mesbooks Chapter 281 Each Gets What They Need
Chapter 281 Each Gets What They Need
(Thanks to "影梦星蓝" for the author's certification! Today's chapter is over 5,000 words long~)
The Metropolitan Club. The Roosevelt Suite.
The heavy mahogany double doors closed silently behind us.
The soft clicking of the door hinges shut out the faint sounds of conversation in the corridor and the light footsteps on the thick wool carpet.
The suite was dimly lit, with dark walnut wood paneling swallowing up most of the already limited light. The rich, smoky aroma of aged cigars mingled with the subtle sweetness of aged cognac, lingering in the stagnant air.
An elderly white man with gray hair, wearing a bespoke British tweed suit, was sitting on a Chesterfield leather sofa in the center of the room. This secret White House envoy, who held the title of Goldman Sachs honorary director, heard the door open, put down the Wall Street Journal in his hand, and stood up with his hands on his knees.
"Ms. Saionji. Mr. Frank."
Richard spoke in a gentle, familiar tone, offering only polite greetings. He took a half-step forward and extended his right hand.
"I'm Richard. It's a pleasure to meet you both in Manhattan."
Satsuki stepped forward. Today she was wearing a dark black fitted suit with a pure white silk shirt underneath. She extended her fair right hand and gently shook hands with the other person.
"Mr. Richard, it's an honor to meet you." Satsuki's voice was clear and crisp. "It's a privilege to receive a private invitation from an honorary director of Goldman Sachs."
Frank, carrying a black briefcase, stood quietly to Satsuki's side and slightly behind. He shook hands with Richard and then sat down on the single sofa to the side.
Richard gestured for Satsuki to sit down in the opposite seat, the host's seat.
He turned and picked up a bottle of decanted red wine from the ice bucket on the marble coffee table. The deep red liquid flowed smoothly from the bottle into two Baccarat crystal goblets.
"This bottle of wine is from Hill Country Winery in Texas."
Richard pushed one of the glasses of red wine toward Satsuki, a meaningful smile playing on his lips.
"The sun shines very well there. The grapes tend to be sweeter than those from the Bordeaux region. I hope you enjoy this robust flavor."
Satsuki picked up the crystal glass.
The deep red wine clung to the glass, forming viscous legs.
I was right.
Given the revolving door politics of the Bush administration and Goldman Sachs, Richard is most likely someone sent by the White House to test him.
Satsuki brought the wine glass to her lips and took a small sip.
"The fruity aroma is indeed very strong." Satsuki put down her glass, savoring the lingering taste in her mouth. "However, it's a little too sweet. Personally, when dealing with certain matters, I prefer a crisp and clean taste."
Richard smiled. He sat down on the sofa opposite him, crossing his arms over his stomach.
"Decisive and efficient. Our friends in Washington also describe the Saionji family's recent style of doing things in the same way."
Richard looked at Satsuki, a hint of scrutiny in his eyes.
"To be honest, Ms. Saionji, the speed at which the Tokyo Cabinet approved that $13 billion in military spending this time is truly astounding."
Richard leaned forward slightly and placed the wine glass steadily on the table.
"Did you know that while those members of Congress on Capitol Hill in Washington were still arguing fiercely about the Middle East budget, the funds from Tokyo were already safely sitting in the Pentagon's reserve account?" He shook his head slightly, a meaningful smile playing on his lips. "Privately, the President has been full of praise for Prime Minister Kaifu's 'boldness'."
"Everyone knows this. In this world, the only people who can get the notoriously slow-moving Japanese bureaucrats to complete all the funding procedures in just a few days are those who hold their votes and political donations," Richard tapped his fingers lightly on the back of his hand.
Satsuki leaned back against the leather sofa.
She met Richard's gaze and maintained her elegant smile.
"Mr. Richard, capital has always pursued efficiency and security."
Satsuki's voice spread gently through the quiet suite.
"The tension in the Persian Gulf is escalating. If oil shipping routes are cut off, the entire industrial system of the Far East will face paralysis. At a time when the lifeline of a nation is threatened, it is the social responsibility of businesses to urge the cabinet to fulfill its obligation to share the defense costs with the free world as soon as possible."
She picked up the sparkling water from the table.
"Moreover, efficient cash flow is essential to minimize casualties among the United States' young soldiers in the desert. Only with adequate logistical support can the guns on the front lines be held more firmly."
Richard's eye muscles twitched slightly.
At such a young age, he already possesses a masterful command of diplomatic language.
He picked up his glass of red wine, took a sip, and quickly adjusted the pace of the conversation.
"Ms. Saionji's concern for the safety of her allies is truly touching."
Richard put down his glass, his smile fading slightly.
"However, while Washington is paying close attention to the situation in the Middle East, it is also highly vigilant about the flow of assets within the country."
He extended his index finger and tapped the edge of the coffee table.
"Recently, we, SA Investment, have just completed the transfer of ownership of 40 Wall Street with Restructuring Trust (RTC)."
Richard's tone began to lower.
"That's a landmark building that has witnessed half a century of Wall Street history. Although the Committee on Foreign Investment in the United States (CFIUS) has temporarily approved the deal, many members of Congress are very uneasy about Far East Capital's aggressive acquisition of core Manhattan assets during this economically sensitive period."
They believe this is a subtle erosion of the United States' economic sovereignty.
Frank, who had been sitting quietly to the side, straightened up slightly.
He was preparing to provide RTC clearing data as a legal defense.
Satsuki raised her left hand and gently pressed it down in mid-air, stopping Frank from speaking.
"Eroding economic sovereignty?"
Satsuki gently covered the corner of her lips with the back of her fingers, her eyebrows curving upwards to reveal a soft, gentle smile.
She gazed at Richard, her expression still gentle and serene.
"Mr. Richard. With hundreds of savings and loan banks across the country going bankrupt one after another, the federal government's budget is probably already depleted to cover these bad debts, right? I heard that the liquidators who restructured the trust companies are now looking at those vacant buildings that can't be sold at all, and they're almost ready to write their resignation reports."
"The fireproofing layer on the ground floor of 40 Wall Street still contains carcinogenic asbestos that was illegally installed in the 1970s. Do you think any of the shrewd large commercial banks in the country would be willing to approve even a single dollar in repair loans for such a flawed building that could easily attract environmental lawsuits?"
She clasped her hands together, her elbows resting lightly on the armrests of the sofa.
"This building remains on your books, and the exorbitant maintenance and security costs alone are a huge drain on your finances every day."
"SA Investments put up hundreds of millions of dollars in pure cash and bought out this mess that no one wanted in one go. We are cleaning up the fiscal garbage for the US government, which is mired in a savings and loan crisis, and we are filling the hole of bad debts for you."
Satsuki's speaking speed gradually increased.
"For such a timely act of kindness, it's one thing for the members of Congress on Capitol Hill not to award a medal of honor, but they actually seem... uneasy?"
"If the legislators you're referring to are truly so concerned, I'd be happy to have the legal team immediately halt the handover process for the remaining twenty buildings. Let those legislators foot the bills that will be mailing to their desks tomorrow."
Richard's breathing stopped for a moment.
The other party's tough stance was completely beyond his expectations.
In past dealings with Japanese zaibatsu, these company presidents often showed fear and quickly compromised on prices or additional terms when faced with administrative pressure from Washington and the intimidation of CFIUS scrutiny.
But this young woman not only showed no fear of the CFIUS brand, but also used the vulnerability of cash flow to blackmail Washington.
They've been outmaneuvered.
Richard coughed lightly, quickly finding a way to back down.
"Ms. Saionji, you flatter me. I think there's been a minor misunderstanding." Richard quickly changed his tone, his expression softening again. "The restructuring of the trust company is very grateful for the cash liquidity provided by SA Investment. You're solving a problem for the federal government; the White House will naturally handle any minor noise from Congress."
He picked up the wine glass again and slowly ran his fingers along the inside of it.
Since he couldn't break through the opponent's defenses in the battlefield of financial mergers and acquisitions, he decided to get straight to the real core issue of today's meeting.
"Asset acquisitions are legitimate business transactions. Washington naturally respects the rules of the free market."
"However, some actions that go beyond the scope of business are difficult to explain using conventional economic logic."
He placed the wine glass on the table, leaned forward, and closed the physical distance between himself and Satsuki.
"That team operating outside the Saudi Dhahran base."
Richard stared into Satsuki's eyes.
"Although they were ostensibly commercial employees, Pentagon inspectors discovered that the team's equipment list and personnel qualifications seemed to far exceed those of a typical engineering team. Moreover, they were all carrying passports issued in Tokyo."
Satsuki sat upright on the sofa, meeting his gaze.
Richard's tone carried a hint of danger.
"If State Department officials have any unnecessary 'associations' about this, anonymous letters could appear on the desk of the editor-in-chief of The New York Times at any time, detailing how a Far Eastern tycoon used private military-industrial financing to send a combat-ready force into the Middle East."
...How boring, it's the same old thing again.
Satsuki picked up the sparkling water in front of her and took a small sip.
"Mr. Richard, you've probably forgotten whose account that two billion dollars in the Blindwater Fund is currently in."
She put down her water glass, her expression completely calm.
"The Carlyle Group's partner list is full of retired Pentagon generals and former staff officers. Legally, this rescue team is a defense contracting project under their names."
"If The New York Times did receive that anonymous letter, I think the next morning, there would also be a detailed financial statement of dividends on the front page of The Washington Post."
She clasped her hands together, her elbows resting lightly on the armrests of the sofa.
"It will be clearly stated above how this private equity group with military ties obtained funds from Far Eastern financial magnates to help foreigners obtain access to the Ministry of National Defense's theater commands."
"Why don't you guess what will happen if the White House were to expose this? Will those generals and members of the Senate Armed Services Committee who are counting on this huge bonus to fill their campaign funding hole throw a tantrum and tear the White House down?"
Richard's eye muscles twitched slightly.
It's that trick again! Don't you have any other options?!
The other party is certain that those people in the military have already received the money, and if they go back on their word now, they will be ruining the livelihoods of a large number of people.
Richard coughed lightly, concealing the frustration in his eyes.
"Ms. Saionji, you misunderstand. I was just stating a possible risk."
"But now it seems we were overthinking it."
He quickly changed his tone, and the smile on his face became gentle and sincere again.
"In fact, this risk never even had a chance to develop."
"On another note, several veteran generals in Washington have been full of praise for SA Global Rescue's logistical efficiency at the D'Arland base."
Richard gently swirled the wine in his glass, his tone mild.
"The Carlyle Group's recent outstanding returns from the Blindwater Fund have allowed the members of the Senate Armed Services Committee to enjoy a rather comfortable summer. The military is very grateful to Ms. Saionji for her generous support of the allies' defense."
Satsuki remained unmoved by the praise. Frank also remained quietly seated to the side. Both knew this was merely a polite prelude before getting to the main topic.
Sure enough, Richard changed the subject and leaned forward slightly.
"The military got the guarantees they wanted, and the White House is naturally happy to see that." Richard's smile faded slightly, replaced by a worried expression. "However, the voters of the United States don't care what's happening in the desert ten thousand miles away."
"Due to the impact of the savings and loan crisis, the domestic unemployment rate remains high, especially in several major energy states in the South. The President has recently expressed deep concern in his office for the oil workers in Texas who have lost their jobs."
Satsuki's gaze lingered on Richard's compassionate face.
She finally understood. It wasn't enough that the Pentagon was already satisfied; the White House wanted a share too.
When it comes to skimming fat, these people are quite skilled.
She picked up her water glass, took a sip, and readily accepted the hint the other person had thrown out.
"The President's concerns are truly touching."
"It is a blessing for the American people to have a president who cares about the people like this."
Satsuki put down her water glass and met Richard's gaze.
"We share this sentiment and cannot bear to see the American people suffer."
"As a socially responsible and internationally conscious company, we are also very happy to help our President."
"SA Investments is currently adjusting its asset structure in North America. We have noticed that, due to the impact of the previous credit tightening, a large number of independent oil fields and refineries in Texas with high-quality development potential are on the verge of bankruptcy liquidation."
"If the restructuring trust company is willing to provide some facilitation in the review process, SA would be happy to use a considerable amount of pure cash to take over these non-performing assets and fully restart those idle drilling platforms."
Richard's eye twitched very slightly.
Restarting drilling platforms in Texas means creating tens of thousands of jobs out of thin air in the southern energy industrial belt.
This is the current president's hometown, his largest vote bank, and the political bargaining chip he most desperately needs for re-election.
It seems the other party understands the rules and knows how to give them a way out so they can explain themselves when they get back.
He picked up his wine glass, and the smile on his face became incredibly genuine.
"The United States welcomes any well-intentioned investment that contributes to the prosperity of local economies."
"So, Ms. Saionji, what kind of assistance do you need from the White House?"
Satsuki leaned back in her leather chair.
"I want to buy a license."
She looked at Richard, her expression still gentle.
"Keep a close eye on those executive agencies under Washington's control, including the Committee on Foreign Investment in the United States (CFIUS) and the Securities and Exchange Commission (SEC)."
"In the coming months, Japan will witness an unprecedented massive asset liquidation. The Saionji family will reap the rewards from the ruins of their homeland."
She rested her elbow lightly on the armrest.
"I want Washington to assure us that the highest levels of the U.S. administration are strictly prohibited from interfering with the Saionji family's acquisitions of core assets in Japan's semiconductor supply chain, pharmaceutical industry, and banking sector under any pretext of national security or anti-monopoly."
"I want that hunting ground to be kept clean."
Richard stared at Satsuki's face, his mind racing.
It's now very clear that she wants to take advantage of the situation to seize Japan's economic lifeline.
But this is nothing compared to the chances of reelection in the general election.
As long as dollars flow into Texas, Washington doesn't care what she does in the Far East.
"Is it limited to semiconductors, healthcare, and banking?" Richard cautiously confirmed the boundaries of the transaction.
Satsuki picked up the sparkling water in front of her.
"certainly."
She watched the tiny bubbles rising in the glass, a gentle smile playing on her lips.
Richard thought for a moment, then his expression softened.
"Ms. Saionji's suggestion is very fair."
He raised the Baccarat crystal glass in his hand, his tone becoming solemn.
"I will convey this sincere investment plan to the economic advisory team in Washington."
"With these drilling rigs in Texas, the White House has ample reason to appease the State Department's overreacting civil servants."
He looked at Satsuki and gave her the political endorsement of the White House.
"The President will personally guarantee that any unfounded speculation about that civilian aid team will never appear in the mainstream media in Washington. Their logistical work in Saudi Arabia will be under the strictest protection of the United States."
Satsuki also raised the water glass in her hand.
"It's a pleasure doing business with you, Mr. Richard."
"bite."
Glass and crystal gently collided in mid-air, the crisp sound echoing melodiously throughout the suite.
"It was a pleasure working together. May the friendship between Japan and the United States last forever."
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Author's Note (separate from the main text, optional reading; simply an explanation of the logic behind this chapter):
Regarding Satsuki's acquisition of the Texas oil field in this article, some readers might think, "Oh, author, how could the Americans sell something as vital as oil fields, which is crucial to a nation's energy lifeline, to foreign capital? You're such a foolish and naive person!"
I think I need to explain this.
First, in reality, from the late 1980s to the early 90s, Texas was severely impacted by the double blow of falling international oil prices and the savings and loan crisis, leading to the bankruptcy of a large number of local independent energy companies and soaring unemployment. At that time, the Restructuring Trust Company (RTC), which was in charge of the liquidation, was indeed frantically selling off these bad assets to global capital in order to cash out.
For Texas local governments and Washington politicians who are desperately short of cash flow and need to save workers' jobs, foreign investment (especially Japanese capital with huge amounts of US dollars) is extremely welcome from an economic perspective as long as it can bring real money and solve employment problems.
Secondly, in Satsuki's plan, she did not acquire super energy giants like ExxonMobil or Chevron that affect the lifeline of the nation, but rather "independent oil fields on the verge of bankruptcy".
In reality, under U.S. law, foreign acquisitions of such marginal, bankrupt, independent oil and gas assets are subject to considerable scrutiny by CFIUS, provided that the acquisition does not involve the transfer of core strategic technologies and that the company commits to employing American workers domestically and does not affect the country's energy self-sufficiency.
Furthermore, in the story, Satsuki has deeply tied her enormous profits to the Carlyle Group, a military-industrial private equity firm with Pentagon ties. This "parasitic relationship," in the real-world lobbying landscape of Washington, is enough to get politicians to step in and smooth over CFIUS obstacles. This is one of the reasons why Satsuki is so confident in the face of Richard's repeated suppression.
If you're still not convinced, let's look at real history. In reality, several major Japanese trading companies (such as Mitsui & Co., Mitsubishi Corporation, and Itochu Corporation) have been investing heavily in Texas, the Gulf of Mexico, and later shale oil and gas basins in the United States for decades.
To avoid sensitive political scrutiny, they usually participate by purchasing partial equity in projects, establishing joint ventures, or acting as limited partners (LPs), exchanging funds for energy and profits. This is consistent with Satsuki's logic of avoiding the limelight to earn profits.
At this point, Satsuki has secured a "safe passage" in every sense of the word for her to return to Japan and acquire non-performing assets. All the preconditions for domestic acquisition have been met, and now she is just waiting for the right moment to begin serializing the "Domestic Asset Acquisition Chapter"!