Milken, Michael R.
born July 4, 1946, Encino, Calif., U.S.U.S. financier and entrepreneur.He studied at the University of Pennsylvania's Wharton School and went to work in 1969 for what was to become Drexel Burnham Lambert Inc., an investment-banking company. In 1971 he became head of its bond-trading department. He persuaded many of his clients to invest in junk bonds issued by new or financially troubled companies; the capital he raised financed a new class of "corporate raiders" who carried out numerous mergers, acquisitions, hostile takeovers, and leveraged buyouts in the 1980s. By the end of the decade, the junk-bond market was worth $150 billion, and Drexel was a leading financial firm. In 1986 its client Ivan Boesky, convicted of insider trading, implicated Milken and the firm in his dealings. Charged with securities fraud and heavily fined, Drexel declared bankruptcy in 1990 when the junk-bond market collapsed. Milken pled guilty to securities fraud the same year and was sentenced to 10 years in prison and a $600-million fine; released after 22 months, he since made a second fortune.
* * *▪ American businessmanin full Michael Robert Milkenborn July 4, 1946, Encino, California, U.S.American financier whose “junk-bond” operations fueled many of the corporate takeovers of the 1980s.Milken studied business at the University of California, Berkeley, graduating in 1968. In 1969, while studying at the University of Pennsylvania's Wharton School of Finance, he began working at the Drexel Firestone banking firm, which soon afterward merged with Burnham & Company to form what became Drexel Burnham Lambert Inc., a major investment banking company. In 1971 Milken became head of Drexel Burnham's bond-trading department. He saw great potential in the neglected area of “junk bonds”—i.e., non-investment-grade bonds that were typically issued by smaller, newer companies or by established firms whose fortunes had soured. Though junk bonds earned substantially higher rates of return than did investment-grade bonds, they were also regarded as more liable to default and hence were considered too risky by the large institutional investors—savings and loan associations, pension funds, insurance companies, and mutual funds—that provided American corporations with much of their investment capital. Milken's studies showed that junk bonds had acceptable default rates for their higher yield, and he began persuading a growing number of institutions to buy them.By 1984 Drexel Burnham was able to raise large amounts of capital by floating new issues of junk bonds, which Milken used to provide financing for a new class of entrepreneurs and “corporate raiders” to expand their businesses or acquire other companies. Milken's vast and increasingly powerful junk-bond network fostered the “merger mania” of the 1980s, in which his clients, partners, and allies, among others, engaged in a wave of corporate mergers, acquisitions, hostile takeovers, and leveraged buyouts. By the end of the 1980s, the junk-bond market had grown to $150 billion in size, and Drexel Burnham had become one of the leading financial firms in the United States. Milken's own operations accounted for at least half of the firm's profits, and his salary jumped from $25,000 in 1970 to $550 million in 1987—the highest annual compensation up to that time.In 1986, however, one of Drexel's clients, Ivan Boesky, was convicted of insider trading, and he implicated Milken and Drexel Burnham Lambert in his illegal financial dealings. In 1988 both Milken and Drexel Burnham were charged with securities fraud. Drexel reached a settlement with the government later that year, agreeing to pay $650 million in fines, and Milken left the firm in 1989. Without Milken's controlling hand, his network of junk-bond issuers and buyers fell apart, and soon afterward the junk-bond market collapsed, which led to Drexel Burnham's bankruptcy in 1990. Milken pleaded guilty to six counts of securities fraud that same year; he was sentenced to 10 years in prison, ordered to pay fines totaling $600 million, and permanently barred from engaging in the securities business. He began payment toward approximately $1 billion in fines and settlements in 1991. In 1993 his sentence was reduced to time served.Following his release from prison, Milken joined his brother Lowell in founding the Milken Institute for Job and Capital Formation, an independent economic think tank. After a battle with prostate cancer, Milken established the Association for the Cure of Cancer of the Prostate in 1993 and expanded his work with charitable organizations. In the same year he launched FasterCures, a think tank based in Washington, D.C., which sought to evaluate and improve systems of prevention, research, and treatment for deadly and debilitating diseases. He founded Knowledge Universe, Inc., a consumer and business education company, in 1996. In 1998, without admitting guilt, Milken returned $47 million in earnings after the Securities and Exchange Commission (SEC) charged that he had violated the 1990 order barring him from doing business in the securities industry. In 2007 he launched the Melanoma Research Alliance, a public charity.
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MILKEN, MICHAEL R. — MILKEN, MICHAEL R. (1946– ), U.S. investor, philanthropist. Nicknamed the junk bond king, Milken, by using a little noticed financial tool, transformed corporate takeovers and financing in the 1970s and 1980s, amassing great personal wealth –… … Encyclopedia of Judaism
Milken, Michael R. — (n. 4 jul. 1946, Encino, Cal., EE.UU.). Financista y empresario estadounidense. Estudió en Wharton School, Universidad de Pensilvania. En 1969 empezó a trabajar en la empresa que se convertiría en la institución bancaria de inversiones Drexel… … Enciclopedia Universal
Milken, Michael — (1946–) American financier … Bryson’s dictionary for writers and editors
Michael Milken — Born Michael Robert Milken July 4, 1946 (1946 07 04) (age 65) Encino, California, U.S. Conviction(s) … Wikipedia
Michael Robert Milken — Michael Milken Michael Robert Milken (* 4. Juli 1946, in Encino, Kalifornien) ist ein US amerikanischer Finanzier und Investmentbanker, der in den 1970er Jahren einer der Hauptbeteiligten bei der Schaffung des Junk Bond Marktes war ( The Junk… … Deutsch Wikipedia
Michael Milken — Michael Robert Milken (* 4. Juli 1946, in Encino, Kalifornien) ist ein US amerikanischer Finanzier und Investmentbanker, der in den 1970er Jahren einer der Hauptbeteiligten bei der Schaffung des Junk Bond Marktes war ( The Junk Bond King ). 1989… … Deutsch Wikipedia
Michael Milken — en mai 2006 Naissance 4 juillet 1946 Encino … Wikipédia en Français
Milken Community High School — Coordinates: 34°07′31.91″N 118°28′40.38″W / 34.1255306°N 118.4778833°W / 34.1255306; 118.4778833 … Wikipedia
Michael — /muy keuhl/, n. 1. a militant archangel. Dan. 10:13. 2. Rumanian, Mihai /mee huy /. born 1921, king of Rumania 1927 30, 1940 47 (son of Carol II). 3. (italics) a narrative poem (1800) by Wordsworth. 4. a male given name. * * * I In the Bible and… … Universalium
Michael — (as used in expressions) Bennett, Michael Michael Bennett Difiglia Bishop, J(ohn) Michael Coetzee, J(ohn) M(ichael) Cohan, George M(ichael) Collins, Michael Curley, James Michael Curtiz, Michael DeBakey, Michael (Ellis) Douglas, Michael Dummett,… … Enciclopedia Universal