Page "Leveraged buyout" Paragraph 21

Drexel reached an agreement with the government in which it pleaded nolo contendere ( no contest ) to six felonies — three counts of stock parking and three counts of stock manipulation.

It also agreed to pay a fine of $ 650 million — at the time, the largest fine ever levied under securities laws.

Milken left the firm after his own indictment in March 1989.

On February 13, 1990 after being advised by United States Secretary of the Treasury Nicholas F. Brady, the U. S. Securities and Exchange Commission ( SEC ), the New York Stock Exchange, and the Federal Reserve, Drexel Burnham Lambert officially filed for Chapter 11 bankruptcy protection.