Michael Milken

from Wikipedia, the free encyclopedia
Michael Milken (2006)

Michael Robert Milken (* 4. July 1946 in Encino , California ) is an American financier and investment banker , who in the 1970s one of the main parties involved in the creation of the market for high-yield bonds (English junk bonds , hence his nickname " The Junk Bond King "). In 1989 he was jailed for financial fraud.

biography

Milken was born in Encino, California into a middle-class Jewish family. He earned a bachelor's degree with honors from the University of California at Berkeley and an MBA from the Wharton School . His fellow students there were Sally Field and Cindy Williams .

During his MBA, Milken did research on high yield bonds issued by companies with poor credit ratings. Despite the higher returns, few investors were willing to invest in these bonds. Milken's research indicated that the return was still above average even when compared to the higher risk, and later as an investment banker he was able to build a large market for these bonds.

In 1993, Milken developed prostate cancer , which was stopped by androgen withdrawal therapy and radiation.

Since then, Milken has been fighting cancer and campaigning for education.

Also in 1993 he founded the non-profit organization Prostate Cancer Foundation (PCF), in 2003 he founded the non-profit organization Faster Cures / The Center for Accelerating Medical Solutions , which supports the organization Patients Helping Doctors , which was founded in 2004 . The latter organization helps sufferers to donate tissue samples for research databases.

Together with his brother Lowell and the Oracle boss Larry Ellison , he founded the education group Knowledge Universe in 1996 .

Success on Wall Street

From January 1969 Milken worked for the New York investment bank Drexel Harriman Ripley, after their merger for Drexel Burnham Lambert . He was responsible for high yield bonds and generated ROI of up to 100%. In 1976 he had an estimated income of $ 5 million a year. In 1978 Milken moved his department to California.

Milken expanded the high-yield high-yield bond business at Drexel Burnham Lambert and was one of the triggers for the large number of leveraged buyouts in the 1980s. The trust placed in him enabled him to place extensive bonds on the financial markets for his customers. He contributed significantly to the business success of Drexel Burnham Lambert . The company earned $ 4 billion in fees in 1986 and was America's most profitable investment bank. In the same year, Milken received $ 550 million in salary and bonuses.

In June 1989, Milken retired from Drexel and started his own company, International Capital Access Group.

Financial fraud

In 1989, New York District Attorney Rudolph Giuliani charged Milken with financial fraud in federal court under the RICO Act ; however, this has not yet led to a conviction.

After further investigation, Milken agreed to plead guilty on five counts and pay a $ 200 million fine. More 400 million US dollars he paid for comparisons in civil cases . He was banned from trading in securities for life. In 1998, he fined the SEC another $ 47 million for violating the lockdown as a consultant to MCI and Revlon . He was not prosecuted for advising on the takeover of Turner Broadcasting System by Time Warner , for which he received a fee of $ 50 million.

Milken was originally sentenced to 10 years in prison, but was released in January 1993 after 22 months in prison.

Others

In 1991, Milken founded the Santa Monica- based Milken Institute, an independent business think tank .

Milken is the winner of the satirical Ig Nobel Prize in the “ Economy ” category (1991).

Milken's personal fortune was by Forbes in September 2018 3.7 billion US dollars estimated 606 which he was ranked the richest people in the world.

He is married and has three children.

Web links

swell

  1. ^ New York Review of Books: "The Golden Age of Junk by Roger E. Alcaly May 26, 1994
  2. ↑ Los Angeles Times: "Milken's Largess Slows Down: Donations: The junk bond king's charitable trusts have virtually stopped growing since his 1989 federal indictment" by James F. Peltz September 15, 1992
  3. ^ The Jewish Telegraph : "Zuckerberg among nine new Jewish individuals and families to take the Giving Pledge" by Jacob Berkman ( Memento of the original from March 11, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. December 10, 2010 @1@ 2Template: Webachiv / IABot / blogs.jta.org
  4. ^ The Jewish Journal : "Bush should pardon Mike Milken" by Dean Rotbart December 18, 2008
  5. ↑ MANHATTAN, INC: "The Secret World of Mike Milken" by Edward Jay Epstein September 1987
  6. ↑ UC Berkeley Inter-Fraternity Council: Sigma Alpha Mu ( Memento of the original from November 19, 2007 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.calgreeks.com
  7. ↑ http://www.forbes.com/asap/2001/0910/064.html
  8. ^ Profiles: Michael Milken . Forbes . Retrieved September 19, 2018.

literature

  • James B. Stewart: Club of Thieves , Frankfurt / M. and Berlin, Ullstein, 1992, ISBN 3-550-06580-9
personal data
SURNAME Milken, Michael
ALTERNATIVE NAMES Milken, Michael Robert (full name)
BRIEF DESCRIPTION American financier and investment banker
DATE OF BIRTH 4th July 1946
PLACE OF BIRTH Encino , California