Draft:Money Games: The Inside Story of How American Dealmakers Saved Korea's Most Iconic Bank

Money Games: The Inside Story of How American Dealmakers Saved Korea's Most Iconic Bank, authored by private equity financier Weijian Shan, presents an account of a significant leveraged buyout, detailing the acquisition and subsequent revitalization of what was once Korea's largest bank by the American investment firm, Newbridge Capital..

The narrative explores the detailed process and challenges faced by Newbridge Capital in their unprecedented effort to take control of a major Korean financial institution. This endeavor was marked by considerable financial implications and was critical to the nation's economic recovery post the Asian Financial Crisis.

With billions of dollars at stake, and the nation's economic future on the line, Newbridge Capital became the first foreign firm in history to take control of one of Korea’s most beloved financial institutions. The book delves into the strategic planning, negotiations, and perseverance required to navigate the complexities of such a transaction, set against the sensitivities of a national economy emerging from financial distress and the implications of foreign ownership in a strategic sector. "Money Games" offers insight into the intricate world of international finance, highlighting the potential impacts and considerations of cross-border investments in the financial sector.

Synposis
Money Games: The Inside Story of How American Dealmakers Saved Korea’s Most Iconic Bank (2020) delves into the heart of one of Asia’s toughest and most controversial financial rescues, the acquisition and turnaround of Korea First Bank (KFB) by Newbridge Capital, a U.S. based private equity firm. Against the backdrop of the 1997 Asian Financial Crisis, the Korean banking system grappled with high leverage and credit concentration due to a prolonged period of relationship and policy-based lending. International Monetary Fund (IMF) stepped in with a colossal but conditional rescue package, setting the stage for a fierce clash between national pride and economic pragmatism that defined the era

At the heart of the story was Shan, then the Co-Managing Partner of Newbridge, who skillfully guided readers through the challenging and often unglamorous process of deal-making.

Shan outlines Newbridge's proposed "Good Bank/Bad Bank" structure, modeled after those employed during the U.S. Savings and Loan Crisis. He explains the strategic emphasis on maximizing employee productivity to avert layoffs, resulting in a substantial expansion in the bank's asset size and highlights the centralization of lending decisions to headquarter and regional centers, greatly enhancing the quality of the bank’s loans. . To diversify portfolio risk, the bank also focused on retail lending, where the Korean market was still at its infantry, and became a pioneer in the Korean personal mortgage business. Ultimately, KFB emerged as the best-capitalized bank in the country, paving the way for a triumphant exit for Newbridge returning multiple times of its capital

Amidst the high-stakes negotiations, intricate deal structures, and the relentless pursuit of financial resurrection, Shan provided readers with a front-row seat to one of the most remarkable turnaround stories in modern finance.