Part 1: Chapter 3, Transformation Summary and Analysis

Milken tells Drexel Burnham Lambert that he wants to move his bond operation unit to Los Angeles in 1978 since both he and his wife were from that area. He also wanted some distance between himself and some of his higher ups. This move would cost the firm millions of dollars and it would be harder for the firm to keep tabs on Milken. Since Milken was responsible for almost all of the firm's profits, they couldn't say no to him. Not only did Milken make the move to the West Coast, he convinced most of his staff to make the move to Los Angeles. These staff members were millionaires because of working for Milken; they weren't about to not go with.

Milken and his wife made the trip to California via car. While they were enroute, the...