Word: drexel
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Dates: during 1990-1999
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...financier pleaded guilty last April to six of 98 counts of securities violations and agreed to pay a record $600 million in fines and restitution. The defense tactic helped precipitate an unusual two-week presentencing hearing that showed Milken's operations at the now defunct Wall Street firm Drexel Burnham Lambert to have been riddled with unlawful activities. Significantly, the new testimony did nothing to refute the government's claim that Milken had encouraged Drexel employees under him to destroy or remove incriminating documents. Moreover, Liman's strategy precluded Wood from crediting Milken for any real remorse. Said Wood: "Your...
Even as Milken heard his sentence, the firm he had built into a financial powerhouse was under legal siege once again. Federal regulators earlier this month filed a $6.8 billion claim against the bankrupt Drexel for allegedly rigging the junk-bond market and selling bonds to savings and loans before the value of the IOUs collapsed. The government expects to lose at least $2 billion on junk bonds that it has taken over from seized thrifts. Drexel said it would strongly contest the government claim...
...becoming more remote. In fact, analysts warn that this has produced a credit crunch that could push many over-leveraged companies closer to failure. The situation is worst for firms that borrowed heavily by issuing junk bonds. The investment house that controlled most of the market for those securities, Drexel Burnham Lambert, has gone out of business, making the refinancing of such debt all but impossible...
Government investigators are now probing a complex network of companies and S&Ls that invested deeply in junk bonds, mostly handled by Drexel Burnham Lambert, and carried out elaborate deals to swap the bonds and other assets. Some of the bonds were used to artificially shore up ailing thrifts or were sold in multimillion-dollar lots to cooperating S&Ls. Federal investigators are giving particular scrutiny to Silverado, Charles Keating's Lincoln S&L in California, CenTrust Bank in Miami, and San Jacinto Savings in Texas. Each had extensive business dealings with Drexel and with one another...
Many correspondents painted a benign picture of the financial wizard whose acumen, and sometimes shady practices, powered the 1980s takeover wars. While Milken earned more than $1 billion as the guru of the now defunct Wall Street firm Drexel Burnham Lambert, friends argued that accumulating vast wealth was never his main goal. Wrote CBS president Laurence Tisch, who said he has known Milken for almost 20 years: "I have rarely dealt with a more dedicated and faithful professional or one more sensitive to the needs and goals of his clients or more mindful of the needs of society at large...