Word: burnham
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...addition to the individuals, Drexel Burnham as a corporation was subpoenaed by the SEC and by a federal grand jury. For the past two years Drexel Burnham has been Wall Street's most profitable investment firm; its 1985 gross earnings were an estimated $1.1 billion. In a bid to head off a run on accounts held with the company, Drexel Burnham declared it was "providing information" to investigators and emphasized that it "will not condone or tolerate any activities which violate the integrity of the markets...
...there will be plenty. Most of the furor that the Boesky case has caused so far comes from the SEC's Nov. 14 judgment against the arbitrage superstar. That, in turn, was based on the relationship investigators uncovered between Boesky and Dennis Levine, the former managing director of Drexel Burnham who first blew open the scandal when he was charged last May with illegal trading in 54 stocks...
...case against Boesky, the SEC charged that he had in effect contracted for insider information with Levine, who as a merger-and- acquisition specialist with Drexel Burnham had advance knowledge of takeover bids. Levine has been ordered to pay back $11.6 million in illegal profits and awaits sentencing on four criminal counts. In the spring of 1985 Boesky allegedly promised to pay Levine a percentage of profits for his tips, and subsequently the two agreed on a $2.4 million lump-sum payment. The SEC's complaint detailed a number of stock-trading situations in which Boesky had profited illegally...
...thing that seemed to tie many of those deals together was the financing role played by Drexel Burnham. In one sense that was unsurprising, since the company completely dominates the market for the high-interest junk bonds that have been issued to finance so many corporate mergers and buyouts. For other Wall Street firms even remotely connected with suspect deals, a major source of concern was the sheer sweep of Boesky's operations over the years. Said a member of the Goldman, Sachs investment house: "Most major brokerage firms executed trading orders for Boesky." Agreed another Wall Street analyst...
...corporate raiders to raise billions of dollars for ventures that have reshaped American business. Yet most investors have had persistent reservations about the safety of the securities. One concern is that too much of the underwriting and trading in junk bonds has been handled by just one firm, Drexel Burnham Lambert (last name pronounced Lamb-bear), which controls 50% of the market. If that go-go firm were to get into trouble, many certificates could become more difficult to sell and would decline substantially in value...