"Did you come up with this yourself?"
McKay scrutinized Leo. He didn't recall Leo having any background in finance, and such a sophisticated tax-avoidance system was not something an individual could design alone.
"Mr. Chairman, to be precise, this isn't just a proposal. This complex system has already been running for quite some time," Leo replied.
"Running?" McKay straightened his posture, asking solemnly:
"How effective has it been?"
"Very effective. In fact, quite a number of American tycoons are already using it. Their feedback has been unanimous: the fees are lower than Switzerland, and the results are better."
Leo answered with confidence.
"If what you've written here is true, then it's far superior to Switzerland. After all, how could little Switzerland compete with a global-scale tax haven?"
McKay kept flipping through the document, then looked at Leo again:
"Bring me the professionals who actually manage this system. I need to see hard data. You're too slick—I have to guard against you trying to fool me."
Soon, Edward arrived. Faced with McKay's highly technical and pointed questions, Edward, with his razor-sharp intellect and mastery of every detail, answered flawlessly.
When the questioning was over, McKay gave Leo a long, deep look. He had assumed Leo's claim of an "operating system" was just a minor trick, an exaggeration. But this was a fully developed global operation.
"How did I not think of this? The far-reaching companies and banks of the old British Empire are indeed perfect for building a worldwide tax-avoidance network."
As the leader of the world's currency, McKay knew his real duty was to safeguard the wealth of the rich—after all, it was they who had put him in his position. Maintaining the global economy wasn't his job.
There were two main ways to protect wealth. First, by generating new sources of profit—an area in which he excelled, as America was actively attracting global capital. But with great fortunes came higher taxes, and governments flush with revenue were eager to impose stricter controls. Not everyone welcomed that.
So, beyond "opening new sources," the other crucial task was "controlling the outflow."
Europe's old aristocrats and capitalists had long relied on Switzerland as the world's tax haven. But times had changed. For the tens of thousands of American tycoons, Switzerland was far too small—even Europeans now found it overcrowded.
Now, Leo's plan to turn Britain into a global-scale tax haven was full of promise. If successful, McKay believed he could become the most unforgettable Fed Chairman in the eyes of the wealthy, bringing boundless benefits to himself and his family.
Looking at Leo again, McKay found him increasingly agreeable. This young man certainly had valuable ideas.
At that moment, McKay's secretary approached and whispered:
"Mr. Chairman, John Stillman of New York requests to speak with you."
McKay, shrewd as ever, recalled that Stillman had sought his opinion before moving against Leo. He had neither supported nor opposed him, knowing that his silence was enough for Stillman to infer his stance.
Now, Stillman was calling because he knew Leo was with him.
But McKay had made up his mind. He didn't reply quietly to the secretary; instead, he said aloud, clearly and courteously:
"Please tell John I'm busy at the moment."
Between Citibank and the interests of all America's wealthy, McKay's choice was obvious. His refusal was a signal. Whether John backed off or not was between him and Leo. As Fed Chairman, McKay looked after the many, not the few.
Having completed his mission in Florida, Leo wasted no time soaking up the sun. He boarded a night flight back to Washington. On the plane, Edward couldn't help but say:
"Boss, don't you think it's a pity to share this system? We're losing hundreds of millions every year because of it."
Leo shook his head:
"This isn't something you can keep hidden. The rich don't want their hard-earned money swallowed up by taxes—they'll always look for havens. And with Britain's dire economy, it won't be long before the two sides find each other.
Compared to short-term profits of a few hundred million, I value relationships more. Besides, it's entirely possible that we'll earn money and favors at the same time.
Think about it, Edward—how many people in America have the ability to build a system like this?"
Edward shook his head.
"Exactly, very few. Now, if you were a wealthy man who couldn't build such a channel, would you choose a risky, untested one, or one already proven to work?"
Edward suddenly understood. Yes, no one would risk their fortune on an unproven path when a mature one was available.
"And what's the first thing those who want to build their own system need to do?" Leo asked.
"Learn?" Edward guessed.
"Correct. And learning requires tuition. The fewer students I accept, the higher the tuition. And they'll owe me favors for teaching them.
So you see, Edward, with this maneuver, I've calmed Chairman McKay's anger, earned the goodwill of other tycoons, and in the end, the money I make will be far greater than the few billions we could've skimmed quietly—because McKay himself is now advertising our system."
Leo leaned back, closing his eyes, leaving Edward utterly stunned by his masterstroke.
At the poolside of the Valentino Hot Springs Hotel in Washington, a crowd of prominent figures gathered to witness the spectacle. Normally, such people would never gawk at drama, but this time was different—the protagonists were no ordinary men.
On one side stood the renowned young tycoon shaking America—Leo Valentino, just back from Florida.
On the other, Carson Merlin, a major shareholder of American Realty Group and once hailed as the king of Western real estate.
The two quarreled fiercely. The older Carson was no match for the sharp-tongued, younger Leo. After being refuted again and again, he finally snapped:
"Listen! Back then, Merlin Group joined American Realty to expand nationwide. And now you confine us to the West again with this so-called Pacific Realty Group!
And what's more—this new Pacific Realty is built around Merlin Group, yet I only get such a small share of the stock? This is unacceptable!"
He stormed off without waiting for Leo's reply.
The commotion ended, but the onlookers needed time to digest what they'd seen.
"It seems American Realty has already drafted a breakup plan," one senator remarked.
"So what? In such a short time, balancing all the interests is impossible. Look, the cracks are already showing. This Valentino has been too arrogant this year—it'll do him good to take a beating."
Another senator, known to dislike Leo, added:
"You're right. Merlin is indeed a weak link. After all, if they really split up, we might just end up with another Rockefeller-style monopoly."
"This turmoil is no small matter. Unless Leo Valentino pays a price, it won't blow over. But I doubt this will be enough to truly ruin this lucky Italian."
"Shh! Quiet! If he decides to target you, it'll be child's play."
The careless talkers drifted away. But one listener took their words seriously—Congressman Anderson, one of Henry Stillman's key informants at the hotel. He rushed home to report everything in detail to Henry, including the speculation he had overheard.
Henry was thrilled, hurrying into the study—only to have an ashtray hurled at him. He ducked just in time.
"Father, are you trying to kill me?" Henry stammered.
"Hmph! Enter my study without knocking, will you?" Old John barked.
Only then did Henry notice the smoke-filled room and the empty cigar box on the desk. The room was unchanged from yesterday—his father had clearly stayed up all night.
Seeing his frightened son made John hate Leo even more. The thought of his deceased son John Jr. stabbed at his heart.
"Well? Another piece of bad news?"
Yesterday's response from McKay's secretary had left him furious. He had hoped to use McKay's silence to strike at Leo, but now McKay had openly withheld support—sure to sway many fence-sitters.
"Good news! Good news!" Henry exclaimed, then detailed Leo's public quarrel with Carson Merlin in Washington.
"Father, this is a golden opportunity! We can take over Merlin Group, or the Pacific Realty Leo is setting up. That way, we weaken him while planting our stake in his Western base."
Henry's enthusiasm spilled out.
John listened, calculating. Experience told him it could be a trap—Leo had never lost control like this before. Why suddenly now? Why with a split?
But the logic held. In Pacific Realty, Merlin's family only held 25%—a bitter pill indeed.
Though he trusted his instincts, John also knew this was a chance he couldn't ignore. His mind raced—who was best suited to handle this?
One name came to him: Robert Lehman.
The Lehman family, who rose from the bill-of-exchange trade, were infamous in Wall Street's Jewish circles for their greed and boldness. After Goldman Sachs soared with American Realty deals, Lehman—once their peer—grew envious.
In recent years, Robert had made several daring investments, with mixed success. But he hadn't landed anything on the scale of American Realty. And with Lehman heavily invested in Bank of America—only to see Leo's moves wipe out twenty years of effort—John believed he had a six-in-ten chance of persuading him.
Why? Because many on Wall Street resented Leo for monopolizing the West. They now clustered around Robert Lehman. John had once dismissed this loose alliance, but now it could serve as a useful spearhead.
Thanks to Leo's quarrel with Carson, Pacific Realty—the only piece of the breakup exposed—became the focus of restless undercurrents.
The very next day, Leo's newspapers smeared Merlin Group, publishing expert evaluations that slashed the value of their Western properties to levels comparable with mid-American holdings.
Everyone knew this was Leo punishing Carson for defiance.
But then came a twist. The Wall Street Journal, with no ties to the Merlins, suddenly defended them. Soon The Washington Post, other major outlets, and economists from Harvard and Yale joined in.
The media war became a deadlock.
On Wednesday, May 25, the first antitrust hearing against American Realty began.
CEO Austin was called to testify first. Most expected American Realty to resist fiercely, even if defeat was inevitable.
But to their shock, before the committee asked more than a few questions, Austin's lawyers—on his orders—presented a detailed breakup plan and expressed willingness to cooperate fully. They even agreed to let members of Congress oversee the process.
The plan was thorough, the tone sincere. For Stillman and others who had come prepared to attack the plan or accuse the committee of bias, it was a crushing disappointment.
In the end, no second hearing was needed. The committee transformed from investigators into executors, implementing the breakup plan American Realty had itself submitted.
Back in Washington, John Stillman immediately called Robert Lehman:
"Robert, I'll increase my support. If you succeed in this, I'll help you lobby the Ford family. You know what that means—if Lehman lands Ford's IPO, you'll leap into the ranks of Wall Street's top investment banks."
Robert, no fool and of John's generation, suspected this quarrel with Carson Merlin might be a trap. But he also knew—high risk, high reward. To leap forward, one had to dare the flames.
Hanging up, he told his secretary:
"Book me a flight to Los Angeles."