When Bad Things Happen to Rich People Summary and Analysis

Two weeks after Perelman's take-over bid the author is instructed that Salomon Brothers' new priority is junk bonds. The first transaction is a bridge loan with Goldman Sachs for the period between Southland Corporation management's $4.9 billion buyout of 7-Eleven stores and the sale of Southland Corporation junk bonds to pay back the loan. Michael's success with Olympia & York assures him the reputation to be able to sell these bonds too. Salomon's junk bond specialists assure him it is a good investment, since they have the most to gain or lose. Michael breaks his resolution to not sell things people should not buy within months. Gutfreund is convinced he can show Salomon to be a force on the market and the Southland junk is his example. Michael is required to...