novelslam Chapter 225 Idle Chat at Tingsongxuan
Chapter 225 Idle Chat at Tingsongxuan
(Two chapters released today too~)
Late February 1990.
Nikkei Average: 30,120 points
The freezing rain of February, mixed with tiny ice crystals, washed over the streets of Azabu-Juban.
A black Nissan Century sedan rolled over the puddles of asphalt, its tires kicking up mud with a dull thud. The old-fashioned gas streetlights cast dim, yellowish light in the rain and mist, the shadows swirling and twisting with the water dripping from the car windows.
Inside the train carriage, Fuji Bank Managing Director Tanimoto leaned back in his leather seat. He reached out and loosened the silk tie around his neck, which had become somewhat tight.
The rain outside the car window showed no signs of letting up. Through the privacy-protected glass, Tanimoto looked at the hurried pedestrians with solemn expressions on both sides of the street, as well as a few real estate agencies that looked somewhat desolate in the winter rain.
In late December of last year, Bank of Japan Governor Yasushi Mieno announced an increase in the official discount rate. For nearly two months afterward, the stock market index resembled a rusty, dull saw, scraping downwards by 200 or 300 points with a sickening grinding sound.
The cost of using funds is gradually rising in the interbank lending market. Tanimoto is well aware that the stress test reports from Fuji Bank's credit department in recent weeks have been appalling. The net value of collateral held by large real estate developers and construction companies in the Kanto region, who heavily rely on bridge loans to stay afloat, is shrinking at a visible rate.
The car smoothly drove into a private driveway and stopped in front of a heavy, black cast iron gate.
"The Club".
The butler opened a huge black umbrella and pulled open the car door.
Tanimoto stepped out of the car, his leather shoes landing on the dry stone slabs of the porch. He handed his slightly chilly coat to a waiter who came to greet him and entered the hall.
The cold wind and rain, along with the noise of traffic outside, were completely shut out the moment the heavy double doors closed.
Tanimoto climbed the brass staircase covered with Persian handmade wool carpets.
He stopped in front of a camphor tree gate with a wooden sign that read "Tingsongxuan".
The waiter silently opened the wooden door.
The room was warm and cozy. In the corner, a brass brazier burned with smokeless silver charcoal, dark red embers flickering faintly in the ashes, radiating a steady and continuous heat.
Inside the lounge, more than a dozen financial giants from various industries were already seated.
President Kuroda of Daitoa Shoji was lounging in a single sofa, holding an ornate crystal glass. Spherical ice cubes floated slowly in the amber-colored whiskey. Sitting opposite him was President Otsuka of Otsuka Heavy Industries, the leading heavy machinery manufacturer in the Kanto region.
"Brother Tanimoto, this way." President Kuroda raised his glass, gesturing slightly.
Tanimoto walked over and sat down on the empty leather sofa. The waiter quickly brought over a glass of Yamazaki vintage whisky with ice.
"The snow outside is really heavy." Tanimoto picked up his glass, feeling the cool touch of the crystal glass on his fingertips. "Those guys in the credit department have been working overtime almost every day for the past two months to reassess the net value of the collateral. As soon as the Bank of Japan raised interest rates, the market continued to decline, and the risk of bad debts from our highly leveraged clients has all surfaced."
President Kuroda took a sip of whiskey, a slight smile of relief playing on his lips.
"The risk is indeed terrifyingly high." Kuroda's gaze fell on an evening newspaper on the coffee table. "The president of Matsuura Construction, Matsuura, jumped from the 47th floor of the Keio Plaza Hotel with a few unlucky guys half a month ago. The official conclusion is that he embezzled public funds and was deeply involved in loan sharking."
President Otsuka gave a soft hum, his rough fingers toying with a solid gold lighter.
"That nouveau riche from Kansai, Matsuura, has only himself to blame. His debt ratio has ballooned to 600%, and he doesn't even have enough readily available cash. Once the market starts its slow, steady decline and banks demand margin calls, what will he use to fill that hole?"
Otsuka threw the lighter on the table with a dull thud.
"In the real economy, the biggest mistake is putting all your cash flow into book valuations. If you don't know how to control leverage, you'll be driven to the rooftop sooner or later."
Managing Director Tanimoto took a sip of his drink; the spicy liquid slid down his throat, dispelling the lingering chill.
"Speaking of which... those of us sitting in this room are pretty lucky." Tanimoto swirled the crystal glass in his hand, the ice ball striking the glass with a soft sound. "A few months ago, Mr. Shuichi was sitting in this very spot, and casually remarked, 'The wind is about to change direction'..."
He paused, his gaze sweeping over the people present, his tone revealing a deep sense of admiration.
"Luckily, I listened to their advice. The day after I got back, I had the risk control department cut off the credit lines to those high-risk real estate developers."
President Kuroda nodded in agreement. He raised the crystal glass, watching the light reflecting off the ice puck.
"Yes. I had my subordinates sell off all those marginal plots of land at a discount that very day. At the time, several directors in the company even scolded me for being wasteful..." Kuroda took a sip of whiskey, a hint of relief curving his lips. "Now? Those guys are so scared by the news of people jumping off buildings in the newspapers that they don't even dare to breathe loudly."
"Who says otherwise?" President Otsuka chuckled, picking up the solid gold lighter again and toying with it in his hand. "If we had been greedy for those paper profits back then and continued to hold onto those rotten land plots and highly leveraged projects, now, facing the Bank of Japan's interest rate hike and this continuous decline of nearly four thousand points, we would probably be forced, like Matsuura, to borrow high-interest bridge loans to cover our margin calls."
"Look at all those small and medium-sized trading companies outside, they're all suffering. But we have plenty of cash on our books." Kuroda lightly clinked his glass against Tanimoto's.
"bite."
"This 'Tingsongxuan' is truly the most sturdy air-raid shelter in all of Tokyo."
President Otsuka also raised his glass, and the three exchanged a knowing glance.
The power of the Saionji family is undeniable. Countless crucial predictions, both large and small, have already established their unparalleled authority within The Club. Now, even if the Saionji family asked them to sell their entire company, they would likely comply.
At that moment, the very faint sound of leather shoes stepping on the wooden floor came from the corridor.
The heavy camphor wood door was silently pushed to both sides by the butler, Fujita.
Shuichi Saionji stepped into the room.
Today he wore a minimalist, dark gray bespoke suit with a neatly trimmed collar. His Windsor knot was tied with impeccable precision. His steps were steady and composed, and his deep gaze swept across the room, taking in the state of everyone present.
The tycoons who had been talking in hushed tones inside the room stopped all their movements in unison the moment they saw Xiu Yi appear.
President Kuroda placed the crystal wine glass gently on the rosewood table.
Managing Director Tanimoto and President Otsuka quickly pulled their legs together.
Everyone stood up from the soft leather sofa, their backs straight, their hands hanging naturally at their sides, and bowed slightly in the direction from which Xiu Yi was walking.
"Mr. Shuichi."
President Kuroda spoke first. This trading tycoon, who had been navigating the business world for decades, spoke with an extremely clear tone of respect and a subtle gratitude.
"A few days ago, thanks to the guidance of the Saionji Group on business direction, our company was able to adjust its asset structure in time and avoid the recent continuous decline. We at Daitoa Corporation will always remember this kindness."
Managing Director Tanimoto also bowed his head slightly.
"It was thanks to your inspiration that Fuji Bank's risk control department was able to avoid default risks on several high-risk loans in advance. If the Saionji family needs our assistance in the future, our bank will do its utmost to provide the highest level of funding."
Although the president of Otsuka Heavy Industries did not use elaborate pleasantries, his straight back and respectful posture conveyed his gratitude and trust.
Behind them, more than a dozen other executives of conglomerates and presidents of trading companies in the lounge also chimed in.
"Yes, thanks to Mr. Shuichi's reminder..."
"The Saionji family's vision is truly admirable..."
Xiu stopped in his tracks.
He looked at these financial tycoons who wielded considerable influence in their respective fields, a gentle and impeccable smile on his face.
He raised his right hand and pressed his palm down slightly.
"You're all too kind."
Shuichi's tone was calm, with a soothing and profound quality.
"We are all in Tokyo Bay, weathering the storm together. On this stormy sea, it is our duty as friends to remind and help each other."
He walked towards the main armchair.
"Please don't stand. Please sit down."
The tycoons then sat down again.
Shuichi sat down in the main seat, his hands clasped together and casually placed on his knees.
The waiter pushed a cart covered with pure white linen and quietly walked to the coffee table.
A few leaves of top-grade Darjeeling black tea were picked up with silver tea tongs and placed into a warm bone china teapot. Boiling spring water was poured in, and the rich aroma of muscat grapes, along with the white steam, slowly spread throughout the Listening Pine Pavilion.
The waiter placed a bone china teacup filled with black tea steadily on the sandalwood tray in front of Shuichi. Then, he took two steps back and disappeared into the shadows behind the shoji door.
Shuichi extended his right hand, gently pinching the cup handle with his index and middle fingers.
He picked up his teacup and blew on the rising steam from the surface of the tea.
The amber-colored tea rippled very slightly in the cup.
"The snow and wind outside have been really heavy lately."
Shuichi glanced around at everyone, his tone extremely relaxed, as if he were talking about the weather outside.
"Every day when I open the newspaper, it's full of news that keeps me on edge. Everyone's already stretched to the limit after dealing with those tedious reports at the office all day."
He brought the teacup to his lips.
"We're gathered here tonight purely to strengthen our friendships. We won't discuss business or look at the stock market."
"How about just treating it as casual conversation between friends?"