Some of those loans were made while Mr. Malcolm was in charge of the junk bond department.

(The firm managed to persuade the Government to allow it to keep the junk bond department out West.)

Merrill Lynch disclosed that it had shaken up the management of its junk bond department and given refunds to nine institutional customers.

"It didn't even have a junk bond department," Ms. Lampert notes.

The defendants said that deal would involve $50 million in temporary financing to be placed by the high-yield "junk bond" department of Drexel.

Other midsized firms had started to built their own junk bond departments, but this can cost as much as $100 million.

Early this year, Merrill Lynch brought in new managers of its junk bond department and issued refunds to nine customers.

An investment bank must also develop a strong junk bond department, since these high-yield, low-quality securities are frequently used to finance the transactions.

The brokerage firm said that other employees of the junk bond department had also acquired Interco securities but that those purchases were approved by management.

Michael Milken, head of Drexel's junk bond department, is the pivotal character in the upcoming book.

Some of those loans were made while Mr. Malcolm was in charge of the junk bond department.

(The firm managed to persuade the Government to allow it to keep the junk bond department out West.)

Merrill Lynch disclosed that it had shaken up the management of its junk bond department and given refunds to nine institutional customers.

"It didn't even have a junk bond department," Ms. Lampert notes.

The defendants said that deal would involve $50 million in temporary financing to be placed by the high-yield "junk bond" department of Drexel.

Other midsized firms had started to built their own junk bond departments, but this can cost as much as $100 million.

Early this year, Merrill Lynch brought in new managers of its junk bond department and issued refunds to nine customers.

An investment bank must also develop a strong junk bond department, since these high-yield, low-quality securities are frequently used to finance the transactions.

The brokerage firm said that other employees of the junk bond department had also acquired Interco securities but that those purchases were approved by management.

Michael Milken, head of Drexel's junk bond department, is the pivotal character in the upcoming book.