Part 1: Chapter 6, The Air Fund Summary and Analysis

Milken's employees weren't the only ones benefiting from doing business with him. Customers were becoming quite wealthy because of doing business with Milken. Fred Carr of First Executive and Thomas Spiegel of Columbia Savings and Loan were two such people. Carr signed-on with Milken as soon as Milken was located in California buying two-thirds of all the junk bonds that Drexel sold that year. Carr continued to buy Drexel offerings and made First Executive into a sound and innovating company with assets of $12 billion within ten years.

Spiegel's father bought the Beverly Hills based Columbia Savings and Loan in 1974 when it was in trouble, and like many thrifts Columbia experienced more problems during the 1970s and 1980s. In order to help out the thrifts, Congress enacted legislation allowing them to make commercial loans...