Scamfluencers ENCORE: Mike Milken: When Junk Was King | 187
Nov 10, 2025
Delve into the glitzy world of the 1980s with the rise and fall of Michael Milken, the 'Junk Bond King.' Discover how his risky financing strategies transformed Wall Street and empowered corporate raiders like T. Boone Pickens. Learn about Milken's relentless ambition, his empire-building tactics in Los Angeles, and how his opaque practices led to investigations and his eventual downfall. Explore his brief prison stint, subsequent reputation rehab, and continued influence through philanthropy and conferences.
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Golden Nugget Kickstarted Milken's Rise
- Michael Milken raised $160 million to help Steve Wynn open Golden Nugget Atlantic City, positioning Drexel as the go-to casino financier.
- The deal made huge fees for Drexel and launched Milken's reputation for funding risky, unconventional borrowers.
Exploiting A Blind Spot In Ratings
- Milken saw a blind spot in credit ratings and sold high-yield bonds to investors willing to back risky companies.
- This let undercapitalized firms access capital while Drexel collected huge underwriting fees.
Predator's Ball Became A Power Network
- Drexel's Predator's Ball became an annual gathering where Milken and Fred announced funding for corporate raiders.
- The firm marketed that the "small can go after the big," fueling hostile takeovers with junk-bond financing.
