The Predators’ Ball (59 page)

Beverly Hills headquarters of,
80

Beverly Hills Savings suit against,
116
–17

bonuses paid by,
247
–48

California branch opened by,
50
–53

charter of,
206

Chinese wall of,
306
–8

client concerns and,
65
,
67
,
163
,
177

commitment letters used by,
107
,
165
–66,
182

corporate finance group of,
48
–49,
63
–69,
88
,
98
,
247
,
250
,
298
,
302
,
307

corporate finance investment

partnership in,
68
,
299
–300

creativity of,
135

default on “highly confident” letter of,
182

ebbing power of,
333
–43

“equitize” slogan at,
269

equity of,
66
–67,
69
–70,
246
,
288
–289,
306
,
314

in financial scandals,
254
–55

formation of,
48

franchise arrangement of,
10
–11

globalization of,
243
–44,
251
–52

Gobhai as consultant for,
62
–66,
100
–101,
163
,
176
,
245
,
296
,
299
,
344

as god,
244
–48

Green Tree lawsuit against,
291
,
292

growth of,
80
,
246
–47

“highly confident” letter of,
101
,
106
–7,
166
,
167
,
182
,
221
,
250
,
251
,
290
,
304
,
344

high-yield mutual fund of,
see
HITS

imitators of,
248
,
275

internecine rivalries in,
88
,
299
–301,
340
–41

“Joseph doctrine” of,
170
,
171

LBO group of,
100
,
163

market share of,
248

medium-size companies and,
13
,
49
,
347
–50,
357
,
358

merchant banking of,
66
,
248
,
249
–50

Milken's title at,
84

1983 junk offerings of,
78
–80

Political Action Committee of,
259

political influence of,
258
–60,
264
–65

principal-mindedness of,
59
,
66
,
67

profits of,
19
,
51
,
64
,
80
,
98
,
231
,
247
–48

public company debate and,
69

public-relations compaign of (1987),
348
–50

side deals of,
74

Special Planning Committee of,
74

stability of,
269
–70

stock of,
69
–70,
206
,
247
,
253

Third World debt project of,
254
–255

3 (a) 9 deals of,
76
–77,
135
,
209
,
331

Underwriting Assistance Committee (UAC) of,
72
,
131
,
235
,
304
–7,
351

underwriting default rate of,
77

“war chests” of,
19
,
117
,
163
,
164
,
169
,
180
,
185
,
202

as well-rounded firm,
251
–52,
253

whatever-it-takes-to-win credo of,
341

World Trade Center headquarters of,
252
,
333

yin/yang of Milken operation in,
57

Drexel Firestone,
23
–24,
27
–31,
43
,
51
,
271

Drexel Harriman Ripley,
24
–27

decline of,
26
–27

lineage of,
26

securities-delivery system of,
25
–26

Drexel High Yield Bond Conference (1979),
11
–12

Drexel High Yield Bond Conference (1983),
95

Drexel High Yield Bond Conference (1984),
206

Drexel High Yield Bond Conference (1985),
see
Predators' Ball (1985)

Drexel High Yield Bond Conference (1986),
182
–83,
257
–59,
291
,
302

Drexel High Yield Bond Conference (1987),
328

Dreyfus and Company,
151
,
156

Dunmore Partners Ltd.,
81

Duval, Albert,
156
–58

DWG,
122
–23,
124
,
139

Eagleton, Thomas F.,
171

Eckel, Lee,
259

Economic Recovery Tax Act (1981),
97

Economist
,
270
–71

Edersheim, Maurits,
87

EGM Partners,
300

EJ Associates,
81

Encino, Calif.,
53
–54,
80

encounter groups (T-groups),
62

Engel, Donald,
15
,
18
,
116
,
117
,
123
,
125
,
135
,
183

forced resignation of,
15
,
337
–39,
340
–42

in Japan,
243

Joseph's reinstatement of,
338
–42

Posner and,
121
,
123
,
338
,
340

Prime Capital Associates and,
231
–32

Revlon battle and,
208
,
218
,
220
,
230
,
231
–32

Englewood Partners,
328

Enterprise Fund,
89

entertainment,
16
,
60
,
230

equity,
45
,
66
–67,
69
–70,
156
,
325

in Beatrice buyout,
250

of Drexel,
66
–67,
69
–70,
246
,
288
–289,
306
,
314

Icahn's views on,
163

in leveraged buyouts,
99
,
107
,
108

in National Can deal,
107
,
108

Perelman's views on,
236

in Phillips deal,
167

preferred stock as,
265

of Revlon,
216
,
221
,
225

risk and,
131

tax law and,
263

equity buyers, bond buyers vs.,
73

ESB,
96

Evans Products,
124
,
125
,
128
,
139

exchange offers,
66
,
309
–10,
312
,
346

carrot-and-stick vs. buy-back,
76

registered,
75

in Revlon battle,
216
–17,
224
–25,
226
,
228

unregistered,
75
–77,
124

Executive Life,
167
,
280

Exxon,
272

fallen angels (“deep-discount bonds”),
27
,
38
,
44
,
119
,
346

Farley, William,
14
,
109
,
135
,
163
,
201

Farley Industries,
17

Far West Financial Services,
168

Federal Bureau of Investigation (FBI),
72

Federal Election Campaign Act,
259

Federal Home Loan Bank Board,
92
,
115
,
280

Federal Reserve,
37
,
211
,
212
,
215
,
264
–65,
266

Federal Savings and Loan Insurance Company,
115
–16

FGIC (Financial Guarantee Insurance Company),
283

Fidelity,
47

FIFI (First Investors Fund for Income),
33
,
46
–47,
56

Financial Corporation of America,
131

Financial Corporation of Santa Barbara,
343

Financial Guarantee Insurance Company (FGIC),
283

Finneran, Gerald,
353

Finsbury,
277
–78

Firestone Tire and Rubber Company,
27
,
30

First Boston Corporation,
30
,
95
,
248
,
250
,
253
,
325

First City Financial,
168

First City Properties,
168

First Executive,
83
,
89
–90,
92
–94,
124
,
272
,
276
,
277
,
281
,
311

Atlantic Capital compared with,
280

First Investors Asset Management,
94
,
277

First Investors Fund for Income (FIFI),
33
,
46
–47,
56

First Oak Financial Corporation,
280

First Stratford,
93
,
281

Fischbach,
321
–24,
352

Fitzpatrick, Dennis,
115

Flagstaff,
110
,
111
,
112
,
160

“flexible balance sheet,”
75

Flight Transportation,
72
–73,
306

Flom, Joseph,
101
,
122
,
157
,
196
,
206
,
208
,
226

Fomon, Robert,
41

food business,
109
–11

Forbes
,
58
,
70
,
124
,
155
,
209
,
270
,
272
–73,
322

Ford Motor Company,
42

Forstmann, Theodore,
222
,
226

Forstmann Little and Company,
99
,
219
–28,
231

Fortune
,
335
–36

14D documents,
133

Foxfield (Icahn estate),
189
,
190

Fraidin, Stephen,
319

Frates, Joseph,
195

Frates group,
195
–96

fraud,
72
,
199
–200

Freeman, Robert,
328
–29

Freilich, Joseph,
151
,
152
,
153
,
156

Freund, James,
106
,
182

Friday, John,
43

Fried, Frank, Harris, Shriver and Jacobson,
317

Friedland, Joel,
15

Fruehauf bonds,
345

Fuqua Industries,
44

Fuss, Albert,
214
,
277

Future Shock
(Toffler),
246

futures market,
251

Gable, Clark,
53

GAF,
181
,
213
,
233
,
245
,
275
–76,
287
–88

Wickes compared with,
295

Galef, Andrew,
265

gambling operations,
58
–60

Gandhi, Mohandas K.,
357

Gardiner, Nancy,
236

Gam-St. Germain Depository Institutions Act (1982),
91

Garrison Capital Corporation,
280
,
284

Gateway Advisers,
83

GBL (Groupe Bruxelles Lambert S.A.),
206
,
323

Gebauer, Antonio,
254
–55

Gelson's (Encino supermarket),
53

Geneen, Harold,
194
–95,
220
,
239

General Electric,
256

General Felt Industries,
79

General Foods,
48
,
221

General Motors,
94
,
96

Gentry, Grant,
202
–3,
220

Germaine Monteil,
234

Getty, Ann,
236

Getty Oil,
164

Giant
(movie),
271

Gibson Greetings deal,
99

Gillette Company,
234
,
333

Gittis, Howard,
197
,
202
,
212
,
214
–215,
224
,
232
,
237

Glaser, Donald,
128
–29

Glass-Steagall Act (1934),
26

Gleacher, Eric,
101
,
208
–9,
217

GLJ (Milken investment partnership),
81
,
82

Gluck, Henry,
308

Glucksman, Lewis,
48

Gobhai, Cavas,
62
–66,
100
–101,
149
,
163
,
176
,
245
,
296
,
299
,
344

Goldberg, Arthur,
112
–14,
118