Part 3: Chapter 16, The Center Cannot Hold Summary and Analysis

Drexel knew they had a problem after Boesky Day. The firm was hated by many on Wall Street. The arrogance of many of their staff was working against them. The government didn't have evidence against Drexel but they were still under the strain of the investigation. It was pretty much accepted that Milken and Drexel's days of hostile takeover and Milken's raising hundreds of millions of dollars in a few days were coming to an end. Drexel's power began to ebb. It abandoned its plan to move to Seven World Trade Center. The bonds that were traded were not in the massive amounts as in earlier days and more precise records of trading activity were being kept now. Some of the investment partnerships at Drexel were closed.

Drexel lost the blue-chip...