Drexel management immediately began plea bargain talks, concluding that no financial institution could survive a RICO indictment.
"We are close to making a case, and it may be part of a RICO indictment."
This past August, the Government brought a RICO indictment against a securities firm called Princeton/Newport Partners.
Over the next decade, a string of RICO indictments stripped every Chinatown gang and tong of their top brass.
Since the RICO indictments, Jim Bulger has also been charged with twenty murders.
Prosecutors unfairly recycled the old charges of manslaughter and hijacking, for which Gotti had already been convicted, as part of the RICO indictment.
The threat of a RICO indictment unnerved many at Drexel.
A RICO indictment would have required the firm to put up a performance bond of as much as $1 billion in lieu of having its assets frozen.
Due to this, banks will not extend credit to a firm under a RICO indictment.
It was one of the first occasions that a RICO indictment was brought against an individual with no ties to organized crime.