Free Web NovelChairman Ben Bernanke was making phone calls from his office.
Deep wrinkles lined his forehead, and exhaustion clouded his eyes.
Yet the voice coming through the receiver did nothing to ease his worries.
“―As long as The Wall Street Journal keeps publishing those articles, it’ll be difficult for us to step in, Chairman. Take care of that first, and then we’ll consider it positively.”
After ending the call, Ben Bernanke let out a deep sigh.
“Jamie says we need to clear up the preferential-treatment allegations first. I need to meet Murdoch before things get any worse.”
“Your appointment is coming up soon, Chairman. We should get ready.”
“Right. Let’s go.”
At his secretary’s words, Ben rose and slowly rubbed his face.
Ben entered a luxury hotel suite in New York.
The spacious room featured floor-to-ceiling windows overlooking the entire city skyline.
He quietly stared at Murdoch, who had already arrived and was sitting comfortably.
Murdoch greeted him with an easy smile.
“Chairman Bernanke. Good to see you.”
“Chairman Murdoch. The pleasure is mine.”
After the greetings, Murdoch pulled out a cigarette and lit it without even asking.
When he had smoked about half of it, he finally spoke.
“So why did you ask to see me? I contacted you several times before, asking for a meeting, and you ignored every one of them.”
Ben hesitated briefly before answering carefully.
“To be honest, I thought a private meeting between the two of us would only lead to an unpleasant conversation.”
“Ha! And now it won’t?”
“......”
“Do you know how disappointed I was? I supported you financially long before you became Chairman, back when you were still an assistant professor. I didn’t do it expecting anything in return, but rejecting my requests so coldly was hardly proper behavior.”
“I apologize for that.”
Even though Murdoch was openly attacking him, Ben apologized.
Murdoch clicked his tongue softly and crushed his cigarette into the ashtray before changing the subject.
“So then, why has Chairman Ben Bernanke finally moved that heavy backside of his to meet a humble businessman like me?”
Murdoch’s mocking attitude made Ben feel anger boiling inside.
Without speaking, he stared directly at Murdoch.
Murdoch met his gaze without flinching.
A heavy silence filled the room.
The two men glared at each other for a long time before Ben finally broke the silence.
“Chairman Murdoch. The articles appearing in The Wall Street Journal are causing people to misunderstand the Federal Reserve’s actions.”
Rupert Murdoch looked at him coldly.
“Chairman. Journalism exists to reveal the truth. Readers have the right to know it.”
Ben’s lips twitched at the firm response.
After choosing his words carefully, he spoke.
“Of course, informing the public is important. But if incorrect information spreads, it only increases fear and confusion.”
“What?”
Murdoch frowned.
“Incorrect information? Have you lost your mind, Chairman?”
His voice rose sharply.
“The Federal Reserve approached JPMorgan Chase about the acquisition, didn’t it? Didn’t you promise thirty billion dollars in debt guarantees and ultra-low-interest loans?”
Murdoch paused before continuing.
His tone remained aggressive.
“And yet you call it misinformation? Are you insulting Wall Street Journal reporters?”
“That’s not what I mean. I respect The Wall Street Journal’s journalism. But right now, I’m asking for cooperation in the interest of market stability.”
“People have the right to know what decisions the Federal Reserve is making and why. Hiding information goes against The Wall Street Journal’s principles.”
Ben nearly laughed.
The man once known as the king of tabloid journalism was now preaching principles about transparency.
The world had truly gone insane.
‘I thought he was crazy before, but he’s even crazier than I imagined.’
While cursing Murdoch inwardly, Ben continued trying to persuade him.
“If you delay the articles, the Federal Reserve will provide The Wall Street Journal with exclusive information for the next year.”
Murdoch’s eyes twitched for an instant.
‘What? Exclusive access for an entire year?’
Exclusive Federal Reserve information could generate enormous profits.
The Fed issued the dollar, set monetary policy, supervised financial institutions, and wielded immense regulatory power.
Simply knowing a few hours in advance whether interest rates would rise or fall could produce huge gains.
It would allow someone to bet on a guaranteed outcome.
Murdoch’s mind raced.
As he hesitated, Ben swallowed nervously.
Even waiting for an answer felt unbearably long.
Finally, Murdoch spoke.
“Chairman, your offer is certainly interesting. But we cannot abandon our principles. The articles will continue.”
Ben squeezed his eyes shut and lowered his head with a heavy sigh.
“Then could you at least adjust the tone? Why are you insisting so strongly that we’re providing special treatment?”
Murdoch frowned and relented slightly.
“I’ll discuss that with the editor-in-chief. But it would be better if you explained the allegations in detail. Otherwise, everything we know will end up in print.”
“Why are you doing this? If Bear Stearns collapses, the American economy could be devastated.”
“And isn’t that because the Federal Reserve failed to do its job properly? Ah, perhaps that doesn’t concern you since you weren’t Chairman at the time?”
Ben remained silent.
Murdoch smirked.
“Ben. You weren’t Chairman then, but you were a member of the Board.”
Those words weighed heavily on him.
“Of course, I’m not trying to avoid responsibility. But if we can just get through this crisis first—”
“Chairman, you do your job from your position, and I’ll do mine from mine.”
Murdoch cut him off firmly and stood, extending his hand.
“I’ll talk to the editor-in-chief. I’ll ask him to tone things down a little. Whether he agrees is another matter. As you know, I value The Wall Street Journal’s independence.”
It was clear Murdoch would not bend any further.
With another sigh, Ben rose and shook his hand.
“I respect the power of the press. But this is a time that requires caution. Please help us.”
Murdoch looked him straight in the eyes.
His expression was resolute.
“I understand what you mean. But I can’t compromise journalism’s fundamental principles. Reporting the truth is why The Wall Street Journal stands where it does today. Our readers trust us. The series will continue.”
There would be no compromise.
A dejected Ben turned to leave.
As he approached the door, Murdoch called out to him.
“Chairman. Look into Penny Block Capital and Scone Gate Advisory. You’ll find something very interesting.”
Ben frowned at the unfamiliar names.
“What kind of firms are they?”
“You’ll have to find out yourself.”
A broad smile spread across Murdoch’s face.
* * *
I looked down on Wall Street through the penthouse’s wide-open windows.
A true city that never slept.
The lights of Wall Street showed no sign of fading despite the late hour.
Rupert Murdoch stood nearby with a whiskey glass in one hand and a light smile on his face.
“Charlie, you should’ve seen how Ben Bernanke acted today. Those articles have really put him through the wringer.”
“He doesn’t have much choice. If this deal falls apart, the Federal Reserve and the Treasury will have to step in directly. Of course he’s sensitive. Those articles could seriously damage the Fed’s credibility.”
Murdoch swirled his whiskey and laughed loudly.
“He actually asked me to delay the articles. He even offered exclusive Federal Reserve information to The Wall Street Journal for an entire year if we did.”
Now that was quite a lure.
I wondered how Murdoch had responded.
Smiling with interest, I looked at him.
“Exclusive information? Bernanke must be cornered. Honestly, that offer would damage the Fed’s credibility more than the articles themselves. So what did you say?”
“Of course I refused. I told him reporting the truth is our mission. Delaying the articles would be an insult to journalism.”
The king of tabloid newspapers saying something like that.
The corner of my mouth rose involuntarily.
“That’s right. The truth shouldn’t be hidden. Principles matter. And they’re often difficult to uphold. The moment the public loses trust in the media, its reason for existing disappears.”
I raised my whiskey glass for a toast.
Murdoch clinked his glass against mine.
“Exactly. Trust is why The Wall Street Journal stands where it does.”
We drank together.
Murdoch lowered his glass first and raised one corner of his mouth.
“When he realized I wouldn’t delay the articles, he asked me to tone them down. Said we shouldn’t frighten people too much.”
“I don’t see any need for that. If it isn’t true, they can step forward and deny it. They’re not denying it, are they?”
Murdoch shook his head.
“No. They aren’t denying anything. They just insist it isn’t preferential treatment.”
“And what did you say?”
Murdoch grinned again.
A mischievous smile spread across his face.
“I told him I’d ‘discuss it’ with the editor-in-chief.”
“You have no intention of doing that, obviously.”
“Of course not! Why would I pass up an opportunity like this? If I tried to stop it, the editor-in-chief would probably revolt. There’s no reason for me to force the issue.”
I nodded in satisfaction and walked toward the windows with my glass.
Murdoch followed.
“The economy needs newspapers like The Wall Street Journal. Institutions that keep everyone in check. Upholding principles and exposing the truth. In the end, that’s what protects the American economy.”
“Perhaps. I’m not so sure. I’ll be gone soon enough, won’t I? It’s young people like you who change the world. Haven’t I changed after meeting you?”
Embarrassed by his own words, Murdoch spun his glass and looked away.
I smiled and raised my glass again.
“You’re still in excellent shape.”
“I’m not what I used to be. It’s about time I handed everything over to my son and took a rest.”
We toasted again and emptied our glasses.
The sound of melting ice clinking against the glass echoed softly.
“Charlie. Is Bear Stearns really going to collapse? No matter how much I think about it, I can’t imagine it.”
“Nothing lasts forever. Even The Wall Street Journal eventually ended up in our hands. Anything that fails to adapt eventually falls.”
“Huh...”
Murdoch sighed.
Smiling, I asked,
“You mentioned Penny Block Capital and Scone Gate Advisory, right?”
“He looked completely unaware of them.”
“Of course he did. That’s why JPMorgan created them.”
Those two firms were shadow-banking companies created by JPMorgan.
They operated much like banks while avoiding direct Federal Reserve oversight and regulation.
JPMorgan wasn’t alone.
Most major Wall Street banks had created similar shadow-finance entities to evade supervision and invest heavily in derivatives.
Completely unaware that those companies were time bombs capable of dragging their parent institutions into the abyss.
“Keep running the series. If JPMorgan Chase announces the acquisition, that’s when we expose those companies.”
“Understood. I’m curious to see what Chairman Bernanke decides to do.”
The New York night grew deeper.
Inside the penthouse, Murdoch and I continued our discussion.
Meanwhile, The Wall Street Journal continued publishing a series of articles exposing not only the Federal Reserve and JPMorgan Chase but also the structural problems of Wall Street itself.
At the same time, Han Kyungyeong and I began rewriting our scenarios.
We reviewed plans for both possibilities—Bear Stearns collapsing into bankruptcy and JPMorgan Chase ultimately acquiring it.
Several more days passed.
Finally, under mounting pressure from The Wall Street Journal’s flood of allegations, the Chairman and CEO of JPMorgan Chase stepped before reporters in person.
