Donaldson lufkin. Donaldson, Lufkin & Jenrette, Inc. 2019-01-08

Donaldson lufkin Rating: 7,1/10 828 reviews

Tooley v. Donaldson, Lufkin & Jenrette, Inc. Case Brief

donaldson lufkin

The management has realized the significance of investing in their staff and supporting them to bring about the change. Securities and Exchange Commission v. As far as their alumni - they are all over the street. This result — permitting plaintiffs to replead — is unusual, but not unprecedented. They were the Mike Mayo's of the 60s, 70s, 80s and 90s. The Banking Group accounted for 33.


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Can you tell me about Donaldson, Lufkin & Jenrette (DLJ)?

donaldson lufkin

There, a stockholder began acquiring shares in the defendant corporation presumably to gain control of the corporation. The firm was also hurt by the end of fixed commissions in 1973 and consequent competition from new discount brokers, and by its heavy investment in the unprofitable Meridian real estate investment trust. By 1964 the firm had established a corporate pension-fund department and was targeting wealthy individual investors. That's how they made their money. By 1997, the firm was ranked first in junk-bond underwriting up from seventh in 1990. They asked a colleague, Richard H. We affirm the judgment of the Court of Chancery dismissing the complaint, although on a different ground from that decided by the Court of Chancery.

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Donaldson, Lufkin & Jenrette Securities Corp., predecessor in interest to Credit Suisse First Boston LLC: Admin. Proc. Rel. No. 34

donaldson lufkin

They were high flying and did really well. For example, if an action is derivative, the plaintiffs are then required to comply with the requirements of Court of Chancery Rule 23. Although Respondent had policies concerning the use of common mailing addresses, Hanna was able to circumvent the policies because Respondent lacked an adequate system to enforce and apply these policies. While the firm was trying to make its way through the turmoil of the 70s, Richard Jenrette took over running the firm in 73 and ran the firm. As an aside, Jenrette really was an interesting figure and if you are into the restoration of historic homes I would highly recommend checking out his book. Much of this money was provided by Equitable.


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Donaldson, Lufkin & Jenrette, Inc.

donaldson lufkin

. The Initial Report shall describe the review performed and the conclusions reached, and shall include any recommendations deemed necessary to make the policies, procedures, and system of supervision and compliance adequate. The company approached the pricing task using the method of comparable multiples. They were the Mike Mayo's of the 60s, 70s, 80s and 90s. It's a small world in finance, so I wouldn't be shocked if you have worked with a few without realizing it.

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Can you tell me about Donaldson, Lufkin & Jenrette (DLJ)?

donaldson lufkin

Can any of the older monkeys on here tell me more about the firm? Hanna was also able to intercept those customer complaints that were received by the office's facsimile machine located near his office. In re Tri-Star Pictures, Inc. Rather, the plaintiff was seeking a declaration of the invalidity of the agreements on the ground that the board had abdicated its responsibility to the stockholders. Cash made up one-third of the purchase price. In describing how a court may distinguish direct and derivative actions, the Bokat Court stated that a suit must be maintained derivatively if the injury falls equally upon all stockholders. In 1996 it was rated as the leading underwriter of high-yield bonds and fourth as lead underwriter of domestic public issues.


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Donaldson, Lufkin & Jenrette Securities Corp., predecessor in interest to Credit Suisse First Boston LLC: Admin. Proc. Rel. No. 34

donaldson lufkin

Thereupon, the Court held that the plaintiffs lost their standing to bring this action when they tendered their shares in connection with the merger. It's a small world in finance, so I wouldn't be shocked if you have worked with a few without realizing it. Accordingly, the complaint was properly dismissed. In its opinion, the Court of Chancery properly found on the facts pleaded that the plaintiffs have no separate contractual right to the alleged lost time-value of money arising out of extensions in the closing of a tender offer. The firm deferred to Hanna's purported knowledge of South American exchange houses, and accepted his representation without taking any steps to independently corroborate his representation, such as by contacting the customer or the financial institution. It is confusing because it appears to have been intended to address the fact that an injury to the corporation tends to diminish each share of stock equally because corporate assets or their value are diminished. This subsidiary subsequently grew into the largest pension fund manager on Wall Street and became the firm's chief source of income.

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Donaldson, Lufkin & Jenrette, Inc.

donaldson lufkin

The Capital Markets Group encompassed a broad range of activities, including trading, research, origination and distribution of equity and fixed-income securities, private equity investments, and venture capital. The company's activities included many lucrative stock underwritings, trading in mortgage-backed securities and junk bonds, and a thriving restructuring business which helped companies that needed to issue or refinance junk bond debt. I mean, I have a keen interest in the history of a number of Wall Street firms that are now dead and buried. The company's venture capital operation could boast of having organized such successes as Geosource, a specialized oilfield-service company, and Shugart Associates, a manufacturer of floppy disks. As their stock grew through research which was a huge commodity during the 80s and 90s versus the bullshit you got everywhere else on the street , they were able to expand into a number of huge areas.


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Donaldson, Lufkin and Jenrette Securities Corp

donaldson lufkin

It does not arise out of any independent or direct harm to the stockholders, individually. On appeal, plaintiffs-appellants do not challenge the trial court's finding. This paper will identify the development of Shackleton's leadership skills, provide examples and reflections of his abilities, and relate how he played an essential role in one of history's greatest survival stories. This south-east Asian country is gradually becoming a hub for tourism and not surprisingly international and local business event or meeting. To further conceal his misappropriations, unauthorized securities trading, and false representations, Hanna created and provided many of the defrauded customers with falsified account statements and other documents that overstated the value of the accounts, reflected nonexistent holdings, reflected purchases or sales of securities that had never occurred, and failed to disclose Hanna's unauthorized withdrawal of monies from the accounts. Needless to say, I also picked up his biography and learned a lot through his biography.

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DONALDSON, LUFKIN & JENRETTE TO ACQUIRE BRITISH FIRM

donaldson lufkin

But the trial court's opinion convincingly demonstrates that plaintiffs had no such contractual right that had ripened at the time the extensions were entered into: Here, it is clear that plaintiffs have no separate contractual right to bring a direct claim, and they do not assert contractual rights under the merger agreement. Therefore, it is necessary that a standard to distinguish such actions be clear, simple and consistently articulated and applied by our courts. In our view, the tests going forward should rest on those set forth in this opinion. Accordingly, there is no basis to hold that the complaint states a derivative claim. The consideration for that transaction included both stock and cash. The case gives ample information on valuation multiples of peer firms. Failure to Review Incoming and Outgoing Correspondence Received and Transmitted By Facsimile 13.

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Donaldson, Lufkin & Jenrette Securities Corp.

donaldson lufkin

Further Reading Arenson, Karen W. The Chancellor further explains that the focus should be on the person or entity to whom the relevant duty is owed. That error is harmless, however, because, in our view, there is no direct claim either. They acquired the bulk of Drexel Burnham Lambert's High Yield bond team in the late 80s as Drexel went under, giving them a huge advantage in the High Yield and underwriting space. Jenrette moved up from president and chief operating officer to succeed him. This performance, in turn, pushed up the price of the stock of its majority owner, The Equitable. The instructor may cover the general subject matter of the A and B cases by using this abridged version.

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