Of course, this doesn't mean that these oil companies will immediately default once crude oil prices reach the "default window."
After all, if they default, they will be required to pay 20% of the contract value.
This means that in addition to the crude oil they have already delivered to the BFT Fund since March, they will still have to pay 20% of the $60 billion contract value in liquidated damages.
These oil companies must weigh whether oil prices will continue to rise, remain within the "default window," or whether this is just a temporary surge that will soon fall back.
If the oil price stays within the "default window" for a short period of time, then they can accept a certain loss and continue to supply.
Therefore, it will take at least a month to determine whether these oil companies will default, based on a comprehensive assessment of factors including crude oil price trends.
Another possibility is that they will negotiate with the BFT Fund, either raising the sale price or reducing the compensation. The BFT Fund's initial response will determine their ultimate decision.
The BFT Fund's initial £25 billion was converted into approximately $52.5 billion.
Of this, $30 billion was deposited as margin for large oil contracts in designated banks designated by the oil companies, while the remaining funds were invested in gold futures and spot trading.
The BFT Fund has already generated nearly $10 billion in profits from the gold price rally alone. If it can also collect 20% of the liquidated damages from these large oil contracts, the fund's profits would reach over $22 billion, a return exceeding 30%.
These funds will then be used to "bottom-fish" after the full-blown subprime mortgage crisis, ensuring the BFT Fund's eventual repayment of £50 billion, plus associated interest, to the British government.
However, Baron's ambitions extend beyond this. The BFT Fund will not simply be used for investment profits and eventual repayment to the British government; it will also serve as a vehicle for his future investment portfolio, and he will continue to inject capital into it.
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I believe the London government's response to the subprime mortgage crisis has been inadequate. London is one of the world's financial centers, and the crisis has deeply affected the banking industry. We need to abandon some of our liberal practices and do our best to help the banks through this difficult time,"
said Joe Harriman, dressed in an intellectual manner, on television.
"Of course, this isn't about backing up the banks, but about preventing ordinary people from being overly affected. After all, once panic spreads, the devastation is enormous. I believe the bank boards that made mistakes should bear the consequences of those mistakes."
This year is an election year for the London government, with Greater London's elections taking place in late April or early May.
More specifically, this year is an election year for local councils across England, including the Mayor and City Council of Greater London, as well as the district councils for its 33 boroughs.
Unlike the prime ministerial election, the London mayoral election is a one-candidate system, and campaigning began a year ago. Currently, the top two candidates are the Labour Party candidate and current London Mayor Ken Livingstone, who has served two terms as London Mayor. If he wins this year, it will be his third term.
Another person Barron knows well is the Conservative candidate, Johnson. Essentially, the next London mayor will be decided between Livingstone and Johnson.
Interestingly, the London mayoral election isn't limited to British residents of London. The London mayoral election rules state that anyone aged 18 or over who is a UK, Commonwealth, or EU citizen living in London can apply to run for mayor.
This means that even if you're a citizen of another EU country and can prove long-term residency in London, you can still participate in the London mayoral election and vote for a candidate. For this reason, the official website for the London Mayoral campaign offers services in 17 languages, including both traditional and simplified Chinese.
Of the two candidates, Barron will naturally support Johnson. This is not only because he knows that Johnson won the election and was elected Mayor of London in his previous life,
but also because Johnson is considered one of Barron's "friends." Meanwhile, the current Mayor of London, Livingstone, known for his eccentricity and tough stance, has a more casual relationship with Barron.
Remember, Livingstone was opposed to Barron during the acquisition of the London Stock Exchange.
After Cameron became Conservative leader in 2005, Johnson served as Shadow Education Secretary. However, he resigned from that position in July of last year to prepare for his candidacy for London Mayor, and his candidacy was officially confirmed by the Conservative Party in September.
Furthermore, Jo Harriman will also be running in this local council election.
In the previous election, she was elected to the Greater London Borough of Islington Council, and this time, she will run for the London City Council.
Therefore, Jo Harriman has been very active during this period.
Being under 28 and a minority woman, she is a key target for the Conservative Party.
Therefore, Jo Harriman is a surefire winner this time.
Of course, she will also undoubtedly have Barron's strong support...
Judging by the current situation, the Conservatives are coming on strong this time. Their support in the local councils is very close to that of the ruling Labour Party, making an upset possible.
If Labour loses this local election, they will be in a very vulnerable position in the parliamentary elections two years later.
The subprime mortgage crisis has significantly impacted the American banking industry, and the European banking industry has also been affected.
As one of the world's financial centers, the impact of the financial crisis on the banking industry and the subsequent policies to address it are hot topics in the London mayoral election.
Major British banks, including HSBC, Royal Bank of Scotland, and Barclays, have suffered significant losses from the subprime mortgage crisis, leading to significant declines in their share prices compared to the same period last year.
Even Standard Chartered, which had no exposure to subprime mortgage-related debt and suffered minimal losses, was affected, with its share price down over 15% from its peak last year…
This was already the best performance among the major British banks.