Excerpts: “The Junk Heap”
- So the man who many thought cut a deal to avoid the public agony of a trial (and, not incidentally, to spare his brother, Lowell, from the threat of criminal prosecution) went on trial anyway.
- Milken admitted a measure of guilt in April, saying he engaged in illegal dealings with Boesky and David Solomon. He has paid $600 million in fines and penalties and faces up to 28 years in prison.
- The fees Drexel could earn by landing a client were enormous. Regarding Kohlberg Kravis Roberts & Co.’s leveraged buyout of Storer in 1985, Joseph said: “This was a transaction we wanted to do. KKR was an important client.” Drexel earned $55 million in fees in that deal. The firm made $118 million from Wickes.
- Federal prosecutors, led by Manhattan U.S. Atty. Rudolph Giuliani and armed with a zealousness to match the age, set out to show that “everyone doesn’t do that.” Threatened with the heavy club of racketeering indictments, a charge previously reserved mostly for organized crime, the rich and powerful dealmakers soon were cutting deals of their own and squealing on the bigger fish up the chain.
- And Richard Grassgreen, the chief executive of a company that ran day-care centers across the country and starred in Drexel’s television advertising campaign, testified that when he put up the money of Kinder-Care Inc. to help Drexel finance a hostile bid, then pocketed the fees, he knew what he was doing was wrong but did it anyway.
Source: Chicago Tribune