Chapter 420: Like Mount Tai
"There is no hope left!" Klein cried out in pain, then collapsed onto the trading hall floor. The staff around him looked at him with sympathy, but everyone was going through tough times, so no one stepped forward to offer any comforting words. This kind of thing had become routine.
Klein asked a soul-searching question: "Who can come to our rescue now?"
The answer was no one. The stock market was always a high-risk gamble, and the risk was something investors had to bear. Since the day the exchange was established, all responsibility had been passed on, just like the warning on cigarette packaging about the health risks of smoking.
Of course, the collapse of the stock market would have a significant negative impact on the economy of the Austro-Hungarian Empire, but with the government taking active steps, some of the losses could still be reduced. If this were Germany, a country with strong government execution, there might still be a chance. But in the Austro-Hungarian Empire, forget about it. The country had always had an unstable fiscal situation, and its economy was marked by imbalance and protectionist tendencies, especially in Austria and Hungary.
Now, the real capitalists in Austria were trying every way to shift the crisis elsewhere, and neighboring Hungary was one of their targets. Similarly, the Hungarian aristocracy was eager to sell off grain quickly, hoping to dump their agricultural products. If you want to dump industrial goods on me, I'll dump agricultural products on you! Both sides had raised tariffs.
As for the central government, they could only watch helplessly. Even in normal times, their finances were tight, so there was no money to rescue the market. Now, even the banks were in trouble, with nowhere to borrow money.
Meanwhile, at the Hechingen Bank's Vienna branch…
"President Nakin, the only bank with any extra funds in this economic crisis is your bank. You can't just watch us die!"
"Mr. Cyrus, I'm truly sorry. Right now, the entire banking industry in Vienna is in turmoil. We're just barely keeping things running, making sure the accounts of our depositors are secure, so we're powerless at the moment."
"President Nakin, we've had a long relationship. My company is just facing a small liquidity problem. I don't need much, just 350,000 shields to get through the crisis."
"350,000 shields is no small sum, and it's not something I can just allocate. Mr. Cyrus, if I may give you some advice, you should sell your factories quickly at a low price. Your business is highly tied to the railway industry, and given the current market conditions, the longer you hold on to it, the more money you'll lose. Don't bother with orders; your clients probably can't even come up with the penalty fees."
Sighing, Cyrus replied, "Actually, I want to sell, but right now no one's willing to buy at a decent price."
"Well, then there's nothing to be done. Announce bankruptcy. It's better than holding on and having employees riot because they haven't been paid."
Cyrus was quite a capable person, and even amidst the storm, he could tell that Hechingen Bank was still in good standing.
In reality, it wasn't that hard to figure out, as long as you inquired around a bit. Other banks were laying off staff or collapsing, but Hechingen Bank stood firm, indicating they had ample funds and a healthy operation.
Hechingen Bank's employees didn't show any sign of worry. Among their peers, they stood out, indicating that the bank had no fears. This kind of confidence could only come from solid finances and healthy management.
Of course, Hechingen Bank's calmness came from their prior efforts. If you went back a few months, the situation would have been quite different. Back then, the bank had carefully reviewed its own problems, clearing out any potential risks. After all, Hechingen Bank was still a relatively new player among Europe's many banks and lacked experience in many areas.
The bank underwent internal restructuring, streamlining its staff and organizations, lowering storage interest rates, raising loan application thresholds, and selling off bad assets. This caused quite a stir at the time. Many clients switched to other banks and financial institutions, but when the economic crisis hit, they deeply regretted it, and Cyrus was one of them.
So, President Nakin was indifferent to Cyrus' request. Of course, even without this situation, he wouldn't have done any favors.
"Well, Mr. Cyrus, it's better to rely on yourself. Good luck!"
Cyrus still tried to argue, "…"
However, Nakin immediately turned to his assistant, "Andy, see him out."
After Cyrus was shown out, Andy said, "President, it seems our bank's business hasn't been doing too well recently either, and we don't know how long this crisis will last."
Nakin smiled, sipping his coffee, "Don't worry. It's just a market winter. Just because it's snowing doesn't mean people stay inside. The economy will still run, just not as hot as before. We just need to focus on doing our job. And, with the credit we've built up during this crisis, it's clear who clients will choose next. Perhaps, because our competitors will be eliminated, we'll find it easier to do business in the future."
"By the way, President, we've received a telegram from headquarters. They want all branches to lower deposit interest rates by another 1.2%."
Nakin leisurely replied, "Well, let's announce it tomorrow morning! With other banks and businesses crashing, there's no need to keep interest rates so high."
In fact, Hechingen Bank's deposit rates had already been lowered significantly after the last adjustment, so further lowering them by 1% would essentially make the interest for depositors negligible.
After all, with clients lost, businesses bankrupt, and workers unemployed… a chain of reactions had made the banking industry unprofitable, even causing losses. Reducing the interest rate was a normal move. Even though the interest rate had decreased, it was still better than losing everything. If they still had interest, they could at least be grateful.
In the evening.
Wiggins finished work and, as he walked out of the bank, he saw his old rival, employees from the Krus Bank, arguing with depositors in a troubled crowd.
Wiggins moved closer and carefully listened to the conversation:
"Everyone, don't panic. It's already after hours, and we have to close!"
"Bastard! We still haven't withdrawn our money, and you're already thinking about closing. Are you trying to make fools of us?"
"Exactly. If you don't let us take out our money today, we won't let you leave!"
"I heard the railway company went bankrupt, and now you can't recover your debts. The funding chain is broken, and you're trying to drag us into your bankruptcy with you?"
"Give us our deposits!"
"Refund the money!"
Watching this lively scene, Nakin clicked his tongue, "What a troublesome time!"
Hechingen Bank had a solid grasp of things, but because of the economic winter, people's motivation to save had decreased. Even Hechingen Bank was affected. Many depositors had withdrawn their funds, but this had little impact on the streamlined bank. A few months ago, Hechingen Bank had faced a similar situation, but back then, the economy was booming, and there were plenty of buyers. They actually made a profit. Now, with the entire industry dragged down, Hechingen Bank's depositors had decreased, but this situation was only temporary. After a while, everyone would realize who the real winner in the crisis was.
End of chapter
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