Drexel Blasts Regulators: Drexel Burnham Lambert Inc....
From Times Staff and Wire reports
Drexel Blasts Regulators: Drexel Burnham Lambert Inc. accused thrift regulators of inventing and exaggerating some of the government’s $6.8 billion in damage claims against the collapsed Wall Street firm. In papers filed in Manhattan federal court, Drexel also accused the Federal Deposit Insurance Corp. and Resolution Trust Corp. of seeking to blame the former junk-bond pioneer for the savings and loan industry collapse. The agencies contended last month that Drexel contributed to the failure of more than 40 thrifts by fraudulent sales of risky high-yield bonds. Drexel said the regulators’ actions were threatening to derail its bankruptcy reorganization and jeopardize its negotiations with creditors.
