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Sandler: Wall Street establishment targeted Milken after Drexel enabled hostile takeovers

Richard Sandler · Richard Sandler – The Prosecution of Michael Milken (EP.372) · Mar 4, 2024 · at 22:34

Richard Sandler explains why Michael Milken became the focus of federal scrutiny in the late 1980s.

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“So Mike was an attractive target because he really wasn't liked by a lot of people in the business round table and in the established firms. He was getting a lot of publicity. He was very successful. And so people complained to the SEC, they complained to Congress”

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More from Richard Sandler

Assertion Not checkable as stated
Sandler: Prosecutors threatened to destroy Princeton Newport unless it aided Milken prosecution
“The prosecutors at the time had told the principals and the lawyers for Princeton Newport that they're going to run over them. They're going to destroy them unless they help them against Michael Milken and another Case that was under investigation at the time,…”
Richard Sandler Mar 4, 2024 ▶ 37:38 Richard Sandler – The Prosecution of Michael Milken (EP.372)
Assertion Partly supported
Sandler: Milken pled to violations never previously criminally prosecuted
“We actually found things to plead to, none of which had ever been subject to criminal prosecution before, many of which hadn't probably even been enforced as regulatory violations before, but we found things that he could admit to.”
Richard Sandler Mar 4, 2024 ▶ 42:57 Richard Sandler – The Prosecution of Michael Milken (EP.372)
Assertion Contradicted
Sandler: Judge assessed market damage from Michael Milken's violations at zero
“Interesting enough, when the judge assessed the economic damage to the marketplace from everything Michael pled to, included on the three counts that related to Bosque, that the total economic effect of these violations was zero. Not one penny was lost.”
Richard Sandler Mar 4, 2024 ▶ 46:31 Richard Sandler – The Prosecution of Michael Milken (EP.372)
Assertion Supported
Sandler: Drexel collapsed after funding unsold inventory with commercial paper
“What had happened is, to prove they could still get deals done, they were taking a lot of securities that they couldn't sell into inventory, and they were financing it by issuing commercial paper in the commercial paper market. So in financial parlance, they w…”
Richard Sandler Mar 4, 2024 ▶ 48:34 Richard Sandler – The Prosecution of Michael Milken (EP.372)
Assertion Supported
Sandler: Milken received a 10-year sentence via consecutive two-year terms
“And she gave him a ten-year sentence, which number one, negated what we thought was a cap of five years. Because she gave him two years on five counts to Z serve consecutively, not concurrently.”
Richard Sandler Mar 4, 2024 ▶ 53:31 Richard Sandler – The Prosecution of Michael Milken (EP.372)
Assertion Contradicted
Sandler: Milken's sentencing judge told parole commission no further wrongdoing was proven
“The judge who sentenced Mike, who held the Fatico hearing, wrote a letter to the parole commission on Mike's behalf, indicating that she held the Fatico hearing, and she did not believe that any further wrongdoing other than what he pled to could be shown, eve…”
Richard Sandler Mar 4, 2024 ▶ 56:53 Richard Sandler – The Prosecution of Michael Milken (EP.372)
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