This ignores the fact that his philanthropy started two decades before he was diagnosed with cancer in A very cynical, though uninformed view, suggests that Milken’s philanthropy is just a case of a rich guy trying to cure his own disease. Cellphones are in just about everyone’s pockets today. While the PCF has done magnificent work and saved countless lives, Mike works with many other research and advocacy groups to accelerate medical solutions. The more-recent scandals grew out of managerial abuse by executives acting in their own interests rather than in the interests of stockholders.

By this measure, the Ebbers case is more than 34, times bigger than Milken’s. Milken’s medical and public health philanthropy began in the s and paralleled his business career. Prosecutors identify defendants to go after instead of finding a law that was broken and figuring out who did it. An October article in The Economist said Milken was “a useful scapegoat for the savings-and-loan crisis. Prosecutors and politicians want scapegoats, and often have the collaboration of businessmen. It is derived from a broad portfolio of investments including many companies in such areas as biotechnology and other growth sectors.

michael milken wharton thesis

The choice of capital structure can significantly affect the valuation of a company and its risk as an investment. The Milken Family Foundation was established years before any of the activities occurred that were later found to violate securities regulations.

Milken created a tremendous pool of liquidity and guided its use with surgical precision. For much of the s, conditions generally favored debt financing.

Milken and others; cases based on his information collapsed. It has been a corporate governance issue ever since A.

What Went Wrong: An Examination of Drexel Burnham Lambert’s Descent into Bankruptcy

His financing was crucial to Chrysler when it most needed funding to stay in business and grow. But, as he and the firm’s credit analysts began learning more about the high-yield, or “junk,” bond universe than anyone else on Wall Street, Milken proposed — and got approval — to take the next step. At pre-sentencing hearings, the prosecution was invited to show its best evidence, after more than four years of intensive investigation, of more serious violations, including insider trading.


Many people believe in myths lacking any demonstrably factual basis. Prosecutors identify defendants to go after instead of finding a law that was broken and figuring out who did it.

This structure – taken for granted today and widely taught in business schools – powered job growth in America for a quarter-century and is now moving around the world through the efforts of the Milken Institute.

michael milken wharton thesis

Manne, called takeovers “the most powerful market mechanism for displacing bad managers Between andMilken miloen approximately 50 distinct securities types in a dozen major asset classes only one of which was high-yield debt to help finance the growth of more than 3, companies.

In various Wall Street Journal op-ed articles, Milken has noted: A common error often repeated in the press is that Milken was a financier who “turned to” philanthropy.

When banks encountered problems in the s and shut down the flow of capital, Milken stepped forward and made capital available for fhesis of dynamic, growing companies that created jobs and shareholder value.

InGeorge Washington University announced the renaming of what is now the Milken Institute School of Public Health in recognition of a major gift from the Institute. On the contrary, the fictional Gekko character is based on Ivan Boesky, who in a famous speech at the University of California, Berkeley, said, “I think greed is healthy.

It is unrelated to his previous work on Wall Street. In contrast, as noted above, micgael of the five Milken violations were found by the judge to have had zero wnarton effect. You have only so much time in a day.

Michael Milken – Myths

Hitting a rich man in those days was a very smart thing for a guy like [federal prosecutor and future New York Mayor] Rudy Giuliani.


These two situations are, in fact, logical opposites. Many of the prosecution theories we used were novel.

At various times this included convertible bonds, preferred stock, high-yield bonds, collateralized loans, equity-linked instruments, securitized obligations and derivatives. In a September Financial Times column, Norman Barry, professor of social and political theory at the University of Buckingham, wrote:. Then, in the late ’80s, equity market values rose above the replacement costs of such balance-sheet assets as plants and equipment for nilken first time in 15 years.

So the department managed to coerce Milken to plead guilty to trivial offenses.

michael milken wharton thesis

Confidence in Drexel did not erode as a result of tgesis litigation, and Drexel’s financial position was strong enough to withstand the fines the government demanded. The SEC simply fined 98 brokerage firms and banks for Milken-like technical reporting violations. In the early days, Milken worked long and hard out of Philadelphia and, later, New York, as a bond analyst, researching more than 2, issues — many of them the downgraded bonds of ailing conglomerates. Milken was coerced into a plea bargain involving trading violations elevated into felonies Programs and contributions by the Milken Family Foundation have made a difference in the battle against several grave conditions, including breast cancer and epilepsy.

Furthermore, the filing for Chapter 11 bankruptcy protection does not necessarily mean the end of the firm. Steven Rosenberg, who reported a major breakthrough in the development of successful gene therapy that for the first time in history harnesses the body’s own immune system to shrink tumors; Dr.