Den of Thieves

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Den of Thieves Page 67

by James B. Stewart


  Dresner, Milton, 236

  Drew, Richard, 269–71

  Drexel Burnham Lambert, 17, 21, 53–54, 56–58, 63–65, 115–21, 130–32, 151, 160–63, 187, 201, 222, 227–29, 240–41, 284–85, 306, 319, 330, 333, 336, 338, 341, 344–45, 360, 363, 365, 366, 368, 369–75, 376–77, 384, 387, 390, 394–95, 404, 409–13, 418, 436–40, 450–52, 455, 458–60, 464, 466–67, 478–79, 522, 523, 525, 526, 531, 532–33

  bankruptcy of, 505–7, 527

  Boesky-Milken arrangement and, 214–15

  brokers fired by, 499–500

  congressional investigation of, 444, 445

  decline of, 499–507

  defections from, 499

  Diamond Shamrock deal and, 212

  factional tension within, 245–46

  Harris Graphics takeover and, 219–20

  “highly confident” letter of, 133–34, 136–37, 156, 222, 470

  high-yield conferences of, see Predators’ Ball

  history of, 48–49

  Joseph hired by, 48–51

  junk bond minicrash and, 505–6

  junk bonds celebrated by, 416

  “leak thesis” of, 346–47

  lobbying by, 255–56

  media blitz mounted by, 346, 414–17

  Milken sued by, 521

  National Can deal and, 126–30

  NYSE investigation of, 129

  Otter Creek partnership and, 128

  Pacific Lumber-Maxxam deal and, 216–17

  post-settlement deals of, 498–99

  Princeton-Newport and, 406–8

  private investigator hired by, 491

  RJR deal and, 470–71, 476, 480

  SEC investigation of, 431–34

  SEC plea negotiations of, 482–83

  SEC settlement of, 497

  SEC suit filed against, 462

  settlement offer rejected by, 477–78

  Staley deal and, 245–46

  success of, 244–46, 258–59

  U.S. Attorney’s negotiations of, 472–74

  U.S. Attorney’s plea agreement with, 480–81

  Viacom and, 432–33see also specific individuals

  Drexel Firestone, 48

  du Pont, 98

  DWG Corp., 119

  Dyson-Kissner-Moran Corporation, 91

  Eastman Kodak, 338

  Easton, Sheena, 497

  Edwards & Hanly, 42–43

  E. F. Hutton, 31, 50, 92, 162, 254, 299, 313, 371, 393, 401, 553n

  Eichenwald, Kurt, 441

  Eisenberg, Lew, 530

  Elf Aquitaine, 81, 82, 84–85

  Engel, Donald “Donny,” 120, 127, 246, 259–60, 414, 454, 481, 497, 511

  Drexel’s rehiring of, 414

  high-yield conferences and, 135–38

  Joseph’s confrontations with, 130–31, 473–77

  Milken and, 120, 131–32, 414

  nickname of, 120

  Posner and, 121, 130

  Epstein, Edward J., 416–17, 441

  Esquire, Inc., 294

  Evans, John, 256

  Evans, Robert, 116

  Executive Life Insurance Co., 67, 122, 124, 500

  Fardella, Jess, 373, 404, 458, 466, 469, 486–87, 508, 509–11, 512, 516

  Farley, William, 120–21, 138, 259, 415, 498, 499, 504

  Farley Industries, 121

  Farnsworth & Hastings, 118

  Far West Financial Services, 504

  “Fatico” hearings, 559n

  Fedders, John, 79, 272

  Federal Bureau of Investigation (FBI), 334

  Federal Communications Commission, 232–33

  Federal Deposit Insurance Corporation, 521

  Federal National Mortgage Assoc., 25

  Federal Reserve Board, 418, 506

  Federated Department Stores, 501

  Fidelity mutual fund, 135

  Financial Corporation of America, 67, 227

  Financial Corporation of Santa Barbara, 227–29, 319

  Finsbury Fund, 257, 342, 458, 489, 512

  Fireman’s Fund, 395

  First Boston, 25, 26, 33, 73, 108, 111, 124, 133, 155, 172, 173, 245, 248, 258, 470, 501

  First Executive Corporation, 130, 257, 521–22

  First Manhattan, 42

  First Penn Bank, 59

  Fischbach Corporation, 121–22, 214, 236, 332, 370, 461, 511, 542n

  Fischer, Paul, 286–87, 288, 292

  Fishbein, Peter, 453–54

  Fiske, Robert B., Jr., 492

  Flans, Allen, 223

  Fleischer, Arthur, 31, 285

  Fleming, Peter, 365, 366, 369, 376, 460, 463, 478–79, 482

  Flom, Joseph, 31, 32, 108, 112, 137, 138, 155, 255, 297

  Florentino, Carlo, 92, 317, 353

  Flumenbaum, Martin, 305–6, 307, 309, 365, 367, 447, 449, 461, 463, 465, 486, 489, 509, 510, 512, 517

  Fogelson, James, 147

  Forbes, 520

  Ford, Gerald, 97

  Forstmann, Theodore, 37, 115, 173–74

  Forstmann Little, 173–74

  Fortune, 172–74, 176, 178, 188, 190, 320, 442, 530

  Fraidin, Stephen, 47, 98, 103, 105, 228, 339

  Franklin, Roland, 161

  Fraysse, Jean-Pierre, 86, 93, 278

  Freeman, Robert, 142–43, 204, 215, 304–5, 333, 345, 353, 355, 357, 360, 379, 390, 393, 403, 404, 408–9, 412, 417, 425, 431, 437, 453, 463, 469, 484, 485, 491, 492, 496, 507, 530, 531

  arraignment of, 384, 389

  arrest of, 380–81, 387, 392

  background of, 174–75

  Beatrice deal and, 201–2, 434–35, 493–96

  case dismissed against, 398–99, 402

  Coniston deal and, 193–94

  Goldman, Sachs support of, 385, 397

  government errors and, 385–86

  guilty plea of, 495, 545n, 546n

  on incriminating tape, 412

  indictment of, 395–96

  Macy deal and, 199

  resignation of, 495

  Ritch and, 189–90

  SCA deal and, 185–89, 391

  sentencing of, 515–16

  Siegel’s relationship with, 178, 181–89, 194–95, 196–200, 254

  Storer deal and, 194–97, 405–6

  Unocal deal and, 197–99

  Wall Street Journal article on, 434

  Fried, Frank, Harris, Shriver & Jacobson, 31, 47, 98, 228, 264, 278, 279, 285, 292–93, 294, 326–27, 329, 338

  Friedman, Stanley, 326, 330, 398

  Fruit-of-the-Loom, 415, 498

  Fuller, Vincent, 449, 466–67

  Gable, Clark, 58

  GAF, 222, 388

  Gage, Robert, 425, 426

  Garcia, Beatrice, 346

  Gardiner, Peter, 432–33, 461

  G. D. Searle, 145

  GE Credit Corporation, 401

  GE Financial Services, 390–91

  Geneen, Harold, 259

  General Electric, 252, 506, 527

  DeNunzio as viewed by, 393

  Giuliani reassured by, 394

  Kidder, Peabody acquired by, 390–94

  Kidder, Peabody restaffed by, 400–401

  Wigton suspended by, 397

  General Foods, 21, 199, 286, 393

  Getty, Gordon, 165

  Getty, J. Paul, 165

  Getty Oil, 165, 167, 171

  Gibson Greetings, 97

  Gilder, George, 533

  Gillette, 413

  Gilman, David, 443

  Giuliani, Rudolph, 291, 308, 326–27, 330, 338, 379, 380, 383, 396, 397–98, 401, 402, 404, 405, 434, 462, 466, 468–69, 472, 480, 482, 484, 512

  Baird appointed by, 404

  GE’s reassurance of, 394

  Kidder, Peabody meeting of, 391–93

  Lynch’s dispute with, 436–38

  methods of, 288–90

  on “Nightline,” 443

  press conference held by, 384

  Princeton-Newport raid approved by, 409

  public success of, 398–99


  Romano’s replacement of, 485

  Glanzer, Seymour, 368, 376–77

  Gleacher, Eric, 88, 133, 142, 144, 154, 155–56, 159, 244, 246

  Criton deal and, 91–92

  practical joke by, 89–90

  Gluck, Henry, 260

  Glucksman, Lewis, 142

  Gobhai, Cavas, 133

  Goettel, Gerard, 317–18

  Golden Nugget, 213–14

  golden parachutes, 34

  Goldfarb, Sheldon, 318

  Goldman, Sachs, 25, 26, 31, 33–34, 48, 87, 132–34, 142–44, 178, 182, 183, 185, 192, 194, 197, 200, 203, 234, 235, 244–45, 246, 254, 259, 308, 311–12, 333, 345, 358, 379, 383, 387, 392, 394–95, 402, 404, 412, 470, 491–94, 500

  Freeman’s resignation from, 495

  Freeman supported by, 385, 397

  “gray list” of, 187

  public denial of wrongdoing issued by, 386

  “restricted lists” of, 175

  Goldsmith, James, 137, 138, 154, 158, 182–84, 186, 187, 260

  as Levine’s role model, 159–61

  Gollust, Keith, 193–94, 197

  Good, Daniel, 299

  Goodson, Peter, 173, 360–61, 391

  Goodyear, 18, 253

  Gordon, Albert R., 25, 26, 30, 35, 36, 108, 178, 179, 189, 192, 247, 250–51

  Gordon, John, 30, 189, 191–93, 251–52, 391, 401

  Gosden, Freeman, 438

  Gould Inc., 31, 166, 236

  Grace, Peter, 259

  Granados, Frank, 270

  Granite Capital, 530

  Graphic Scanning, 254

  “gray list,” 187

  Great Atlantic & Pacific Tea Co., 30

  Greed and Glory on Wall Street (Auletta), 142

  Greenberg, Alan C. “Ace,” 206

  “greenmail,” 115, 127, 181–82, 187, 232, 256

  Groupe Bruxelles Lambert, 472, 479

  Guinness PLC, 551n–52n

  Gulf + Western, 30, 135, 230–34, 236, 294, 332–33, 422, 425, 514

  Gulf Oil, 101, 105–6, 118, 171, 180–81, 182, 195

  Gulton Industries, 234–35

  Guterman family, 264–65

  Gutfreund, John, 245

  Hadley Lockwood, 154, 155

  Haft, Herb, 120

  Haft family, 361

  Hagman, Larry, 255

  Haifa Chemical Co., 498

  Hale, William, 406–7, 409, 411, 436, 449, 490

  Hall, Fawn, 458

  Hammer, Armand, 63

  Hammerman, Stephen, 269

  Handros, Joseph, 391, 392, 393

  Hanson, Mark, 436

  Harmon, Reed, 489

  Harris, Ira, 31, 32

  Harris Corp., 217

  Harris Graphics, 218–19, 220, 233

  Harvard Club, 109–10, 159, 225

  Hayden Stone, 50

  “Heard on the Street” column, 179

  Helms, Jesse, 232

  Hennig, Jeffrey, 19

  Hepburn, Katharine, 116

  Hercules Inc., 141

  Herlihy, Edward, 315–16

  Heron International, 235

  Heyman, Samuel, 107, 222, 259, 388

  Hickman, W. Braddock, 53

  “highly confident” letter, 133–34, 136–37, 156, 222, 470

  Hill, J. Tomilson, III, 73, 75–76, 77, 84, 152, 155

  Levine and, 73–76, 86, 89, 90–91

  nickname of, 79

  Hitachi, 365, 553n

  HMW Industries Inc., 142, 143–44

  Hofer, Max, 269, 270, 271–72

  Hoffa, Jimmy, 363

  Hoffman, Robert, 245

  Horowitz, Harry, 223, 481

  hostile takeovers, 29, 31–32

  “PacMan” defense and, 112–13

  House Oversight and Investigations Committee, 347, 444

  House Subcommittee on Telecommunications, Consumer Protection, and Finance, 256

  Houston Natural Gas, 158

  Hovanian, 416

  Hudson Funding, 237, 238, 338, 370

  Hundley, William, 368, 458, 459

  IBM, 97, 521

  Icahn, Carl, 115, 130, 137, 138, 171, 229, 230–32, 259, 330, 332, 338, 344, 413, 422, 514

  ICH Corporation, 501

  Illinois Tool Works, 400

  Ingersoll, Ralph, 259, 442–43, 504

  Ingersoll Communications, 508

  Institutional Investor, 203, 242

  Integrated Resources, 499–501, 503

  Interallianz Bank of Switzerland, 236

  Internal Revenue Service, 350, 407, 408

  International Capital Access Group, 497

  International Controls Corporation, 199

  Internorth, 158

  Iran-Contra scandal, 365, 458

  Irani, Ray, 211, 260

  Irell and Manella, 64

  Itek Corporation, 141

  Ivac Corporation, 34

  Ivan F. Boesky Co., 40, 43, 45, 338

  Ivan F. Boesky Corp., 41, 46, 98, 102, 115, 116, 234, 237, 238

  Ivan F. Boesky Limited Partnership, 237

  I. W. Harper, 48

  Jackson, Jesse, 468

  Jacobs, Irwin, 120, 259

  Jamie Securities, 206, 429

  Jefferies, Boyd, 184, 323, 330, 332, 333–34, 338, 344

  Boesky’s stocks “parked” by, 394–95

  guilty plea by, 394

  Jefferies & Co., 102, 333

  Jefferies Group, 394

  Jefferson National Life Insurance, 86

  Jewel Companies, 145–46

  Jewish Theological Seminary, 171–72, 420

  Johnson, Lyndon B., 363

  joint defense agreement, 366

  Jones, Day, Reavis & Pogue, 403

  Jones, Lisa Ann, 408–10, 434–37, 449–50, 462, 489–90

  Joseph, Frederick H., 48, 124, 128, 130, 156, 215, 236–37, 242–43, 253–55, 259–60, 337, 353, 369, 378, 411, 415, 433, 436, 444, 448, 452, 456, 461, 477–81, 485, 490, 497, 558n

  background of, 50–51

  Boesky and, 117–18

  bonus pool and, 243–44

  Cogut and, 465

  congressional testimony of, 445

  Curnin’s cab ride with, 465–66, 471

  Drexel’s decline and bankruptcy and, 504–7

  Drexel-SEC settlement and, 497

  Drexel’s post-settlement deals and, 499–500

  Drexel-U.S. Attorney negotiations and, 472–74

  Engel’s confrontations with, 130–31, 473–77

  Fischbach deal and, 124–25

  high-yield conferences and, 134–37, 138

  Kay and, 132

  Liman and, 474–75

  Lynch and, 296, 372, 482

  Milken and, see Milken, Michael

  Millstein hired by, 413–14

  Posner doubted by, 121

  press and, 244

  Princeton-Newport tapes heard by, 462

  RJR deal and, 470–71

  secret taping of, 476

  Siegel and, 247–50, 354, 360

  Staley deal and, 245

  Texas International and, 57

  Joseph, Steven, 245–46

  “junk” bonds, 53, 58, 66, 67, 134, 135–36, 256, 522, 524–25, 529

  alternate investments contrasted with, 503

  Drexel celebration of, 416

  minicrash of, 503–5, 520

  1987 crash and, 417–19, 520

  Justice Department, U.S., 97, 265, 287, 288, 289, 291, 293, 295–96, 325, 331, 341, 404, 471, 485

  plea agreements as negotiated by, 559nsee also U.S. Attorney’s office

  Kalb Voorhis, 42

  Kalikow, Peter, 235

  Kantor, Edwin, 49, 56, 57, 130, 243, 472, 479

  Kathy (Siegel’s secretary), 18, 387, 389

  Kaufman, Augie, 295

  Kaufman, Steve, 509

  Kay, David, 56, 116, 133, 138, 157, 159, 160, 162, 229, 246, 248, 252, 253, 254, 285, 296–97, 298

  on Boesky, 370

  Joseph and, 132

  Levine as
seen by, 155–56, 158

  Levine’s bonus interview with, 163

  Kaye, Scholer, Fierman, Hays & Handler, 383, 404, 453, 492

  Keating, Charles, 66, 237, 242, 522

  Kekst, Gershon, 388

  Keller, Henry, 37

  Kelly, Donald, 200

  Kerkorian, Kirk, 260

  Kerr-McGee, 81, 82, 84–85

  Kidder, Henry, 25

  Kidder, Peabody & Co., 18, 25, 35, 37, 107–8, 110, 112, 144, 164, 170, 176, 189, 190–91, 193, 202–3, 204, 247, 255, 360–61, 374, 379, 381, 382, 383, 385, 396–97, 495–96, 506, 527, 528

  arbitrage department created by, 180–81

  in Atlantic article, 176

  Beatrice deal and, 202

  Continental deal and, 182–85

  Disney deal and, 181–82

  financial difficulties of, 178–81, 247–48

  Fortune article and, 172–74

  GE purchase of, 252

  GE restaffing of, 400–401

  GE takeover of, 390–94

  Giuliani meeting of, 391–93

  history of, 26–27

  personnel exodus from, 401

  public denial of wrongdoing issued by, 386

  retainer arrangement of, 32–33

  St. Regis deal and, 187–89

  SEC charges settled by, 400–401

  Socal deal and, 181–82

  Storer deal and, 195, 198

  King, Alan, 101

  Kinkead, Gwen, 172, 174

  Kirby Vacuum Cleaners, 229

  Kissick, John, 56, 133, 460, 472, 474, 477, 479, 480, 498, 505

  Kissinger, Henry, 192

  Kluge, John, 259

  Knapp, Charlie, 67

  Knopfli, Hans, 282–83

  Kohlberg, Jerome, 120, 200

  Kohlberg Kravis Roberts, 115, 143, 168, 195–97, 200–202, 208, 215, 222, 224, 384, 388, 435, 463, 470–71

  Kramer, Levin, Nessen, Kamin & Frankel, 301, 394

  Krantz, Robert, 179, 391, 392, 393, 394, 400

  Kravis, Henry, 115, 195, 196, 200–201, 215, 259, 388, 470–71, 493, 530, 553n

  Kroll, Jules, 346, 491, 513

  Kroll Associates, 491–92

  Kuhn Loeb, 26

  Labor Department, Louisiana, 416

  Lamas, Fernando, 116

  Lasker, Morris “Bunny,” 201, 420–21, 435, 491

  Lautenberg, Frank, 256

  Lawler, Andrew, 382, 400

  Lawyers’ Club, 99

  Lazard Frères, 31, 74, 77, 78, 79–80, 82, 141, 148, 149, 156–57, 158, 203, 308, 309–10, 312

  Lear Siegler, 18, 253, 255

  LeBow, Bennett, 499

  Lee, James E., 168–69

  Lehman Brothers, 26, 55, 59, 87, 88, 133, 140, 141, 142, 143, 144, 147, 149, 150, 306

  Shearson acquisition of, 151

  Lenox Inc., 166, 171

  Lerer, Kenneth, 440–42, 443, 446–47, 490, 498, 508, 510, 516

  Lessman, Lance, 39, 45–48, 101–2, 117, 169, 172, 174, 211, 241, 262–64

  Leval, Pierre, 515

  Levine, Dennis B., 20, 22, 219, 246, 252–54, 255, 274, 291, 304–5,307–8, 316–17, 320–22, 323, 325, 332, 340, 348, 357, 361, 365, 383, 403, 412, 429, 438, 452, 489, 507, 530–31

 

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