Drexel Burnham

About Drexel Burnham

Drexel Burnham Lambert was a Wall Street investment bank that pioneered the junk bond market under Michael Milken. Milken built a market for high yield bonds, financing companies that could not access investment grade markets. Drexel financed leveraged buyouts including the 25 billion RJR Nabisco deal. The firm was charged with securities fraud and insider trading in 1988. Drexel pleaded guilty to six felonies and paid 650 million in penalties. The firm filed for bankruptcy in February 1990. Milken was sentenced to 10 years in prison, served 22 months, and paid 1.1 billion in fines and settlements. He later became a philanthropist focusing on education and medical research.