intraday or overnight risk control values.

If this happens: after the principal of 1 million or 2 million I invested has lost, the loan of 10 million has also begun to suffer losses, and you cannot close the position for me.

This is very different from the margin account. It is a three-year long-term loan. After the maturity, I will repay you the 10 million principal on time. "

Xia Jingxing was someone who had suffered a loss once, and was slightly vigilant and cautious about leverage.

It was interesting to see the senior management of First Securities. Compared with the margin account, the loan proposed by Xia Jingxing was undoubtedly more flexible and could withstand a very large stock price rebound.

They wonder, is this confidence in the target stock or not?

In fact, Xia Jingxing only knew the long-term trend of Amicco's stock price, and did not understand the rebound of the stock price in the middle, so he did not dare to increase leverage rashly.

Otherwise, he would not have given up on recovering the compensation from Firstrade, and came up with a compromise solution of borrowing 10 million US dollars.

Compared with asking for hundreds of thousands of dollars in compensation, the principal of 10 million dollars is provided to him for three years, which is more favored by him.

The entry window for Amicable stock is already very short, and he simply doesn't have more time to spend with Firstrade to compensate for differences.

He can't afford it!

In addition, the interest-free loan he proposed was just a condition for testing the waters. First Securities could accept it the best, but he could not accept it. He could pay part of the interest and use the loan for a fee.

In fact, he and First Securities are holding each other's handle and want to ask for a large amount of compensation, which is very unrealistic.

It's really going to be a court case, and no one can please anyone, so the SEC can only be cheap, and two fines will be charged.

He went from asking for cash compensation, to reconciliation conditions for interest-free loans, and even paid loans.

The purpose is to test the bottom line of First Securities, and at the same time reduce the psychological threshold of the other party, so that the other party has a "earned" mentality in order to achieve the ultimate goal!

The financial industry in the United States is very developed, and securities companies like Firstrade can borrow a lot of low-cost funds from other financial institutions in the form of lending and issuing bonds.

How low is it? The annual interest rate does not exceed 2%.

They then lend to these retail investors at 6% annual interest and leverage to earn the difference in the middle.

Fees and commissions gradually do not occupy the bulk of the profits of brokers. In the future, many brokers will even exempt fees and commissions, mainly to earn the lending spreads of customer margin accounts.

He borrowed $10 million from First Securities, interest-free for three years.

Assuming that the loan is not risky, Firstrade only needs to discount less than $600,000, or even lower.

If he borrows money for a fee, Firstrade only needs to play the role of a channel, and there is no need to bear any loss.

The main differences between the two sides are still entangled around collateral, repayment ability, etc.

Xia Jingxing explained to several senior executives of First Securities for a while, but still could not convince them.

He pretended to be impatient, and followed the steps to release a little sweetness: "Well, I don't want to be interest-free, I will borrow 10 million US dollars and pay you 2% interest per year. After three years, the principal and interest will total 10.6 million US dollars. One-time settlement for you.

In addition, the collateral is still the equity of Facebook. You can also supervise the securities account. If there is a big problem, you can also ask me. "

What Xia Jingxing said about securities account supervision actually sounds nice.

As long as he opens an account with Firstrade, the other party will definitely be able to see the transaction records of his account in the background.

Saying it is the same as not saying it.

However, First Securities lent him such a large sum of money, and he must be afraid of him running away.

If the stock is sold, deposited or withdrawn, there will definitely be someone calling to inquire.

But these are not things he should worry about, he just needs to show the conditions.

Several senior executives of First Securities looked at each other and were a little moved.

The other party pays 2% of the annual interest. Their company is equivalent to no interest discount and no money. At the same time, they have reached a settlement with Xia Jingxing, so there is no need to compensate the other party for their tax losses.

"We need to discuss it!"

Several Firstrade executives are still uncertain about the collateral of "Facebook equity".

If the collateral risk wasn't that high, they wouldn't have to be so hesitant.

Xia Jingxing nodded, "Yes, but you must give me an exact answer within today."

………………

PS: Thank you for the power of bullets, I miss you 756, An Han Da, book friend 20201009194742567, Bo Da j deep for making holes and waiting for Jiayin as a reward!

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