The Wall Street Journal noted that he was, "The son of an orthodox Jewish cab driver and a dental hygienist, Mr. Joseph was born in 1937 and grew up in Dorchester, Massachusetts". While at Harvard, Joseph won several Harvard Boxing Club medals. Joseph was of Russian and Lithuanian descent. Although raised Orthodox, as an adult he ceased to practice.
In 1963, Joseph began his career in finance in the corporate finance department of E. F. Hutton working for John S.R. Shad. Following Shad's departure from Hutton, Joseph left the firm as well to join Shearson, Hammill & Co. By the early 1970s, Joseph was Shearson's chief operating officer, the number-two post in the firm. However, in 1974, Shearson was acquired by Hayden, Stone & Co. and Joseph left the firm to join Drexel Burnham Lambert as co-head of corporate finance. Although Drexel was only a second-tier firm at the time, Joseph knew he had no hope of becoming president of what was now Shearson Hayden Stone, headed by Sanford Weill. Additionally, he had long wanted to get back into investment banking. He boldly promised that in 10 years, Drexel would be as powerful as Goldman Sachs. Although junk-bond chief Michael Milken was the most powerful man in the firm, it was Joseph who was named president in 1984 and CEO in 1985. By this time, Drexel had more than fulfilled his bold promise, and had grown to become the fifth-largest investment bank in the nation.
In 1988, Joseph was responsible for negotiating Drexel's settlement with the federal government, in which the firm entered an Alford plea to six felony counts and paid $650 million in fines and penalties—at the time, the largest fine ever imposed under the 1930s securities laws. In 1990, the New York Stock Exchange banned him from holding any management role in a firm affiliated with the exchange for three years. In 1993, the SEC barred Joseph for life from serving as president, chairman or CEO of a securities firm. Both the NYSE and SEC faulted Joseph for not properly supervising Milken.[2] In 2009, Portfolio.com and CNBC named Joseph the seventh-worst CEO in American business history, stating that his over-reliance on Milken's junk-bond unit "left the company without a crisis plan."[3]
After three years as a consultant for Drexel as it wended its way through bankruptcy, Joseph served as head of Clovebrook Capital, a corporate finance consulting firm, from 1994 to 1998. He then became head of corporate finance at the American subsidiary of ING Barings from 1998 to 2001. After losing a bid to buy ING Barings' American operations, Joseph co-founded Morgan Joseph & Company, an investment banking firm that focuses on middle-market businesses, catering to a clientele that Drexel served in its heyday. Although the firm carried his name and he was part-owner, he was only co-head of corporate finance as a result of the SEC's lifetime ban.[2]
Joseph died on Friday, November 27, 2009 from complications of multiple myeloma. He was survived by his five children and seven grandchildren.
Further readingedit
Fred Joseph, Who Led Drexel in Its Heyday, Dies at 72. New York Times, December 1, 2009
Former Drexel CEO Dies at Age 72. The Wall Street Journal, November 30, 2009
Frederick Harold Joseph; Body Blow to a Fighter. New York Times, December 23, 1988
Drexel, Symbol of Wall St. Era, Is Dismantling; Bankruptcy Filed. New York Times, February 14, 1990
Drexel Chief's Tough Task: To Regain Client Confidence. New York Times, April 5, 1989
Referencesedit
^"Fred Joseph, Drexel Burnham Chief in Milken Years, Dies at 72". Bloomberg. November 30, 2009.
^Portfolio's Worst American CEOs of All Time - #7 Fred Joseph. CNBC, April 30, 2009
April 09, 2024
fred, joseph, frederick, joseph, april, 1937, november, 2009, former, president, chief, executive, officer, investment, bank, drexel, burnham, lambert, during, 1980s, frederick, josephborn, 1937, april, 1937boston, massachusettsdiednovember, 2009, 2009, aged, . Frederick H Joseph April 22 1937 November 27 2009 was the former president and chief executive officer of the investment bank Drexel Burnham Lambert during the 1980s Frederick H JosephBorn 1937 04 22 April 22 1937Boston MassachusettsDiedNovember 27 2009 2009 11 27 aged 72 1 New York CityAlma materHarvard University BA 1959 Harvard Business School MBA 1963 OccupationInvestment bankingYears active1963 2009Employer s E F HuttonShearson Hammill amp Co Drexel Burnham LambertClovebrook CapitalING BaringsMorgan Joseph amp Co Biography editThe Wall Street Journal noted that he was The son of an orthodox Jewish cab driver and a dental hygienist Mr Joseph was born in 1937 and grew up in Dorchester Massachusetts While at Harvard Joseph won several Harvard Boxing Club medals Joseph was of Russian and Lithuanian descent Although raised Orthodox as an adult he ceased to practice In 1963 Joseph began his career in finance in the corporate finance department of E F Hutton working for John S R Shad Following Shad s departure from Hutton Joseph left the firm as well to join Shearson Hammill amp Co By the early 1970s Joseph was Shearson s chief operating officer the number two post in the firm However in 1974 Shearson was acquired by Hayden Stone amp Co and Joseph left the firm to join Drexel Burnham Lambert as co head of corporate finance Although Drexel was only a second tier firm at the time Joseph knew he had no hope of becoming president of what was now Shearson Hayden Stone headed by Sanford Weill Additionally he had long wanted to get back into investment banking He boldly promised that in 10 years Drexel would be as powerful as Goldman Sachs Although junk bond chief Michael Milken was the most powerful man in the firm it was Joseph who was named president in 1984 and CEO in 1985 By this time Drexel had more than fulfilled his bold promise and had grown to become the fifth largest investment bank in the nation In 1988 Joseph was responsible for negotiating Drexel s settlement with the federal government in which the firm entered an Alford plea to six felony counts and paid 650 million in fines and penalties at the time the largest fine ever imposed under the 1930s securities laws In 1990 the New York Stock Exchange banned him from holding any management role in a firm affiliated with the exchange for three years In 1993 the SEC barred Joseph for life from serving as president chairman or CEO of a securities firm Both the NYSE and SEC faulted Joseph for not properly supervising Milken 2 In 2009 Portfolio com and CNBC named Joseph the seventh worst CEO in American business history stating that his over reliance on Milken s junk bond unit left the company without a crisis plan 3 After three years as a consultant for Drexel as it wended its way through bankruptcy Joseph served as head of Clovebrook Capital a corporate finance consulting firm from 1994 to 1998 He then became head of corporate finance at the American subsidiary of ING Barings from 1998 to 2001 After losing a bid to buy ING Barings American operations Joseph co founded Morgan Joseph amp Company an investment banking firm that focuses on middle market businesses catering to a clientele that Drexel served in its heyday Although the firm carried his name and he was part owner he was only co head of corporate finance as a result of the SEC s lifetime ban 2 Joseph died on Friday November 27 2009 from complications of multiple myeloma He was survived by his five children and seven grandchildren Further reading editFred Joseph Who Led Drexel in Its Heyday Dies at 72 New York Times December 1 2009 Former Drexel CEO Dies at Age 72 The Wall Street Journal November 30 2009 Frederick Harold Joseph Body Blow to a Fighter New York Times December 23 1988 Drexel Symbol of Wall St Era Is Dismantling Bankruptcy Filed New York Times February 14 1990 Drexel Chief s Tough Task To Regain Client Confidence New York Times April 5 1989References edit Fred Joseph Drexel Burnham Chief in Milken Years Dies at 72 Bloomberg November 30 2009 a b Drexel s Ex Chief Is Back in Business Portfolio s Worst American CEOs of All Time 7 Fred Joseph CNBC April 30 2009 Retrieved from https en wikipedia org w index php title Fred Joseph amp oldid 1215596694, wikipedia, wiki, book, books, library,
