Free Republic

<p>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.</p>

BNP Paribas, the bank associated with the Oil-for-Food scandal, is doing brisk business in Governor Arnold Schwarzenegger’s golden state. According to its website, "BNP Paribas acts as the sole agent for the State of California’s economic recovery bonds, the largest municipal bond sale in the United States." Active in the municipal bond market for over 10 years, BNP is providing credit enhancement and liquidity support for the State of California’s sale of $2.97 billion of variable-rate Economic Recovery Bonds ("ERB’s"). The bank also boasts that it will be a proud partner of San Francisco in financing the rebuilding of the...