Frederick H Joseph

The New York Stock Exchange announced disciplinary action Wednesday against Frederick H. Joseph, former chief executive of Drexel Burnham Lambert, including a censure and a two-year ban on serving as a supervisor or manager at any stock exchange member firm.

Former Drexel Chief Suspended for 3 Years: Frederick H. Joseph, former chief executive of Drexel Burnham Lambert Inc. during the rise and fall of Michael Milken, has agreed to a three-year suspension from any management role in the securities industry. The agreement is part of a settlement with the Securities and Exchange Commission and concludes the last investigation by regulators into Joseph's relationship with Milken and the downfall of Drexel.

Former Drexel Chief Suspended for 3 Years: Frederick H. Joseph, former chief executive of Drexel Burnham Lambert Inc. during the rise and fall of Michael Milken, has agreed to a three-year suspension from any management role in the securities industry. The agreement is part of a settlement with the Securities and Exchange Commission and concludes the last investigation by regulators into Joseph's relationship with Milken and the downfall of Drexel.

The New York Stock Exchange announced disciplinary action Wednesday against Frederick H. Joseph, former chief executive of Drexel Burnham Lambert, including a censure and a two-year ban on serving as a supervisor or manager at any stock exchange member firm.

Frederick H. Joseph Settles With Regulators: The former chief executive of Drexel Burnham Lambert Inc. agreed to pay the government more than $3 million to settle a civil suit for losses suffered by the nation's failed savings and loans. The Federal Deposit Insurance Corp. and the Resolution Trust Corp., charged with cleaning up the failed savings institutions, announced the agreement in a statement.

Drexel Burnham Lambert Inc. is requiring interested bidders for its 1,100-member retail brokerage unit to promise not to raid the department for one year if a deal falls through, Wall Street sources said Wednesday. One firm said it refused to join the bidding because of the strict terms being applied by Drexel, which announced a major restructuring Tuesday amid ongoing negative publicity following two major securities fraud settlements. Also Wednesday, the head of a state securities committee monitoring Drexel said dumping the retail brokerage could save Drexel the embarrassment of having its securities license stripped in many states.

Drexel Burnham Lambert confirmed Friday that it may be disciplined by the New York Stock Exchange, and sources said the punishment may include a fine of up to $25 million and possible action against Chief Executive Frederick H. Joseph and other top executives. The Big Board is said to be intent on imposing punishment even though the brokerage closed down and has been liquidating since its parent company, Drexel Burnham Lambert Group, filed for bankruptcy proceedings in February.

Moving swiftly to reorganize in the wake of its recent legal problems, Drexel Burnham Lambert said it will sell its retail brokerage operations and focus exclusively on its core businesses, including "junk bonds," general investment banking services and bond and stock trading for institutional investors. The decision was discussed in a weekend meeting of Drexel's board of directors and disclosed for the first time Tuesday when Frederick H. Joseph, the firm's chief executive, went on Drexel's public address system.

Drexel Burnham Lambert put its main brokerage unit and 14 other subsidiaries into bankruptcy proceedings Tuesday and named John F. Sorte, 42, to succeed Frederick H. Joseph as chief executive of the brokerage. Drexel also confirmed that the company plans to reorganize and emerge from bankruptcy proceedings as a going concern, although much smaller and with limited activities. Until recently, Drexel officials had said the entire company would be liquidated.

Frederick H. Joseph Settles With Regulators: The former chief executive of Drexel Burnham Lambert Inc. agreed to pay the government more than $3 million to settle a civil suit for losses suffered by the nation's failed savings and loans. The Federal Deposit Insurance Corp. and the Resolution Trust Corp., charged with cleaning up the failed savings institutions, announced the agreement in a statement.

A key accord on turning over information about Michael Milken and other former employees of Drexel Burnham Lambert Inc. smoothed the way for the proposed settlement that is expected to bring a speedy end to the firm's bankruptcy, lawyers involved said Monday. The settlement, first announced Friday, was hailed as a model compromise brought about by Milton Pollack, a strong-willed U.S. District Court judge determined to avoid years of litigation.

Frederick H. Joseph, Drexel Burnham Lambert's former chief executive, confronted Michael Milken in court Tuesday for the first time and implied that Drexel's longtime star employee had lied to him. Joseph also seemed to damage Milken's case in pre-sentencing hearings by stating that Milken had violated written company rules on ethics.

Prosecutors said they expect to call former Drexel Burnham Lambert Chief Executive Frederick H. Joseph to testify Monday, after a day of hearings Friday in which government witnesses failed to back up allegations of bribery by Michael Milken. Defense lawyer Arthur L. Liman also told a judge that Milken himself may testify during the coming week.

Drexel Burnham Lambert put its main brokerage unit and 14 other subsidiaries into bankruptcy proceedings Tuesday and named John F. Sorte, 42, to succeed Frederick H. Joseph as chief executive of the brokerage. Drexel also confirmed that the company plans to reorganize and emerge from bankruptcy proceedings as a going concern, although much smaller and with limited activities. Until recently, Drexel officials had said the entire company would be liquidated.

Might Drexel Burnham Lambert rise like a phoenix from the ashes of its bankruptcy? The odds are heavily against it. But Drexel's management and lawyers for the first time have raised the possibility that the firm might emerge from Chapter 11 proceedings and go back into business in some form. "It's one of several things we're considering," Drexel spokesman Steven Anreder said. "We haven't made a decision yet." Until now, Drexel has said the entire company would be liquidated.