On Wednesday, the New York Stock Exchange opened.
Tom Hayes sat in his office, overlooking Wall Street, like a conductor about to lead a symphony.
However, instead of a score, he had only three encrypted telegraph lines connecting to Boston and Philadelphia.
"Johnny," he gave his first command to his assistant beside him.
"Sir, I'm here. What are your orders?"
"Send telegrams to our friends in Boston and Philadelphia, tell them to begin the operation."
"Yes."
"You personally go to the Exchange. Find our three agents in New York, who don't know each other, and tell them the same thing."
"Today and tomorrow."
"We have only one mission: to convert all of our three hundred thousand into short positions in Knickerbocker Bank, without alarming anyone. I want our noose silently tightened around Mr. Sterling's fat neck before the market closes on Thursday."
Thus began a secret short-selling operation spanning the three major financial centers of the American East Coast.
In the Exchange hall, Knickerbocker Bank's stock trading was as lukewarm as ever.
No one noticed that amidst the seemingly normal small buy and sell orders, a massive short-selling force was quietly gathering.
Meanwhile, at New York's most exclusive Union League Club...
Mr. Sterling, the president of Knickerbocker Bank, was complacently enjoying lunch with one of his banker friends.
"Sterling," his friend asked with some concern, "I heard that the Nevada silver mine you invested in seems to have a small problem?"
"Problem?"
Sterling scoffed, cutting his medium-rare steak on his plate, and said nonchalantly.
"My friend, any great endeavor will encounter a few minor setbacks at its inception. That's normal, isn't it?"
"Don't worry, our bank's stock price is very stable. Depositors also have full confidence in us. Knickerbocker Bank is a solid fortress built with progress and the future. No small storm can shake it."
This conversation, two hours later, was relayed word for word to Felix's ears via Hayes's informant at the club...
Thursday afternoon, ten minutes before the Exchange closed.
Hayes put down his coffee cup. He said to Felix, who had been sitting quietly on the sofa reading the newspaper,
"Boss, everything is in place."
"Three hundred thousand dollars has all been deployed. We used three hundred thousand as margin at City Bank to borrow short positions worth six hundred thousand dollars in stock. The average short-selling price was ten dollars per share."
"And the market," Hayes smiled, "is still completely unaware."
"Very good." Felix put down the newspaper. "Catherine should be leaving now too."
At the same time, in the office of Argyle & Co. Foods.
Catherine held a seemingly unremarkable kraft paper envelope.
Inside were all the incriminating evidences sufficient to condemn Sterling and his bank to death.
She spoke to the head of security waiting outside the door.
"Mr. Miller, please arrange for two people to go to the State Government Building and deliver this document to the Banking Supervisory Committee and the New York Daily."
"No problem."
Friday morning at seven o'clock, at the New York State Banking Supervisory Committee building.
The person Miller arranged had no appointment and did not announce his name. He simply walked to the chief secretary's desk.
"Good morning, I am entrusted by an anonymous patriotic citizen to deliver an urgent document concerning New York's financial security and public interest to Mr. Supervisor."
"Excuse me, who are you? And what is the document about?" the secretary asked warily.
"The person did not give a name, but he said the contents of this document would explain everything."
He placed the heavy kraft paper envelope on the secretary's desk.
"My client has only one request. He hopes Mr. Supervisor can see this document in person by ten o'clock this morning, before the stock exchange opens. Otherwise, he and all the depositors in New York will suffer irreparable huge losses, and it seems the New York Daily will also receive this document."
After speaking, he did not linger.
He nodded politely to the secretary, then turned and calmly left the building.
Arriving quietly and leaving quietly.
Leaving the bomb, capable of igniting a financial earthquake, silently at the center of the storm.
Eight fifty-five.
On Wall Street, in the office of Patriot Investment Company.
Felix, Catherine, and Hayes silently watched the large clock on the wall.
The second hand ticked.
Like a countdown to judgment.
"Boss, all our short positions are in place." Hayes's voice was a bit dry.
"My report materials have also been delivered." Catherine's hands were slightly cold.
Ten o'clock sharp.
The opening bell of the Exchange rang precisely.
One minute... two minutes... five minutes... On the blackboard, Knickerbocker Bank's stock price remained at ten dollars, with no movement.
A fine layer of sweat beaded on Hayes's forehead.
Suddenly, the office door was violently slammed open.
His assistant, Johnny, rushed in, scrambling like a madman who had seen a ghost.
In his hand, he held a news announcement just torn from the telegraph machine.
"Mr. Hayes, Boss!" His voice cracked from extreme shock.
"News announcement from the state government! Red emergency announcement just issued by the Banking Supervisory Committee!"
"The Committee announced that due to receiving reports of 'significant financial fraud,' it will immediately launch the most comprehensive emergency investigation into Knickerbocker Bank!"
"Bank President Sterling has been temporarily suspended! And restricted from leaving the country!"
"And the New York Stock Exchange has just announced a temporary suspension of trading for Knickerbocker Bank's stock!"
"Boom—"
Something exploded in Hayes's mind.
Suspension of trading.
This meant that when it resumed trading, its price would no longer be ten dollars.
But one dollar.
Or even, one cent.
Their six hundred thousand dollar short positions instantly became a profit black hole.
"We... we..." He looked at Felix, his lips trembling, unable to speak.
Felix stood up.
He walked with a smile to Catherine, who was also in shock.
"Dear Catherine, it seems the company will have a very, very ample amount of funds."
When the red emergency announcement from the Bank Regulatory Committee spread throughout the financial district via telegraph lines, a storm that was already destined to happen officially began.
In the office of Patriot Investment Company.
"Boss."
Hayes, this Wall Street veteran, had quickly regained his composure after the initial brief shock.
"The exchange has confirmed that Knickerbocker Bank's stock will be suspended for at least a week, awaiting the preliminary investigation results from the Regulatory Committee."
"A week." Felix nodded, "That's enough time for this tiny snowball to roll into an unstoppable avalanche."
"Yes." Hayes smiled, "Many people outside are now discussing the New York Daily, saying your two moves yesterday were truly brilliant."
At that time, Felix's plan was a two-pronged approach.
Catherine had Miller send someone to deliver the anonymous evidence to the Regulatory Committee.
Another subordinate had also quietly placed an identical copy at the doorstep of one of the New York Daily's most radical and righteous columnists.
So, on the second morning, when the citizens of New York awoke from their sleep, what they saw was a newspaper capable of igniting all stockholders and depositors.
The front-page headline of the New York Daily reported the matter with an inflammatory title:
"Knickerbocker's Scam, Depositors' Blood and Tears. A Banker's Shameless Lie!"
The newspaper, with unprecedented coverage, not only reported in detail the Regulatory Committee's investigation announcement, but, even more astonishingly, it also included several key pieces of information leaked from that anonymous tip-off!
That risk warning memo personally written by Peterson.
That fraudulent contract for the loan to the "Nevada Silver Scam."
Everything was laid bare before the public… "My God, George! Have you seen today's Daily? Knickerbocker Bank! It's a fraud!"
In a coffee shop in Midtown, a businessman, holding a newspaper, exclaimed to his friend at the same table.
"I saw it. My money… my life's savings are all deposited there!" His friend's face was pale, and he was trembling all over.
"Me too, what should we do? Can we get our money back?"
"I don't know. But we can't just let it go! Come on, let's go to the bank! Let's get to the bottom of this!"
Similar scenes were unfolding in every corner of New York.
At nine o'clock in the morning, when Knickerbocker Bank's formerly imposing bronze doors had just opened, thousands of angry depositors had already gathered outside.
"Return the money!!"
"Sterling! You swindler! Get out!!"
"We want our money back!!"
Meanwhile, at the other end of Wall Street, the New York Clearing House Association, the supreme authority composed of all the city's top bankers, was holding an emergency closed-door meeting.
"Gentlemen."
The association's chairman, a highly respected old banker, spoke in a somber tone.
"The Knickerbocker Bank scandal is no longer just Sterling's personal affair. It is turning into a crisis of trust for our entire New York banking industry."
"The Regulatory Committee's investigation is one thing."
Another banker slammed the table in anger, "But that damned New York Daily! Who leaked those fatal internal documents to them?! This is a declaration of war against our entire industry!"
The association chairman shook his head and said somewhat helplessly, "It should also be that anonymous person. He was probably afraid that the Regulatory Committee wouldn't act, and now is not the time to pursue this."
"Now we must react immediately. We must show the public and Washington our determination to 'clean house'."
He stood up and said, word for word, "I propose that the Clearing House Association immediately establish an independent emergency investigation committee. We will send the top accountants and lawyers to conduct a more severe and thorough financial audit of Knickerbocker Bank than the government."
"We must produce results before the Regulatory Committee. We must personally send Sterling, this scoundrel of the industry, to the guillotine. Only then can we regain public trust in us."
Of course, these bankers didn't mind this, because if they didn't react, it might affect their banks. They knew that few of them had clean hands.
Sterling was a minor issue compared to some people present… All of this was like a wonderful live broadcast.
Through Hayes and Flynn's intelligence network, it continuously converged on Felix's desk.
Hayes looked out the window at Wall Street, which had completely descended into chaos, and praised sincerely.
"Boss, everything is just as you predicted."
"The government, the media, and his peers."
"Three sharpest knives are simultaneously cutting Sterling's already rotten corpse."
"We don't even have to do anything; we just need to sit here quietly like this, waiting for the final feast."
Catherine looked at Felix.
However, a deeper thought flashed in her eyes.
She asked softly, "After all this settles, what will happen to Knickerbocker Bank?"
"It will go into bankruptcy liquidation," Hayes answered the question.
"The state government will appoint a bankruptcy trustee, who will publicly sell all the valuable remaining assets of the bank. For example, its building on Wall Street, that very valuable banking license, and the few quality loans on its books that can still be recovered."
"And the money from the sale will be used to pay those poor depositors. Of course, they usually don't even get back one-tenth of their principal."
Catherine shook her head and sighed, "That's truly unfortunate."
"Hey… Catherine, there's no need for that, because we didn't cause their losses. At most, we only triggered this information, and we also prevented more people from getting involved." Felix patted Catherine's shoulder, thinking she had some moral burden.
To his surprise, Catherine shook her head slightly and said something that surprised Felix.
"No, I was just thinking if we could use these depositors to do something."
Felix shook his head, rejecting Catherine's suggestion, "There's no need. We don't need to act again now, otherwise, we'll be exposed very quickly. Although it won't stay hidden forever, it can't happen before we own a bank."