August 16, 1991 |
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.
April 20, 1989 |
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.
May 5, 1990 |
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.
April 19, 1989 |
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.
May 30, 1990 |
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.