Howard Baker Not Moving to Wall St.--Drexel Talks End
Former White House Chief of Staff Howard H. Baker Jr. and Drexel Burnham Lambert Inc. ended talks on Baker taking a senior position at the investment firm, apparently after Drexel’s enthusiasm for the idea had cooled.
The possibility of Baker taking the chairmanship or some other high-level position at Drexel ended Tuesday after the former U.S. senator had a 45-minute meeting in Washington with Frederick H. Joseph, Drexel’s chief executive, one source said. Joseph has been in Washington while the firm negotiates with the Securities and Exchange Commission on settling civil fraud and insider trading charges.
Focus on Chairmanship
Drexel issued a one-sentence statement late Wednesday, saying that “by mutual agreement, talks looking toward Sen. Baker joining Drexel Burnham Lambert have been ended, and the senator will not be taking a position with the investment banking firm.”
The firm has never officially said what position was under consideration. But sources have said the talks focused mainly on the chairmanship. One source said Wednesday that a large faction at Drexel had emerged in strong opposition to Baker’s appointment, in part because he is mainly a politician and lawyer with little experience in the securities field.
Baker is also said to have decided against taking any job at the firm because it was made clear to him this week that he would be given little if any real authority. The source said Baker concluded Tuesday that if he were given the chairmanship it would have been mainly a figurehead position.
Drexel has never stated why it was considering Baker for a top position. But after the talks were disclosed in November, there was widespread speculation that Baker had been picked to improve the firm’s tarnished public image.
In addition to the pending SEC charges, Drexel last month announced plans to settle an expected federal criminal case by paying $650 million in penalties and pleading guilty to six felony counts.
Remain at Law Firm
A Drexel official and Tom Griscom, a spokesman for Baker, both denied that the decision to end discussions had anything to do with the status of Drexel’s settlement talks.
Griscom said Baker now plans to remain at his Knoxville, Tenn., law firm, Baker, Worthington, Crossley, Stansberry & Woolf. He said Baker is also considering several other offers to serve on corporate boards.
Robert E. Linton, Drexel’s current chairman who has expressed a desire to retire to his ranch in New Mexico, will remain in his position for the time being.
