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The Drexel Connection at Global Crossing (How the firm's alumni helped launch the telecom startup )
BusinessWeek ^ | MARCH 11, 2002 | By Christopher Palmeri in Los Angeles, with Mark Clifford in Hong Kong and Mike McNamee in Wash.

Posted on 03/02/2002 4:49:21 PM PST by jern

Edited on 04/13/2004 2:16:30 AM PDT by Jim Robinson. [history]

A swanky office in Beverly Hills, brash investment bankers scoring hundred-million-dollar paydays, a spectacular collapse ending in federal investigations. The belly flop of Global Crossing Ltd. seems remarkably similar to the saga of Drexel Burnham Lambert Inc., the investment bank that imploded a dozen years ago. In fact, it may be more than coincidence. At least five key players in the startup of Global Crossing were prominent executives at Drexel.


(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: alert; cibc; dbl; garywinnick; globalcrossing; leonblack; likashing
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Comment #41 Removed by Moderator

To: terilyn
As if we didn't get enough of Drexel during the S&L crisis.
42 posted on 03/16/2002 12:31:09 AM PST by Carry_Okie
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To: Black Jade
Does "insider trading" ring a bell?

{{{{{{b-r-r-r-i-i-i-n-n-n-g-g}}}}}

Do the math - Li family actually has a majority position in Husky Oil due
to Li Ka-shing's being one of CIBC's largest individual shareholders.

43 posted on 03/16/2002 3:56:24 AM PST by Liz
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To: Registered
Is the lack of bumps for this thread an indication that FReepers don't care?
Maybe a ticker for the # of times an article is viewed?
Then everyone would know whether folks saw it and had no comment to make or simply never came through the door to start with.
I visit a lot of threads myself and never make comments. I'm probably more atypical than others. I care about a lot of the issues I read about, but it is always hard swimming against the current, and I've been swimming against the current for a while and am tired of trying with no results.
44 posted on 03/16/2002 7:34:50 AM PST by philman_36
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To: terilyn
The house apparently will be taking this up next week.

I could care less about the house or the senate, I want to see the FBI and SEC do their job and then turn this over to the same group that has taken Arthur Andersen off of the map in the Justice Department!

45 posted on 03/16/2002 11:36:01 AM PST by Grampa Dave
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To: terilyn
The house apparently will be taking this up next week.

I could care less about the house or the senate, I want to see the FBI and SEC do their job and then turn this over to the same group that has taken Arthur Andersen off of the map in the Justice Department!

46 posted on 03/16/2002 11:37:42 AM PST by Grampa Dave
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To: Black Jade
bump
47 posted on 03/16/2002 5:36:35 PM PST by mafree
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To: Grampa Dave
I totally agree with you. I was trying to be cynical. :^)
48 posted on 03/16/2002 8:00:21 PM PST by terilyn
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To: philman_36
"I care about a lot of the issues I read about, but it is always hard swimming against the current, and I've been swimming against the current for a while and am tired of trying with no results."

Thanks for the encouragement. It does get very 'trying' and needs 'new blood' from time to time. After taking the 'BCCI Report' to my Congressman's office(He wasn't in Congress during the S&L debacle) and trying to 'light fires' under some people, it became burdensome. Hope to see you 'back in the wars' soon, philman_36. Appreciate your taking a few minutes off from 'lurking' to let us know you are.

A lot of the BCCI 'players' are very much active in the 'Global (Double) Crossing' shenanigans.

49 posted on 03/16/2002 8:13:04 PM PST by d14truth
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To: d14truth
Appreciate your taking a few minutes off from 'lurking' to let us know you are.
Thank you. I'm never really too far away though I may appear to be. I'll admit that I'm hooked to the best site on the web and say so proudly. In the vernacular..."If you ain't down with FR, you ain't down." My daughter says that was corny...LOL
A lot of the BCCI 'players' are very much active in the 'Global (Double) Crossing' shenanigans.
It is very reminiscent of that whole affair isn't it.
50 posted on 03/17/2002 5:21:48 AM PST by philman_36
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To: all
So what new findings will we find and post on Free Republic about Double Crossing this week?

Don't despair that we seem to be all alone on this endeavor. We are not alone!

Keep posting and replying, our message is and will get out about Double Crossing!

51 posted on 03/18/2002 6:00:33 AM PST by Grampa Dave
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To: Grampa Dave; wiseone
CIBC has a banking relationship with Hutchison Whampoa Ltd., the Hong Kong conglomerate that, in partnership with another company, has offered to buy Global's assets out of bankruptcy. Hutchison Chairman Li Ka-shing is one of CIBC's largest individual shareholders.

Purchase of Global Crossing

Posted on 08/12/2002 8:24 PM Eastern by wiseone

Hutchison Whampoa, the mammoth company that runs the Panama Canal and has close ties to the Chinese army, has a new rhinestone in its crown: Global Crossing. . .



Li Ka-shing, owns ten percent of Canadian Imperial Bank of Commerce (CIBC), making him the single largest individual shareholder. CIBC, in turn, owns Merrill Lynch Canada . Merrill Lynch International is owned jointly by Thomas Fung and Li.

On several occasions, Li has been called a "spy" and an "intelligence-collection front for China." He has also been implicated in US presidential campaign finance scandals. He is closely associated with General Ji Shengde, a former military intelligence director of the PLA (recently arrested for corruption) and is also close to General Xiong Guankai (also PLA) and Jiang Zemin. Li has also participated in several real estate deals with Chen Xitong, famous for his involvement in Tiananmen Square.
http://www.intellnet.org/topics/china-taiwan/analysis/ka-shing.html

A spokesman says CIBC had no knowledge that Global's business was souring. He adds that the bank always regards such investments as short-term.

Long before the company's stock hit the skids, Winnick apparently informed his wealthiest friends that he believed the excitable high-tech market had driven the stock's price far too high.

"Gary knew a couple of years ago that Global Crossing was way overpriced," says one rich pal. "He understood he was riding a very inflated crest, so he sold stock at highly inflated prices and bought into companies that did have assets worth the stock price."

Along with several other officers of the company, Winnick began offloading large chunks of stock and taking huge profits. Winnick sold $730 million worth of stock. . .

Meantime, stories about pals from Winnick's inner circle who made a killing on Global Crossing inconveniently continue to dribble out.

Business Week has reported that Canadian Imperial Bank of Commerce made more than $1.3 billion in profits from Global Crossing, thanks to shrewd moves by four of Winnick's former Drexel colleagues working at the bank's L.A. office. Some of those former colleagues sat on the Global Crossing board at various times.

The most shocking aspect of the huge profit made by the four men at Canadian Imperial Bank of Commerce is that they earned $200 million of the total after Global Crossing stock had plummeted to a few cents.

As it turns out, Winnick's former Drexel colleagues at the bank had taken a huge "hedge" position --essentially, they risked tens of millions of dollars to bet that the stock was going to nosedive when nobody else believed it would. When the bankers were proved right, they made a fortune.

Master of Disaster - How L.A.'s super-rich Gary Winnick is trying to wash blood from the Global Crossing implosion off his hands -- and make more money in the bargain.


52 posted on 08/13/2002 12:09:00 AM PDT by LarryLied
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To: LarryLied
Winnick is a real poster boy Rat CEO/shark!
53 posted on 08/13/2002 10:16:42 AM PDT by Grampa Dave
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