The Conglomerate Family Became A Villain [EN]: Chapter 76

LA’s Long Day (5)

Before the 20th century, or even the early 20th century, bank loans were largely reserved for the wealthy aristocracy and capitalists. Even middle-class individuals who owned both a house and a car often faced nearly insurmountable barriers when trying to secure bank loans.

In the United States, one man changed this financial landscape: Amadeo Giannini, often hailed as the father of modern finance.

He was the first banker to conceive of and offer modernized mortgage and auto loan products to the common person.

‘That’s why Giannini earned the rare, warm-hearted descriptor for a financier.’

Jeong Hyun-woo knew about Amadeo Giannini because his name and achievements were frequently mentioned when studying American history.

Amadeo Giannini not only founded the massive Bank of America but was also renowned as a financial revolutionary and philanthropist.

‘During the San Francisco earthquake, he started offering small loans as quickly as possible from a makeshift bank made of two overturned barrels.’

When other banks couldn’t even open their doors due to the San Francisco earthquake, he began providing loan services to help those affected rebuild their lives. He also offered lodging and groceries to those who had lost their homes in the earthquake.

In short, he not only opened finance to the common people but also took the lead in caring for them during times of hardship.

‘Of course, that doesn’t mean I have an obligation to accept Bank of America’s proposal.’

Amadeo Giannini being a good person was separate from doing business with Bank of America.

“The chairman’s granddaughter. Does that mean the chairman of Bank of America is aware of this negotiation?”

Lyra Marine nodded.

“Of course. This deal requires more than $1 billion in cash.”

$1 billion.

As emphasized several times, this was by no means a small amount of money.

Based on the 1984 South Korean economy, it was enough to acquire one of the top five *chaebol* [large South Korean business conglomerates] groups entirely. In less developed countries, it was a vast sum that could shake the country’s economy itself.

“I understand. Now that I’ve confirmed Ms. Marine’s identity, shall we return to the matter at hand?”

Lyra Marine responded with a firm expression.

“Let’s do that.”

Before entering into full-scale negotiations, Jeong Hyun-woo summarized the previous discussions.

“First, Bank of America’s acquisition offer is rejected. I won’t explain the reasons separately.”

He had already stated that he had no intention of selling from the start.

“Understood.”

As Lyra Marine and Jeong Hyun-woo were about to move on to collaboration, Sarah slightly raised her right hand.

“Ms. Marine, may we take a short break?”

Lyra Marine paused at her suggestion.

“A break?”

“Wouldn’t it be good to take a break to refresh the atmosphere and organize our thoughts?”

“Hmm, then let’s do that.”

Sarah got up from her seat as soon as Lyra Marine agreed. Then, she turned to Jeong Hyun-woo and said,

“Charlie, let’s talk for a moment.”

Jeong Hyun-woo followed her with a sheepish expression at her call.

‘Am I missing something?’

He moved with Sarah to the southern end of the terrace. The two of them stood there and began to talk.

“Charlie, collaborating with Bank of America isn’t something we can decide on our own.”

Jeong Hyun-woo stroked his chin with his right hand at her point.

“Are you saying we need to hear from our partner, JP Morgan?”

“JP Morgan is our partner and the subject of JP Service.”

“But we own the service patents and the system. And didn’t we develop most of JP Service ourselves?”

Jeong Hyun-woo believed that since he held the patents related to JP Service and had directly developed it, there would be no major issues even if he provided similar services to other banks.

‘The reason I minimized the contract fee with JP Morgan was to secure ownership of the system. Moreover, if I back down here, all the groundwork becomes meaningless.’

He wanted to push through with this collaboration no matter what.

However, Sarah’s thoughts were different.

“Charlie, do you think JP Morgan would think the same way?”

JP Service was a powerful weapon for JP Securities. There was no way JP Morgan would allow Bank of America to have the same service as JP Service.

“Of course not.”

“If our deal with JP Morgan falls through, we can’t guarantee the future of Victoria Corporation.”

Jeong Hyun-woo said with emphasis,

“If we give up this deal because of JP Morgan’s threats, we won’t be able to negotiate with other banks in the future. And JP Morgan can’t abandon us. Unless they stop JP Service.”

Sarah narrowed her brows.

“It’s not something you can say so definitively. JP Morgan might discontinue JP Service.”

Jeong Hyun-woo turned his gaze to the sea.

“Sarah, do you think JP Morgan can discontinue JP Service, which is used by over a million customers, just because they’re upset with us? And even if they do, their rival, Bank of America, will soon start a similar service, so they would be at a great loss if they made such a decision.”

Sarah understood most of what Jeong Hyun-woo was saying. But there was still something bothering her.

“I agree that JP Morgan can’t discontinue JP Service. But they will try to block us in some way.”

Jeong Hyun-woo said with his arms crossed,

“Are you saying they might wage war against us?”

Sarah nodded with a dark expression.

“I’m sorry. I should have rejected the meeting with Bank of America first.”

She had somewhat anticipated what kind of restrictions Bank of America might impose. However, she had agreed to this meeting in case there might be an unexpected proposal.

“That’s not true.”

“Are you thinking of going to war with JP Morgan?”

“We didn’t create this system just looking at JP Morgan, did we? Then isn’t this a war we have to fight someday?”

Sarah’s face hardened.

“Charlie, it’s impossible. They will use any means necessary.”

If a war breaks out, there’s no chance of winning.

Jeong Hyun-woo also knew that this fight would be difficult.

‘Because it’s the famous JP Morgan.’

If Bank of America was the angel of the financial world, JP Morgan was the devil. They sought to dominate the American economy through monopolies and oligopolies and had been hit with the hammer of antitrust laws, resulting in the company being divided.

Jeong Hyun-woo said as if he knew their methods,

“JP Morgan will attack us in various ways. They’ll hire lawyers and file numerous lawsuits for various reasons.”

“That’s not all. They’ll lobby to get the government or politicians to attack us.”

It was an old tactic for American companies to use politicians to attack rival companies. Sarah knew their methods well because she was a member of a *chaebol* family, albeit from a distant branch.

“That’s a bit troublesome.”

Sarah raised her right index finger.

“And, they’ll try to poach our company’s employees.”

Instantly, a furrow appeared between Jeong Hyun-woo’s brows.

“Are you saying they’ll poach our employees to create a company like Victoria Corporation?”

“JP Morgan can definitely do that.”

It wasn’t that JP Morgan didn’t have IT technology. Eric Vogel alone was an excellent IT engineer. If JP Morgan’s engineers and the developers who left Victoria Corporation joined forces, they could create a program like JP Service in a short period.

‘This is a bit dangerous.’

Of course, it wasn’t that JP Morgan had nothing to lose. He had designed most of the system, and he was the only one who knew the various features that would be provided in the future. In other words, if JP Morgan copied Victoria Corporation and JP Service, they would only be able to replicate a part of it.

“Sarah, if they poach our company’s employees and replicate JP Service, we can sue them.”

“Charlie, even if we win the legal battle, we’ll lose a lot of time. And……”

Jeong Hyun-woo knew what she was about to say. He uttered the words she had swallowed.

“If we lose the lawsuit, it’s really over.”

Sarah thought it was a fight where neither side could expect a complete victory.

“We have the patent rights, but from an ethical standpoint, our actions aren’t entirely right.”

American trials weren’t about a judge making a ruling based solely on legal judgment. In American courts, you could never win a trial if you couldn’t move the hearts of the jurors.

“Are you saying the jurors might think we betrayed them first?”

Sarah slowly nodded at his question.

“That’s right, that’s what I’m most concerned about.”

Jeong Hyun-woo sighed briefly.

“Hoo…… then shall we offer JP Morgan a choice?”

“A choice?”

“Instead of us declaring war, we let them choose.”

Sarah knew what he wanted.

‘He wants to shift the responsibility for the war to JP Morgan.’

She realized that he was even considering a legal battle.

“Charlie, wouldn’t that be too risky?”

Sarah wanted to reject Bank of America’s offer if possible.

Jeong Hyun-woo leaned against the railing and said,

“Sarah, do you know that there are times when the public interest takes precedence over corporate rights or interests?”

Sarah tilted her head at the new concept.

“What do you mean? The public interest takes precedence?”

Jeong Hyun-woo raised his right hand and said,

“For example, safety belts.”

“Safety belts…….”

“Car safety belts.”

Sarah exclaimed as if sighing.

“Ah…….”

“Imagine someone monopolizing car safety belts and the rights to them. What if other companies’ cars couldn’t have safety belts and only cars from companies that had their permission could make safety belts?”

“For the public right of safety, the rights of the company that made the safety belts can be restricted?”

Jeong Hyun-woo nodded.

“Of course, no company would do that. Because in modern society, there is no company that doesn’t care about public opinion.”

He had experienced a world disrupted by COVID-19. At the time, the pharmaceutical companies that developed the COVID vaccine made considerable profits, but they couldn’t raise the price of the vaccine to the point of profiteering. The reason was that the vaccine was a necessity for people.

‘It was also a vaccine made with government support, but if they had tried to profit excessively from the vaccine, they would have been hit hard by the public.’

The pharmaceutical companies raised the price of the COVID vaccine only after the momentum of COVID-19 had subsided.

“Still, safety belts are literally for safety. I think JP Service is different.”

She thought that JP Service was not for the public interest, unlike safety belts.

“Sarah, is it really that different? JP Service is a system like a breakwater that prevents the monopoly of information.”

“A breakwater?”

“The monopoly of information is unfair competition. What if JP Service guarantees freedom of information and fairness of competition?”

The most important value in America was freedom, not equality. If JP Morgan wanted to restrict the freedom of investors, public opinion was likely to turn against them.

“Providing people with freedom of information?”

Jeong Hyun-woo nodded greatly.

“That one word will protect us.”

If they moved civic groups or politicians based on this argument, they could attack JP Morgan in reverse.

‘JP Morgan has as many enemies as allies.’

The famous John F. Kennedy also tried to deal with JP Morgan and their US Steel.

“It makes some sense, but war is still not a good thing.”

Jeong Hyun-woo took his hand off the railing and said,

“That’s why we’re giving them a choice.”

“To avoid war?”

“If we present them with a slightly favorable choice, I think we can avoid war.”

He was saying that he wouldn’t start off by antagonizing JP Morgan.

“If it’s such a choice, I’m in favor.”

Sarah was in a position to concede to JP Morgan to some extent if it meant avoiding war.

“So what’s the choice you’re giving JP Morgan?”

“That is…….”

Jeong Hyun-woo answered in a low voice so that no one around could hear.

Sarah simply nodded after hearing his words.

* * *

Neil Hamilton, head of JP Morgan’s investment banking division, frowned at the report from main manager Louis Nolan.

“What are you talking about?”

Louis Nolan’s voice, answering his question, was somewhat agitated.

“As it is, Bank of America has intervened. They also want to be supplied with the same service as JP Service.”

Neil Hamilton wasn’t asking for a situation report. He was asking how this could have happened. He slammed his desk and shouted,

“Louis! Report properly! Tell me why this happened!”

Louis Nolan’s voice grew thinner at his shout.

“I, I’m sorry. I checked the contract with Victoria Corporation, and there was no exclusive supply clause.”

Neil Hamilton raised his eyebrows.

“So, JP Service isn’t a service that exclusively supplies to us?”

Louis Nolan nodded and replied,

“That’s right.”

Neil Hamilton asked him with a look that seemed to devour him,

“How could this happen?”

“That’s…….”

Louis Nolan couldn’t answer properly.

It was his mistake not to include an exclusive supply clause.

Neil Hamilton’s voice grew louder once again.

“How did you write the contract! Where were you looking!”

All Louis Nolan could do was lower his head.

“I, I’m sorry. I was so focused on price negotiations that I missed other parts.”

He had focused on reducing the contract size and hadn’t accurately examined parts such as exclusive supply.

‘I never thought this would happen.’

When he signed the contract with Victoria Corporation, he hadn’t anticipated the JP Service craze like this. He had signed the contract with the feeling of adding just one additional service.

If he had anticipated this kind of success, they would have invested a large amount in development and specified exclusive supply rights and patent rights.

Neil Hamilton frowned deeply and asked,

“So. Is there no way to stop it?”

Louis Nolan carefully raised his head and replied,

“Ms. Hilton has made two proposals.”

Neil Hamilton’s voice lowered.

“Two proposals?”

“Unlike Mr. Jeong, Ms. Hilton was a little easier to talk to.”

“So what are the proposals?”

“The first is a proposal to acquire a stake in Victoria Corporation.”

If JP Morgan acquired a portion of Victoria Corporation’s shares, they could prevent the contract with Bank of America.

The problem in this case was the price.

“If it’s a stake acquisition, how much are they asking for?”

Neil Hamilton’s thought was that there was no such thing as a free lunch.

“Th, that’s, a bit difficult.”

Since it was to prevent a contract with Bank of America, it wouldn’t be cheaper than the market price. Moreover, Jeong Hyun-woo had told Neil Hamilton that he wouldn’t sell his shares. If he said he would sell his shares, it wouldn’t be at a normal price.

“Louis, do you want to be fired? Why can’t you talk about the price?”

Louis Nolan’s eyes widened at Neil Hamilton’s threat, and he replied,

“According to Ms. Hilton’s proposal, it’s $1 billion for a 10% stake acquisition.”

“$1 billion for 10%?”

The amount Neil Hamilton had initially offered Jeong Hyun-woo was $100 million.

“Hahahahahahahahahahaha!”

He laughed loudly. But Louis Nolan couldn’t laugh.

‘Damn it……. I’m going to get fired from the company.’

Louis Nolan knew he was facing the worst situation.

‘Why did Ms. Hilton call me?’

The chief of JP Service at JP Morgan was Sean Luke, not him. If she had called Sean Luke instead of him, it would have been Sean Luke, not him, who would have been scolded by Neil Hamilton.

“Hahahahahahahahahahaha…….”

Neil Hamilton held his stomach and laughed. Louis Nolan had never seen him laugh like this before.

‘Maybe after the laughter, there will be a scolding from hell.’

He thought it was a very obvious development.

Soon, Neil Hamilton’s laughter stopped.

“Haha, not $1 billion for the entire company, but $1 billion for a 10% stake?”

Louis Nolan replied in a barely audible voice,

“That’s right.”

“Great! Very great!”

What was so great about it?

Louis Nolan carefully raised his head.

“Boss?”

At that moment, Neil Hamilton stood up from his seat.

“It’s a great failure!”

Louis Nolan unknowingly bent his knees at his shout.

“Bo, Boss.”

Seeing him crouching, Neil Hamilton loosened his tie.

“So what’s the second proposal?”

Louis Nolan looked at him and replied,

“They’re offering to give us 30% of the profits from the Bank of America deal.”

This was what Jeong Hyun-woo wanted. He wanted to contract with Bank of America even if it meant giving up a significant portion of the profits to JP Morgan.

“So you’re saying they’ll give us money, so allow Bank of America to create the same service as us?”

Louis Nolan nodded.

“I think so.”

He thought there was no other choice but this.

‘Because the former doesn’t make sense.’

$1 billion for 10% meant $10 billion for 100%.

He could never accept Victoria Corporation’s market capitalization of $10 billion.

“What do you think?”

Louis Nolan carefully replied to Neil Hamilton’s question,

“Since we couldn’t secure exclusive supply rights, I think we have no choice but to move on to receiving royalties.”

He was sure that Neil Hamilton would choose the latter.

‘We have no choice.’

Jeong Hyun-woo had presented the worst choice and the better choice, inducing them to choose the better one.

It was a strategy that anyone could easily see through, but JP Morgan had no other choice.

The next moment, Neil Hamilton’s voice echoed loudly through the office.

“No way!”

He could not allow Bank of America to provide the same services as them under any circumstances.