Drexel Burnham Lambert was one of the most profitable Wall Street investment banking firms during the late 1970s and most of the 1980s. The firm was founded in Philadelphia as Drexel & Company by Francis Martin Drexel. Elaborate marble facade of NYSE as seen from the intersection of Broad and Wall Streets For other uses, see Wall Street (disambiguation). ... Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. ... Nickname: City of Brotherly Love, Philly, the Quaker City Motto: Philadelphia maneto (Let brotherly love continue) Location in Pennsylvania Coordinates: Country United States State Pennsylvania County Philadelphia Founded October 27, 1682 Incorporated October 25, 1701 Mayor John F. Street (D) Area    - City 369. ... Francis Martin Drexel (April 7, 1792 – June 5, 1863) was a Philadelphia banker. ...

Drexel's son, Anthony Joseph Drexel became a partner in his father's banking firm at age 21, in 1847. The company made its money in the opportunities created by gold discoveries in California. The company was also involved in financial deals with the federal government during the Mexican War and the U.S. Civil War. A. J. Drexel became the head of Drexel & Company when his father died in 1863. He partnered with J.P. Morgan and created one of the largest banking companies in the world, Drexel, Morgan and Co.^[1] The firm subsequently assumed its original name. Anthony Joseph Drexel I (1826-1893) Anthony Joseph Drexel I (September 13, 1826 – June 30, 1893) was an American financier, banker, partner of J.P. Morgan and founder of Drexel University. ... Official language(s) English Capital  Sacramento Largest city  Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ... This article is becoming very long. ... John Pierpont Morgan (April 17, 1837 – March 31, 1913), American financier and banker, was born in Hartford, Connecticut, a son of Junius Spencer Morgan (1813–1890), who was a partner of George Peabody and the founder of the house of J. S. Morgan & Co. ...

After merging with Burnham & Company, the company was renamed Drexel Burnham.^[2] Drexel Burnham then fell into financial difficulty, at which point Groupe Bruxelles Lambert made a sizable investment. Due to this investment, it assumed the name Drexel Burnham Lambert.^[3]. Groupe Bruxelles Lambert (GBL) (Euronext: GBL) is a Belgian industrial holding company. ...

Business

Drexel's legacy as an advisor to both startup companies and fallen angels remains an industry model today. Among its notable employees was economist Abby Joseph Cohen, its vice president in charge of investment strategy. The firm rose from the bottom of the pack to compete with and even top the Wall Street bulge bracket firms. Drexel, however, was more aggressive in its business practices than most, and organizationally the firm experimented with the traditional management model. The firm also popularized high yield debt, popularly known as junk bonds, dominating that market through much of the 1980s. The firm had its most profitable fiscal year in 1986, netting $545.5 million. In 1987 the firm's star bond trader, Michael Milken, earned executive compensation of $550 million for the year.^[3] It has been suggested that Evil Angels be merged into this article or section. ... Abby Joseph Cohen (CFA) (born 1952 in Queens, New York) is an American economist and financial analyst on Wall Street. ... Elaborate marble facade of NYSE as seen from the intersection of Broad and Wall Streets For other uses, see Wall Street (disambiguation). ... Bulge bracket is a phrase associated with finance, in particular the investment banking industry. ... High yield debt (non-investment grade or junk bond) is a business term referring to a corporate debt instrument, usually a bond, that has a higher yield (compared to investment grade debt) because of a high perceived credit risk (default risk). ... High yield debt (non-investment grade or junk bond) is a business term referring to a corporate debt instrument, usually a bond, that has a higher yield (compared to investment grade debt) because of a high perceived credit risk (default risk). ... Michael Robert Milken (born July 4, 1946 in Encino, California) is an American financier who was highly influential in developing the market for junk bonds (a. ... Executive compensation is how top executives of business corporations are paid. ...

In the late eighties, the convictions of Ivan Boesky and Drexel employee Dennis Levine, as well as the later trial of Michael Milken for insider trading and securities fraud brought an end to Drexel.^[3] The firm filed for bankruptcy in 1990. DBL Trading, a subsidiary, was involved in the temporary gold loan default with the Central Bank of Portugal at that time. Ivan Frederick Boesky (born March 6, 1937, in Detroit) was notable for his prominent role in a Wall Street insider trading scandal that occurred in the United States in the mid-1980s. ... Dennis Levine (born 1953) was a prominent player in the Wall Street insider trading scandals of the mid-1980s. ... This article or section does not adequately cite its references or sources. ... Civil securities fraud is a form of white collar crime which has been increasing on the rise as the Internet and the World Wide Web have brought white collar criminals and their victims closer together, resulting in an upsurge in global economic crime. ... GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ... Default is the name of a number of quite different concepts. ...

Criticism

By the late 1980s, public confidence in leveraged buyouts had waned and criticism of the perceived engine of the takeover movement, the junk bond, had increased. Innovative financial instruments often generate skepticism and few have generated more controversy than high yield debt. Some argue that the debt instrument itself, sometimes dubbed "turbo debt," was the cornerstone of the 1980s "Decade of Greed." However, junk bonds were actually used in less than 25% of acquisitions and hostile takeovers during that period. Nevertheless, by 1990 default rates on high yield debt had increased from 4% to 10%, further eroding confidence in this financial instrument. Without Milken's cheerleading, the liquidity of the junk bond market turned dried up. Drexel was forced to buy the bonds of insolvent and failing companies, which depleted their capital and would eventually bankrupt the company. A leveraged buyout (or LBO, or highly-leveraged transaction (HLT), or bootstrap transaction) occurs when a financial sponsor gains control of a majority of a target companys equity through the use of borrowed money or debt. ... High yield debt (non-investment grade or junk bond) is a business term referring to a corporate debt instrument, usually a bond, that has a higher yield (compared to investment grade debt) because of a high perceived credit risk (default risk). ... A takeover in business refers to one company (the acquirer, or bidder) purchasing another (the target). ...

Following the bankruptcy of the firm a few companies emerged from the reorganized Drexel Burnham Lambert. Burnham Financial Group currently operates as a diversified investment company, and Drexel Burnham Lambert Real Estate Associates II operates as a real estate management firm. Apollo Management, the noted private equity firm, was also founded by Drexel alums led by Leon Black. Apollo Management L.P. is a private equity L.P. firm, founded in 1990 by Leon Black (Apollo Advisors). ...

Famous Drexel Alumni

• Abby Joseph Cohen, partner and chief U.S. investment strategist at Goldman, Sachs & Co
• Marc Faber, formerly managing director of Drexel's Hong Kong office, famous for the Gloom Boom Doom investment report "Dr Doom"
• Michael Milken former head of the non-investment-grade bond department; almost single-handedly created the market for "high-yield bonds" (also known as "junk bonds")
• Dennis Levine
• Ken Moelis, former President and Head of Investment Banking at UBS
• Jeffrey Chanin, founder of Chanin Capital Partners
• Todd Fisher, Senior Partner at Kohlberg Kravis Roberts & Co
• Leon Black-Apollo Advisors
• Kurt Feuerman-Caxton Associates
• Andrew Wallach-Cumberland Assoc
• Peter Sidoti- Sidoti & Co

Abby Joseph Cohen (CFA) (born 1952 in Queens, New York) is an American economist and financial analyst on Wall Street. ... Goldman Sachs offices at the Fraumünsterplatz in Zürich (the light-colored building on the left) The Goldman Sachs Group, Inc. ... Dr Marc Faber Born in Zurich, Switzerland. ... Michael Robert Milken (born July 4, 1946 in Encino, California) is an American financier who was highly influential in developing the market for junk bonds (a. ... High yield debt (non-investment grade or junk bond) is a business term referring to a corporate debt instrument, usually a bond, that has a higher yield (compared to investment grade debt) because of a high perceived credit risk (default risk). ... Dennis Levine (born 1953) was a prominent player in the Wall Street insider trading scandals of the mid-1980s. ... It is proposed that this article be deleted, because of the following concern: not notable other than family relationship If you can address this concern by improving, copyediting, sourcing, renaming or merging the page, please edit this page and do so. ...

References

Ludwig von Mises Institute for Austrian Economics, Auburn, Alabama The Ludwig von Mises Institute (LvMI), based in Auburn, Alabama, is a libertarian academic organisation engaged in research and scholarship in the fields of economics, philosophy and political economy. ... March 16 is the 75th day of the year in the Gregorian Calendar (76th in leap years). ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... Den of Thieves is a 1991 non-fictional bestselling work by Pulitzer prize-winning writer James B. Stewart. ... James Brewer Stewart (born c. ...

See also

• List of notable business failures