Drexel Burnham Lambert Bankruptcy

The investment bank Drexel Burnham Lambert, a powerhouse in the 1980s due to its pioneering of the junk bond market, filed for Chapter 11 bankruptcy. This event unleashed a wave of talent and a vast pool of distressed assets onto the market.

Significance

This bankruptcy was the direct catalyst for the formation of Apollo Global Management, as its founders, all former Drexel executives, identified the opportunity arising from the market dislocation and their former employer's collapse.