never saw, you just heard. it was milken s genius that created an entire market and fueled this takeover phenomena. we romanticize these characters. the fact of the matter, these are fat cats, first cousins to the financial manipulators, the robber barons of the late 19th century. they re trying to make a buck by doing nothing and putting people out of work. economists agree that some unemployment, some hardship is unavoidable in making the united states lean and mean again. but the takeover specialists call it corporate restructuring. corporate america needs some kick now and then to become a little more efficient and less entrenched. and that will probably do our economy a lot of good. thursday, goodyear fended off a hostile takeover bid but victory didn t come cheap. goodyear won by buying back
that kills him politically, but saves america economically. listen carefully to this number. $500 billion. that s the latest estimate of what the failure of hundreds of federally insured savings and loans will eventually cost american taxpayers. mr. keating, did you make bail? no questions. the once rapid growth of keating s failed lincoln savings and loan in california, the majority of bonds bought by seniors, many losing their life savings. charles keating was convicted in two trials, but both of those verdicts were overturned, and then he pled guilty to avoid a retrial and was allowed out for time served. the climate had gone from celebrating the excesses of wall street to condemning them pretty quickly. tonight s headline, milken pleads guilty in what may be the
of course, boesky was guilty. there was going to be no defense. all he had was bargaining power. who could he deliver? levine was a fish, boesky was a shark. who is the whale they re going to catch? i don t know. drexel burnham? well, that s possible. in the middle of all this is drexel burnham lambert. until two years ago a little known wall street firm. it specialized in so-called junk bonds. high interest but also high risk. drexel and the head of its junk bond department michael milken made a deal with ivan boesky to make millions of dollars illegally. california company wicks was planning a takeover. boesky bought the stock before it went up, shared the profits with milkens firm, but milken betrayed his client, charged a million-dollar fee and secretly
milken whispered that to boesky. boesky bought the stock before it went up, shared the profits with milkens firm, but milken betrayed his client, charged a million-dollar fee and secretly earned $6.5 million more at the clients expense. authorities are worried that further disclosures resulting from the boesky affair may weaken public confidence in financial markets and weaken the markets themselves. just came from inside. it looks like a mad house. i guess the bull market s over. it s a blood bath down there. they re calling it the monday massacre. the worst drop in history. i call it the nearest thing to a meltdown i ever want to see. by the closing bell, the dow jones industrial average was down more than 500 points. this is a crash people hadn t seen since the great depression. no one had seen the stock market fall that quickly, that fast. paper losses of more than $500 billion. october 18, 1987, wall street s black monday.
private talks for three months. and wall street big shots begin wetting their well, you get the idea. of course, boesky was guilty. there was going to be no defense. all he had was bargaining power. who could he deliver? levine was a fish, boesky was a shark. who is the whale they re going to catch? i don t know. drexel burnham? well, that s possible. in the middle of all this is drexel burnham lambert. until a few weeks ago, a well-known wall street firm. it specialized in so-called junk bonds. high interest but also high risk. drexel and the head of its junk bond department michael milken made a deal with ivan boesky to make millions of dollars illegally. california company wicks was planning a takeover.