Scandals / Wall Street

Bruck, Connie. The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders. New York: Penguin Books, 1989. 399 pages.

This book, originally published in 1988 by Simon and Schuster, was the first to blow the whistle on Michael Milken. Connie Bruck, a staff writer for the New York Times, worked on it for two and a half years, and interviewed almost 300 people. Fred Joseph, CEO at Drexel, agreed to cooperate with Bruck in February, 1986 -- a time when the business press universally admired Drexel for their ability to turn junk into gold. Drexel felt unassailable, and for months Bruck kept scribbling while they kept bragging. Then in November, 1986, Ivan Boesky pleaded guilty to insider trading and Drexel circled their wagons. Milken offered Bruck $250,000 not to publish the book, while Milken's attorney Arthur Liman (remember Iran-contra?) obtained a copy of the manuscript despite Simon and Schuster's security precautions, and planned an all-out counterattack with the help of Linda Robinson and her PR firm.

Bruck says that when she started this book, her sympathies were more with Milken than with the corporate establishment that Milken was attacking. It was her willingness to be driven by the evidence that caused Jason McManus, Time Inc.'s editor in chief, to regard this book as "the finest piece of business investigative journalism since the turn-of-the-century muckrakers, Lincoln Steffens and Upton Sinclair."


Copetas, A. Craig. Metal Men: Marc Rich and the 10-Billion-Dollar Scam. New York: Harper & Row (Perennial Library), 1986. 224 pages.

Marc Rich started as a "metal man," a specialized form of commodity trading that deals in mineral resources. Of the eighty natural metals in the earth, forty are of industrial importance, and are bought and sold on the open market by traders. Innocent investors speculate on price fluctuations, while the metal men -- known for their wheeling and dealing -- might bribe foreign officials, start market rumors, or play tricks on other traders. Marc Rich did all of the above and more, and made $10 billion in the process. He started in 1954 at Philipp Brothers Trading, and by the 1970s was making huge profits for them by venturing into the spot oil market. At the end of 1973 he and Pincus (Pinky) Green left to form their own empire. They hired away some of Philipp Brothers' more aggressive traders -- the young high- rollers who thrived on cocaine and casual sex in the fast lane. Operating from New York, London, and Switzerland, Rich was in a league where one country is played off against another, with shadowy deals washed through Panamanian shell companies and dripped into off-shore banks. In the early 1980s, the U.S. went after Rich for tax evasion and oil-pricing scams. But as of 1994, he was living comfortably in Zug, Switzerland, where he is so important to the local economy that the Swiss legal system still refuses to extradite him.

Stein, Benjamin J. A License to Steal: The Untold Story of Michael Milken and the Conspiracy to Bilk the Nation. New York: Simon & Schuster, 1992. 221 pages.

Benjamin J. Stein's coverage of Michael Milken and Drexel was the first to reveal the extent of the junk bond problem. By the time this book was published, Milken was nearly out of jail -- his expensive lawyers had already convinced the judge to lessen his sentence from ten years to two years. Stein began noticing Milken and Drexel in the mid-1980s, received a death threat from a Drexel hotshot in 1988, and was trashed a few years later in a book by Jesse Kornbluth -- a biography arranged by Milken's publicist Ken Lerer that claimed Milken wasn't really interested in money.

Stein is a lawyer, an economist who knows finance, a good writer, and someone who has a social ethic that goes beyond private profiteering. He might be the only such person in America who can get an occasional book published. He compares Milkenism to organized crime in its "use of underworld tactics of the con and the shakedown, the swindle and the heist, in the world of finance on a national and international scale." If the gruff, cagey Mafia hoods who testified at the Kefauver hearings in 1950 had been slick enough to work in "legitimate" business instead of street-corner gambling and loan-sharking, how much more money would they have been able to make? "Now we know," writes Stein. (page 187)


Stewart, James B. Den of Thieves. New York: Simon & Schuster, 1991. 494 pages.

In the early 1960s, students at UC Berkeley spent their summers registering black voters in the south; in 1964 they started the Free Speech Movement and in 1969 it was People's Park. But in 1986 Berkeley seniors voted to invite Ivan Boesky to speak at their commencement. Boesky, who had never been to college, looked up from his text and said, "Greed is all right, by the way. I want you to know that. I think that greed is healthy. You can be greedy and still feel good about yourself." The students broke into spontaneous applause.

Boesky, at the time worth $130 million, was convicted of insider trading. He helped finger Michael Milken, who was worth $700 million when he was released from prison after serving two years of a ten-year sentence. Meanwhile the 1986 class is having trouble finding jobs, and when it comes time for them to invest in their children's education, a good portion of their income will still be paying for the S & L deficit -- which was partially caused by Milken's junk-bond trading. It all fits.

Den of Thieves is basically a biography of Boesky, Milken, Dennis Levine, and Martin Siegel -- all convicted for Wall Street crimes. Author James Stewart, an editor at the Wall Street Journal, makes Oliver Stone look like he was guilty of understatement in his movie "Wall Street."

Here are the names most frequently mentioned in the above books:

    ACKERMAN PETER     ALEXANDER NORMAN E     ALLIANCE CAPITAL ACCESS     ALTMAN EDWARD     AMIR PAUL     ANDERSEN G CHRISTIAN     ANREDER STEVE     ARIANO BILL     ASQUITH PAUL     AUERBACH MARTIN J     AYLWARD DAVID K     BAIRD BRUCE A     BALSER DONALD     BECK JEFFREY     BELZBERG HYMAN     BELZBERG SAMUEL     BELZBERG WILLIAM     BERGERAC MICHEL C     BILGER ARTHUR     BLACK ELI M     BLACK LEON D     BLINDER MEYER     BLUHDORN CHARLES G     BLUME MARSHALL     BLUMENTHAL W MICHAEL     BOESKY IVAN FREDERICK     BOLLAG BEN     BOSSIDY LAWRENCE A     BOYLAN MICHAEL     BRANT PETER     BRILL STEVEN     BROSENS FRANK P     BROWN DAVID (GOLDMAN SACHS)     BRUCK CONNIE     BRUMBERGER ALAN     BUFFETT WARREN EDWARD     BUFORD ANTHONY JR     BURNHAM I.W. II (TUBBY)     BUSCH KLAUS     CAMERON DORT III     CANNELLA JOHN     CARBERRY CHARLES     CARR FRED     CARROLL JOHN (U.S.ATTORNEY)     CAUSEY CHARLES     CAYWOOD JAMES     CECOLA RANDALL     CHEMICAL BANK     CLORE ALAN E     COCHRAN SUSAN     COGUT CRAIG     COHEN CLAUDIA     CONSIDINE FRANK     CONTINENTAL CONNECTOR     CONWAY STEPHEN J     COPETAS A CRAIG     CORRIGAN E GERALD     COSS LAWRENCE M     CURNIN THOMAS     DAHL JAMES     DAMATO ALFONSE M (R-NY)     DAVIDOFF MICHAEL     DAVIS MARTIN S     DAVIS MARVIN HAROLD     DE NUNZIO RALPH     DEMANGET GERARD     DICK MORTY     DIKKO ALHAJI UMARU     DILLER BARRY     DINGELL JOHN D (D-MI)     DOLAN BEVERLY F     DOONAN THOMAS     DOVE GUY     DRAPKIN DONALD     DREW RICHARD (MERRILL LYNCH)     DREXEL BURNHAM LAMBERT     DUVAL ALBERT     ENGEL DONALD     ENGELHARD CHARLES W     EPSTEIN EDWARD JAY     FALLAH REZA     FARDELLA JESS     FARLEY WILLIAM FRANCIS     FEDDERS JOHN M     FLACKS ALAN     FLEISCHER ARTHUR     FLOM JOSEPH H     FLORENTINO CARLO     FLUMENBAUM MARTIN     FORBES MAGAZINE     FORSTMANN THEODORE J     FRAIDIN STEPHEN     FREEMAN ROBERT (GOLDMAN SACHS)     FREILICH JOSEPH     FRIEDMAN MILTON     FRIEDMAN WILLIAM (N.Y.LAWYER)     FUSS ALBERT     GARCIA TONY     GARDINER PETER     GEBAUER ANTONIO     GENEEN HAROLD SYDNEY     GENTRY GRANT     GILDER GEORGE F     GITTIS HOWARD     GIULIANI RUDOLPH W     GLASER DONALD (VICTOR POSNER LAWYER)     GLEACHER ERIC     GLUCK HENRY     GLUCKSMAN LEWIS     GOBHAI CAVAS     GOLDBERG ARTHUR H     GOLDING FAITH     GOLDSMITH JAMES MICHAEL     GOLDSMITH JERRY     GOOD DANIEL     GORDON ALBERT HAMILTON     GORDON JOHN (KIDDER PEABODY)     GOULET VICTOR     GRANT JAMES (INTEREST RATE OBSERVER)     GRASSGREEN RICHARD J     GREEN PINCUS (PINKY)     GREENHILL ROBERT F     GROTE PETER     GUTERMAN GERALD     GUTFREUND JOHN H     HACHEUL JACQUES     HACKEL ALEXANDER     HALE WILLIAM (PRINCETON-NEWPORT PARTNERS)     HAMMERMAN STEPHEN L     HARRIS IRA     HEYMAN SAMUEL J     HICKMAN WALTER BRADDOCK     HILL J.TOMILSON III     HMW INDUSTRIES INC     HOFFMAN ROBERT     HOROWITZ HARRY     HURWITZ CHARLES E     HUTTON HUBERT     ICAHN CARL CELIAN     IGOROV YURI     INGERSOLL RALPH II     IRANI RAY R     JACOBS IRWIN L     JAQUITH PETER     JEFFERIES BOYD L     JENSEN MICHAEL C (HARVARD)     JESSELSON LUDWIG     JONES LISA ANN     JOSEPH FREDERICK H     JOSEPH STEPHEN (DREXEL)     KAMINER DANIEL     KANTOR EDWIN     KAPLAN MARK N     KATZ GEORGE     KAY DAVID (DREXEL BURNHAM LAMBERT)     KEATING CHARLES H JR     KEIM DONALD     KERKORIAN KIRK     KINGSLEY ALFRED     KISSICK JOHN     KISSINGER HENRY A     KLUGE JOHN WERNER     KNAPP CHARLES (TRAFALGAR HOLDINGS)     KORNBLUTH JESSE     KOSTELANETZ BORIS     KRANTZ ROBERT     KRAVIS HENRY R     KROLL JULES     LAW WARREN     LEE DOUG     LERER KENNETH     LESSMAN LANCE     LEUTERT JUERG     LEVINE DENNIS B     LEVINE THEODORE A     LEVITAN IDA     LEVY GUSTAVE L     LEVY PAUL (INVESTMENT BANKER)     LEWIS REGINALD F     LEWIS SALIM B (SANDY)     LICHTENSTERN ROBBIE     LIMAN ARTHUR L     LINDNER CARL HENRY JR     LINTON ROBERT     LIPTON MARTIN     LITT ROBERT S     LOCKWOOD HADLEY     LOOMIS WILLIAM     LORENZO FRANK     LTV CORPORATION     LYNCH GARY G     MAGOWAN PETER ALDEN     MALANOWSKI MARY LOU     MANSFIELD MIKE J (D-MT)     MANTELL EDMOND O.H.     MARKS HOWARD (TRUST COMPANY WEST)     MAUI ABOLFATH     MAULTASCH CARY     MAY PETER W     MAY WILLIAM FREDERICK     MCCARTHY FRED (DREXEL BURNHAM LAMBERT)     MCCAW ROBERT     MCGOWAN WILLIAM GEORGE     MEIER BERNHARD     MELTZER CLYDE     MENDEL PERRY     MEYER RALPH     MILKEN LOWELL JAY     MILKEN MICHAEL ROBERT     MIZEL LARRY     MOGIN DANIEL J     MOORADIAN SETRAG     MULHEREN JOHN A     MURDOCH RUPERT     MURDOCK DAVID HOWARD     NAGLE REID     NATIONAL ASSOCIATION INSURANCE COMMISSIONERS     NEWBERG BRUCE L     OBERMAIER OTTO     OPPENHEIM STEVEN     PAUL DAVID L     PECORA FERDINAND     PEDOWITZ LAWRENCE     PEISER ROBERT     PEIZER TERREN     PELTZ NELSON     PERELMAN RONALD OWEN     PERETZ MARTIN     PESONEN EERKI     PHILIPP BROTHERS TRADING     PHILLIPS GENE E     PICKENS T BOONE     PISKORA JOHN     PITT HARVEY L     PLETSCHER BRUNO     POLLACK MILTON     POLLACK MOSELLE     POSEN FELIX     POSNER VICTOR     RAINWATER RICHARD EDWARD     RAKOFF JED     RATLIFF DAVID     RAUCH MICHAEL     REGAN JAMES     REICH ILAN     REZAI ALI     RICH MARC DAVID     RIFKIND SIMON H     RIKLIS MESHULAM A     RITCH HAL     ROBINSON LAKE LERER MONTGOMERY (PR FIRM)     ROBINSON LINDA GOSDEN     ROCHA RODRIGO     ROCHE JOHN THOMAS     ROHATYN FELIX GEORGE     ROMANO BENITO     ROMANO ROBERT     ROSS STEVEN J     ROYCE STEVE     RUBIN ROBERT EDWARD     RYAN PETER (RICHCO SUGAR)     SACHS PETER     SALERNO ANTHONY (FAT TONY)     SALSBURY ROBERT     SAND LEONARD B     SANDLER RICHARD     SATO STEVE     SCHENLEY DISTRIBUTORS     SCHERER F M     SCHNALL MELVIN ELLIOT     SCHNEIDERMAN IRWIN     SCHROEDER JULIAN     SCHWARTZ FRED     SHAD JOHN S.R.     SHAGARI ALHAJI SHEHU     SHENKER MORRIS     SHENKMAN MARK     SIEGEL MARTIN A     SIGOLOFF SANFORD C     SILBERSTEIN BEN     SIMON WIESENTHAL CENTER     SIMON WILLIAM EDWARD     SLATKIN MURIEL     SOKOLOW IRA     SOLOMON DAVID B     SOLOMON PETER (SHEARSON LEHMAN)     SONNENTHAL PETER     SORTE JOHN     SOSNOFF MARTIN     SOUTHMARK INC     SPIEGEL ABE     SPIEGEL THOMAS     SPIER PAUL     SPURGE LORRAINE     STEIN BENJAMIN J     STEINBERG SAUL PHILLIP     STEINER JEFFREY J     STELZEL WALTER     STONE ROGER WARREN     STRAUSS AUDREY     STROHOTTE WILLI     STURC JOHN     SULLIVAN FRED R     TABOR TIMOTHY L     TEAMSTERS UNION     TENDLER DAVID     THORP EDWARD     THURNHER CHARLES     TISCH LAURENCE ALAN     TISCH PRESTON ROBERT     TREPP WARREN     TROLAND JOHN     TROTTMAN STANLEY     TSAI GERALD     TURNER TED     UNICOAL CORPORATION     UNITED BRANDS COMPANY     WALSH LEO     WALTER JAMES (WHARTON SCHOOL)     WANG LEONARD (LEO)     WANNISKI JUDE     WASSERSTEIN BRUCE     WATERS STEVE     WEDVICK PEER     WEINBERG SANDY     WEINGARTEN REID H     WEINGARTEN ROBERT I     WEINROTH STEPHEN     WEKILI HUSHANG     WIGTON RICHARD     WILKIS ROBERT     WILLIAMS EDWARD BENNETT     WILSON WILLIAM A     WINNICK GARY     WIRTH TIMOTHY E (D-CO)     WOLLMAN JACK     WOLSTENCROFT FRANK     WYATT OSCAR S JR     WYNN STEPHEN ALAN     ZADORA PIA     ZAIDNER DAVID     ZARZECKI CHARLES     ZAX STANLEY     ZELL SAMUEL

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