Drexel Burnham
Drexel Burnham was a prominent brokerage house where Michael Milken built his junk-bond fortune. It was involved in the financial operations of the Iran-Israel Joint Committee's slush fund, which was used to finance various covert activities and...
Drexel Burnham was a prominent brokerage house where Michael Milken built his junk-bond fortune. It was involved in the financial operations of the Iran-Israel Joint Committee's slush fund, which was used to finance various covert activities and political initiatives.
Large amounts of money from the arms sales to Iran, along with profits from earlier deals, were held at various interest rates by Drexel on behalf of Israeli front companies after being funneled through American banks. These large deposits contributed to Drexel's stature and helped underwrite huge quantities of junk bonds.1
In 1987, the Iran-Israel Joint Committee decided to withdraw its funds from Drexel and from the control of Menachem Schneerson (Lubavitcher Rebbe). This decision was influenced by concerns that the funds might be frozen if relations between Israel and the U.S. deteriorated, and it contributed to Milken's growing troubles and ultimately to the fall of Drexel.1
Sources
- Ben-Menashe, Ari. Profits of War: Inside the Secret U.S.-Israeli Arms Network. TrineDay, 1992. ↩
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