Drexel and Michael Milken Are Charged with Insider Trading
At a glance:
- Series: Great Events from History II: Business and Commerce Series
- Categories: Economics, Crime, Law, Legal History, Courts
- Subcategories: Business, Scandals, Corruption, Fraud
- Curriculum: American History 1951-present
- Geographical Location: New York City
- Date: 1988
Article abstract: In 1988, Drexel Burnham Lambert was charged with insider trading, beginning a chain of events that included the firm’s declaration of bankruptcy and incarceration of its star investment banker, Michael Milken.
Summary of Event
During the 1970’s, the United States experienced inflation and economic stagnation. The prices of common stocks gyrated wildly but on average wound up about where they were in the late 1960’s. Meanwhile, earnings and dividends rose steadily. Because of inflation, the underlying values of many companies...
[The entire page is 2592 words long]
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