Larson nodded. “I’m not surprised by your attitude. I guess I may be a benefactor of that attitude as well.”
He stood, then, but Rubenstein pulled at his sleeve. “Could you wait a moment? I have a personal matter to tell you about.”
Larson sat.
“I’ve decided to take leave of absence. I’m at a standstill while others are testing and applying my current work and, given the amount of money my foundation is absorbing, I’d like to concentrate on improving Augur.”
“Will that affect our operations?”
“Not at all.”
May 19
Kostov was able to return to Birmingham the next day. Hazlett smiled. “Pardon my saying so, Mr. Kostov, but you look like if you have any luck at all, you’ll die.”
“I beg your pardon!”
Hazlett laughed. “I apologize—an Americanism. It means you appear to be fatigued.”
Kostov smiled. “I am. I did not know that I would be returning, so when I reached Moscow, I took the usual steps to overcome jet lag. I’ll recover in a few hours.”
“We can postpone our work until tomorrow, if you like.”
“No, no, I am ready to begin. I have compared life in your city with that of Moscow. They need the money at home as soon as I can get it to them.”
Hazlett handed Kostov a sheet of paper. “Here is the liquidity-illiquidity breakdown.”
Total Russian 75% HEMvM Trust’s 25% 10,340,000,000 7,755,000,000 2,585,000,000
Russian liquidity HEMvM Trust’s liquidity 5,023,000,000 1,674,000,000
Russian illiquidity HEMvM Trust’s illiquidity 2,732,000,000 911,000,000
“I do not understand.” “This sheet tells us how much The Mannerling Trust has in liquid assets and how much is illiquid.”
“I understand the English, Mr. Hazlett, but—”
“I’d like to interrupt here for a suggestion. Since we’re going to be working together, what would you think of using our given names?”
“Given names?”
“First name. My name is Norm—Norman, actually. I’d like you call me Norm.”
Kostov smiled. “Of course. I am Ivan Arkadyevich.” He smiled. “Ivan will do here, I think.”
“Good, Ivan. Now to your question. In our system, assets said to be liquid are those that can be accessed immediately—cash and negotiable securities.”
“Negotiable securities—stocks and bonds that can be sold quickly. Yes.”
“Illiquid assets are those that cannot be converted to cash quickly. The majority of our illiquid assets are invested in real estate. For example, we own this building. To sell—”
“Really?”
“You’re surprised?”
Kostov smiled. “I forgot where I am.”
Hazlett smiled. “So, while the building is very valuable, we couldn’t sell it quickly at its full value. Since we can’t sell it today or tomorrow, it’s an illiquid asset.”
“So, how long before the illiquid assets can become liquid and sold?”
“We estimate we can recover eighty-five percent of the value within three years. As for—”
“Three years?”
“For around eighty-five percent. When we reach that point, we may be able to propose a reasonable buyout with you for the remainder. In the meantime, we’re prepared to transfer your portion of the liquid assets—five billion and change—whenever you’re ready.”
Kostov nodded. “I must confer with the Finance Minister. I doubt if he has an understanding of the nature of the assets.”
“It occurs to me you might consider hiring an American firm of accountants to represent your interests.”
“Yes, perhaps.”
May 23
Kostov called Kudrin early the following Monday morning. Kudrin was busy, but
returned the call ten minutes later.
“I regret I could not talk when you called, Ivan Arkadyevich. “I find that I have
more telephones than I have ears. Now, the reason for your call?”
“I have learned there is a question of something called illiquidity. I was concerned
that you might not understand the meaning of—”
“Illiquidity? It is your supposition I have become Finance Minister of the Russian
Federation without having an understanding of liquidity in investments?” “It was a new concept to me and I—”
Kudrin chuckled. “You are forgiven, Ivan Arkadyevich. No one knows everything.” “Thank you, sir.”
“What is the time to go?”
“Time to go? Ah, three years to reach eightyfive percent.”
“Real estate, I suppose, and investment partnerships with longterm commitments.” “So it was explained to me, sir.”
“It is not a matter of concern, Ivan Arkadyevich—the money came with the wind.” “Yes, sir.”
“I think I shall have you continue working there. Our American associates seem
agreeable, but we need someone on the scene. Does three years in Alabama appeal to
you?”
“I go where I am needed, sir.”
“I shall review the idea with the President.”
Kudrin found ten minutes in Putin’s schedule that evening. “Five billion in a matter of days.”
“Excellent! And the remaining five?”
“There is not five billion more.”
“I do not understand.”
Kudrin explained.
“Do we trust these people?”
“Our man does and he makes the point they could have fought the entire matter— perhaps successfully, with help from their government.”
“I suppose. Do we require independent verification?”
“I think not. Kostov’s point is—”
“Enough. When do we receive the remainder?”
Kudrin explained the schedule.
Putin frowned. “I am not pleased with the delay, Aleksey Leonidevich.” “Nor I.”
“Who will monitor our interests?”
“I nominate Kostov to continue in the role.”
“He is willing?”
“He is.”
“He is intelligent?”
“I have explained to you how he was able to secure the Tsar’s key.” “Yes, you have.”
“You trust him?”
“I do.”
“Why?”
Kudrin explained his reasons for having selected Kostov at the outset. “The Florentine would be proud of you.”
“The Florentine?”
“Machiavelli.”
May 24
Kudrin called Kostov before lunch the next day. “Awake, awake, Ivan Arkadyevich.
You have become too acclimated to American time.”
The clock beside Kostov’s bed indicated two o’clock. “Yes, sir.”
“Good. I have shared your good news with the President. He was most pleased—
though doleful at the projected delay in recovering the illiquid assets.”
“Yes, sir.”
“You are to represent us with the Americans during the time needed to recover the
illiquid assets.”
“Yes, sir.”
“Secure an office in the Birmingham area. Mashcherov will handle the funding of
your activities.”
“I understand.”
“You have no other assignments.”
“But—”
“Do some fishing. Learn to drive racing cars. Look for Scarlet O’Hara’s plantation.” “Yes, sir.”
“I shall arrange for you to return home regularly and I promise your new career at the
Ministry will not suffer.”
“Very kind of you, sir.”
“Not at all.”
A silence followed. “Wait. I have a change of assignments. Given the fact that the
part of your assignment requiring close consultation with me is over, I am going to assign
a lesser associate, Iakov Nikolayevich Ushensky, to r
eplace Mashcherov. He will receive
your reports and handle the financial aspects of your activities.”
“Yes, sir.”
“Well done, Ivan Arkadyevich. Continue to justify my confidence in you.” “I shall.”
Kostov called Hazlett that morning. “I have one of the American good news, bad news anecdotes for you, Norm.”
“You’ve been in America too long.”
“The good news is both the President and the Finance Minister are trusting you to deal fairly with us.”
“What’s the bad news?”
“The bad news is their trust is based in part upon the fact I am assigned to monitor the activities.”
Hazlett laughed. “Very sensible, Ivan. It’s not been that long since we were mortal enemies.”
“True.”
“And what does your being assigned mean?”
“I am to return to Birmingham until all assets have been repatriated.”
“Excellent. When can you come to the office? We have arrangements to make.”
“Tomorrow.”
Hazlett found Sweet reading Gulf Coast Golf. “Have they decided which course yet?”
“Greystone. They promise to toughen the greens.”
“Good.”
“What’s going on?”
“Ivan just called. Kudrin and Putin have agreed to everything.”
“As they should have,” Sweet said. “It’s found money for them.”
“And they’ve assigned him to monitor cashing out the illiquid assets.”
“Makes sense. Suspicion is part of the Russian psyche.” He paused. “So, let’s welcome him. Arrange an office. Get him a secretary. Help him get settled.”
Hazlett nodded.
Sweet smiled. “There is a question, though.”
“What’s that?”
“What’s he going to do all day? For three years?”
“What do we do all day?”
“We look at reports and we meet with managers.” Sweet paused. “And we read a lot.”
“That’s what he’ll do.”
“And we play a lot of tennis and golf and we fish a lot and we fly around to look at investments—some of which are not far from nice golf courses and better fishing.”
“It may take him a while to acclimate, but Ivan’ll fit in nicely.”
Sweet chuckled. “Who knows, maybe he’ll join the Kiwanis Club.”
May 25
Kostov arrived at The Mannerling Trust early the following day.
Sweet had cleared his schedule. He extended his hand. “Nice to see you again, Mr.
Kostov.”
“And you, Mr. Sweet.” “Before we get started, gentlemen,” Hazlett said, “I have a proposal. Ivan and I have already reached an agreement regarding our first names. I propose you two do the same.”
Sweet nodded. “I‘m more than agreeable, Ivan.”
“My pleasure, Richard.”
Kostov opened a package of Sobranie Black Russians. “May I?”
Sweet looked at Hazlett, then back at Kostov. “We prefer not, Ivan. The entire building is smokefree.”
Kostov returned the cigarettes to his pocket. “Please forgive me.”
Sweet nodded.
“Now,” Hazlett said, “let me explain our housekeeping ideas to you. We propose that you and I share my office suite. I’ll move one of my young associates out. We’ll share my secretary. You’ll like her—Bettyann Wiggins. A grandmother, but sharp as a tack.”
“A tack?”
Sweet smiled. “Does a good job.”
“She’ll get you organized. You’ll need an apartment and—”
“I have one.”
“Already?”
“Left over.”
“Left over?”
“It belonged to a colleague here on an unrelated assignment.”
Hazlett hesitated. “Well, Bettyann will handle everything else for you.”
“For example?”
“Automobile lease, driver’s license, insurance, and so forth.”
It was still light in the long summer day when Ushensky called Staranov’s apartment. “Five billion. Tell him five billion.”
“Ridiculous, Ushensky!” Parenko said. “How do you know this?”
“I have been assigned to manage communications between one Ivan Arkadyevich
Kostov, an assistant to Minister Kudrin on duty in America, and the Minister.” “I know Kostov. We served in the same unit for a while. He was a terror. I do not
believe that he would be given such an assignment.”
“But—”
“I do not wish to begin my day with Eugen Yakovich with such a stupid story as
that.”
“Your mistake. Ask him to call me.”
Staranov listened to Ushensky’s report, then pointed at Parenko. “Look into it immediately. And do not presume to make decisions for me.”
“Who shall I use? Lugenkin?”
“No. The gunner.”
“Gunner?”
“The new man, Dreshchensky. He is in New York with Pavel Georgivich.”
Parenko located Dreshchensky in a whorehouse in Brooklyn on Brighton Beach’s Fifth Street. “Arise, you useless bastard!”
“Who is—”
“Parenko.”
“Who?”
“Anatoly Maksimovich Parenko, formerly of the Second Chief Directorate.” “I do not know—”
“As you, I am employed by Galavna-ya Bohl.”
Dreshchensky pushed his bedmate’s arm off his chest and sat up. “Now listening.” Parenko described what he had learned.
“Billions?”
“Yes.”
“And I am to do what?”
“Eugen Yakovich wishes you to travel to Alabama and ask my old acquaintance if he will aid us in diverting these assets.”
“When?”
“Immediately—before the assets can be transferred.”
“Where is he?”
Parenko completed the information regarding Kostov.
May 26
It was late the next afternoon before Parenko completed arranging the funds for the
travel. Dreshchensky left LaGuardia for Birmingham early the next afternoon.
Kostov had just removed his necktie that evening, when the doorbell rang. He looked through the peephole. There was a smiling stranger, an American by appearance.
“Yes?”
Dreshchensky looked both ways down the hall. “Open the door, Ivan Arkadyevich.”
Kostov did so. “Who are you?”
“I am Nikita Petrovich Dreshchensky, once of the SVR, now an honored member of Galavna-ya Bohl.”
Kostov frowned. “How did you find me?”
“With ease, Ivan Arkadyevich. This is America. You have a telephone in your name and you have leased an automobile.”
“What do you want?”
“May I be seated?”
Kostov nodded. “What do you want?”
“I want you to divert the assets upon which you are working to our bank in Moscow.”
“How do you know about the assets?”
“I was informed by Eugen Yakovich Staranov.”
“A familiar name. He is?”
“One of the leaders of Galavna-ya Bohl.”
“I know that name as well.”
“Who does not?”
“How did he know about the assets?”
“I do not know.”
Kostov shrugged. “It makes no difference. The answer is no.” He started toward the door.
“Wait!”
“Tell your man the cash is already gone. Transferred several days ago. The remaining assets are illiquid.”
“Illiquid? I do not know this—”
Kostov explained.
Dreshchensky frowned. “How do I know you are telling the truth about the transfer?”
“I do not owe you the truth, Dreshchensky, but the facts can be determined. Your bank doubtless has enough claim t
o legitimacy to be able to cull the international transfer records of cash entering Russia. As to the other portion of the assets, that is why I am here, to oversee the conversion of these illiquid investments to cash.”
“How much time will that require?”
Kostov smiled. “Beyond your attention span. At least three years.”
“Years?”
Kostov nodded. “Tell your man I do not expect to hear from him again.”
Kostov telephoned Ushensky immediately. “Said he had been SVR, now working for one of the mafya organizations.”
“Which one?”
“Galavna-ya Bohl.”
“Big and strong.”
“So I have heard. Tell Aleksey Leonidevich we have been penetrated.”
Ushensky’s call to Kudrin was his second. Chapter 18 June 13
Hazlett knocked on the door to his new suitemate’s office. “Ivan, if you have an
available moment?”
“I find I have many moments available, Norm.”
“I’m sure the time weighs upon you.”
“I have read everything you have given to me. I have taken an inordinate amount of
your time explaining things to me. And I am engulfed in boredom.”
“Well, I have something of interest for you to consider today.” Hazlett handed him a
file. “Read this and then let’s talk.”
Half an hour later, Kostov knocked on Hazlett’s door.
“Ready to talk.”
“You understood the proposal?”
“We are to place all of our illiquid investments in a partnership?”
“Yes.”
“And we divide the resulting profits three-fourths, onefourth?”
“Yes.”
“Good—except I did not follow what you called the Solomon buysell.” Hazlett smiled. Stories from The Bible had been missing from Russian life for a long
time. “Easy. Any time either of us wants to end the relationship, that party names an amount of money at which he’s willing to either sell his position or buy the other position.”
Kostov nodded. “ The other party has the right to choose whether to buy or sell at that figure— adjusted for degree of ownership, of course.”
Kostov smiled. “What an intelligent way of handling a division. I congratulate you.”
Hazlett laughed. “Not original with me.”
“I agree to the idea. I shall inform the Ministry.”
“No approval needed?”
“No.”
“Excellent.”
“That weighty matter out of the way, I have a less demanding proposal for you.”
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