Survivors
A few other firms emerged or became more important from Drexel's collapse, besides Burnham Financial.
There was also the 1838 Group named after the founding date of Drexel established by another group of investment fund managers. The funds suffered from under performance and the group folded. 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 alumni led by Leon Black. Richard Handler joined Jefferies immediately following the Drexel bankruptcy with a number of partners and began building the firm into what today is the largest, independent, full service, global investment bank (non bank-holding company). Fred Joseph helped establish Morgan Joseph, a middle-market investment bank that caters to many of the same kinds of clients as Drexel had. Although the firm carried his name, he was only co-head of corporate finance until his death in 2009. In 1993, the SEC barred him from serving as president, chairman or CEO of a securities firm for life for failing to properly supervise Milken. Morgan Joseph's CEO is John Sorte, Joseph's successor as president and CEO of Drexel from 1990 to 1992. Portfolio.com and CNBC recently named Joseph the seventh-worst CEO in American business history stating that "his poor management left the company without a crisis plan". After retaliation from the federal government, and mind you during prosecution, Mike Milken embodied the hearts of many loyal advocates, employees, and financiers alike to keep Drexel & Co. afloat. Unlike John Gutfreund, from Salomon Brothers, he managed to prosper and signify Drexel as a force to be reckoned with through his continual efforts to maintain "loyalty, honesty, and integrity." From a brief interview with Milken after his release, quote, "Our structure consisted of top-down hierarchical which benefited everyone from an associate trader to a managing director in the same regards."
Read more about this topic: Drexel Burnham Lambert
Famous quotes containing the word survivors:
“I want to celebrate these elms which have been spared by the plague, these survivors of a once flourishing tribe commemorated by all the Elm Streets in America. But to celebrate them is to be silent about the people who sit and sleep underneath them, the homeless poor who are hauled away by the city like trash, except it has no place to dump them. To speak of one thing is to suppress another.”
—Lisel Mueller (b. 1924)
“I believe that all the survivors are mad. One time or another their madness will explode. You cannot absorb that much madness and not be influenced by it. That is why the children of survivors are so tragic. I see them in school. They don’t know how to handle their parents. They see that their parents are traumatized: they scream and don’t react normally.”
—Elie Wiesel (b. 1928)