I received a phone call from the United States and immediately left the concert venue.

‘Why is the U.S. administration suddenly trying to save Bear Stearns?’

The news was that the U.S. government had decided to support Bear Stearns.

I immediately rushed to Dreamhigh Korea and called Han Kyungyeong.

“Hey, Muhyuk.”

“What the hell is going on?”

“I just heard the news too and called an emergency meeting.”

Originally, the U.S. government was supposed to abandon Bear Stearns.

Even if it didn't go bankrupt, management should have been pressured into selling it off at a bargain price.

“I still don't know exactly how they're planning to support it. But according to what I've heard, the Treasury Department's position is that Bear Stearns absolutely cannot be allowed to fail.”

“The Treasury and the Fed can't possibly be unaware that this is like pouring water into a bottomless bucket...”

Bear Stearns' problems were severe.

Trying to save it might mean losing the chance to save something else.

“They still haven't decided the exact method or timing. For now, the administration's position is simply that Bear Stearns must not collapse.”

“What about the Fed? Has the Fed said anything?”

“The Treasury wouldn't be discussing something like this without the Fed's approval. Oh, and apparently the Fed Chairman is holding a press conference soon.”

“Really? Keep me updated as soon as anything changes.”

“Will do. I have to start the meeting, so I'll hang up now.”

Han Kyungyeong hurriedly ended the call.

I searched my memory. I couldn't remember every detail of Bear Stearns' collapse.

As the subprime mortgage crisis spread rapidly, Bear Stearns suffered massive damage.

Most of its losses stemmed from leveraged investments in high-risk mortgages and related derivatives.

As the value of those assets plummeted, Bear Stearns found itself trapped in a liquidity crisis.

After that, until it was eventually acquired by JPMorgan Chase, the government never directly rescued it even once.

If the government had stepped in with emergency bailout funds, Bear Stearns might not have collapsed at all.

After organizing my thoughts, I called Manager Ma.

“Tell them to focus on movements in Washington. Not just politicians. Watch economists, bureaucrats, and academics as well.”

“Yes, sir. I'll relay the order immediately.”

This time, I had expected Bear Stearns to go bankrupt instead of being acquired by JPMorgan Chase.

Its bad assets had grown to at least twice the original scale.

And now they wanted to save it?

I couldn't even begin to guess what they were planning.

A day passed.

Frankly, Chairman Ben Bernanke's press conference contained nothing but textbook answers.

However, every word spoken by the Chairman of the Federal Reserve carried enormous weight in the financial markets.

After Bernanke's remarks, U.S. stock prices began rising again.

“There is no such risk. The system is safe...”

Bernanke's confident declaration made me laugh in disbelief.

“How are you going to deal with that later?”

Those words would eventually return to Bernanke like a boomerang.

* * *

JPMorgan Chase Chairman Jamie Dimon entered the room with a hardened expression.

Ben Bernanke welcomed him warmly.

“Welcome, Chairman Jamie.”

“...Good to see everyone.”

Jamie surveyed the faces gathered in the conference room.

Everyone present was responsible for creating and executing America's economic policy.

“Please, have a seat.”

Five people sat around the round table.

“How have things been at JPMorgan lately, Jamie?”

“Henry, don't you already know?”

Jamie's response to Treasury Secretary Henry Paulson was sharp.

“Haha. Why are you taking it so personally? It was merely a polite greeting.”

“A polite greeting? After the Treasury demanded our internal data? You call that a greeting?”

Jamie raised his voice and glared at Henry.

The relationship between the two men was poor.

No, it was terrible.

Before becoming Treasury Secretary, Henry Paulson had been Chairman of Goldman Sachs.

At President Bush's request, he had left Goldman Sachs and become the man overseeing America's economic policy.

Jamie had already disliked the fact that his longtime rival had become Treasury Secretary, and the recent request for internal documents only deepened his resentment.

“Chairman Jamie, let's save the personal feud for later. We didn't gather here to watch the two of you fight.”

The mediation from Chairman Allan Hubbard silenced both men.

Then Ben Bernanke spoke.

“Chairman Jamie, I understand that recent events have left you frustrated.”

“Ahem.”

Jamie cleared his throat.

“The reason we invited you here today is because we have a proposal.”

“What kind of proposal?”

“You know Bear Stearns has been facing a severe liquidity crisis.”

Jamie nodded with a troubled expression.

“Yes. It's causing us no end of headaches. What exactly happened over there? Bear Stearns refuses to provide clear answers.”

“We expect losses in the billions of dollars.”

“What?”

Jamie's voice rose.

“Billions?”

“That's the amount we expect to remain even after liquidating all of Bear Stearns' assets.”

Jamie let out a dry laugh.

Billions in losses.

Anyone on Wall Street could suffer enormous losses while investing.

But if billions remained even after liquidating the entire company...

Jamie stared directly at Bernanke.

“Chairman Bernanke, didn't you personally say just a few days ago that nothing like this would happen?”

“It was a temporary measure to prevent excessive panic in the financial markets. I hope you understand.”

“You've lost your mind. Do you honestly think that's acceptable? You know the impact your words have on the markets. This is fraud. Pure fraud.”

“I'll take full responsibility. We must overcome this crisis for the stability of the financial system.”

Bernanke calmly absorbed the criticism directed at him.

Eventually Jamie calmed himself and spoke.

“I understand your concerns. I also take the threat to the American financial system very seriously. But this still isn't right.”

“I apologize. Please understand.”

At Bernanke's apology, Jamie let out a deep sigh and nodded.

“So tell me the real purpose of this meeting. There's a reason you're revealing all of this.”

Bernanke hesitated slightly before speaking.

“Jamie, as you know, Bear Stearns is in an extremely unstable position. The market is already filled with rumors that the firm is going to collapse.”

Henry Paulson continued.

“The Fed and the Treasury are considering every possible option. But we desperately need cooperation from the private sector.”

Jamie looked at him seriously.

“Henry, be honest. What exactly are you asking? Is there something JPMorgan can do? We aren't exactly in an easy position ourselves.”

Henry nodded heavily.

“I know that. But...”

“I'll explain, Secretary.”

Bernanke stepped in, causing Paulson to fall silent and lean back in his chair.

His expression was heavy.

“Chairman Jamie, I'll be straightforward. The best scenario we can imagine is for another investment bank to acquire Bear Stearns.”

“...”

Bernanke carefully laid out his thoughts.

“Of course, we understand this isn't a simple matter. But we believe your bank is the only institution capable of handling it.”

Jamie had already suspected as much.

If they had gone to the trouble of summoning him personally at a time like this, it had to be related to Bear Stearns.

Otherwise, the impressive lineup gathered here made no sense.

But given that Bear Stearns' problems were even larger than expected, he couldn't agree so easily.

After a long sigh, he answered.

“Let's assume JPMorgan acquires Bear Stearns. That's an enormous risk. Even if I approve it, I'd still have to convince our shareholders.”

“That's true. But the Fed and Treasury are prepared to provide maximum support to ensure the deal succeeds.”

“Let me ask one question, Chairman.”

“Go ahead.”

Jamie glared at Henry Paulson.

“Why us? Why not Goldman Sachs, given Henry's close relationship with them?”

“My friend, if Goldman Sachs acquired Bear Stearns, wouldn't there be accusations of favoritism?”

“Favoritism? In taking over a dying Bear Stearns? That's a ridiculous excuse.”

The two men seemed ready to start arguing again, prompting Bernanke to intervene quickly.

“Goldman Sachs was indeed one of the candidates. But we ultimately selected JPMorgan.”

“Why? Let's hear why you're handing us a poisoned chalice.”

“The Secretary isn't wrong. There would be accusations of favoritism.”

The same answer only made Jamie growl.

“Favoritism? What favoritism?”

“The Federal Reserve is prepared to guarantee a $30 billion emergency loan for JPMorgan. The collateral would be the riskiest $30 billion worth of assets on Bear Stearns' balance sheet.”

Jamie's eyes lit up.

“You'll support us with a $30 billion loan secured by the worst toxic assets?”

“Yes. And we're prepared to offer it at extremely low interest rates.”

At the mention of low interest rates, Jamie swallowed.

They were offering cheap funding to facilitate the acquisition.

No matter how close Bear Stearns was to collapse, it still possessed tremendous value.

Even a dying tiger was worth something.

“We're also discussing several additional support measures.”

“Hmmm.”

Jamie's tone softened as he considered the proposal.

How could he not?

The offer was extraordinarily generous.

“Do you understand now why we called this favoritism, Chairman Jamie?”

“I understand perfectly. If Goldman Sachs had been selected as the preferred bidder, I would've been the first person protesting.”

“So what do you think of our proposal?”

“I can't answer immediately. I'll review it carefully and get back to you.”

“If JPMorgan refuses, there may be no institution left capable of acquiring Bear Stearns. In that case, bankruptcy becomes the only option. And if Bear Stearns goes bankrupt... even I can't predict the consequences.”

Thus ended the first meeting regarding the sale of Bear Stearns.

But whether that meeting would save the American financial system—or push Wall Street into a pit from which it could never escape—nobody knew.

* * *

“Jamie Dimon has been meeting frequently with Ben Bernanke?”

“Yes, sir. Three meetings this month alone.”

“As expected.”

Rumors of government support had already begun stabilizing the financial system.

And behind the scenes, JPMorgan Chase was negotiating an acquisition rather than a direct bailout.

“Let's leak this to the press.”

I had no intention of letting events unfold exactly as they wanted.

I immediately pulled out my smartphone and called Murdoch in the United States.

“Charlie! It's been a long time.”

“Yes, Chairman Murdoch. I trust you've been well?”

“I haven't been this happy in years.”

After exchanging brief greetings, I got straight to the point.

“I need a story published.”

“A story?”

“Yes.”

I smiled faintly as one corner of my mouth rose.

“Run it as a Wall Street Journal special feature.”

“Not just one article.”

“A series.”