European Stars and Stripes (Newspaper) - February 16, 1990, Darmstadt, Hesse                                Friday february 16. 1990 the stars and stripes Page 5 massive layoffs expected at Drexel 3,500 to 4,000 of junk Bond giant Likely to lose jobs new York up most employees at Drexel Burnham Lambert group inc. The junk Bond giant that went from a a billion profit to bankruptcy proceedings in the Span of four years arc expecting to he Laid off by the weekend. The investment firm would not release any figures on the expected sic of the stall cuts hut people closet the company said As Many As .1.500 to 4.000 employees will lose their jobs b the end of the week. Drexel. Once the most profitable investment firm in new York with $1 billion in profits in 148ft. Is the country s fifth largest employing about 5.100 people whose jobs arc threatened by the largest bankruptcy filing in the history of Wall sired. Financial analysts said eventually Uherc will be Noth ing left of the firm except the holding company which is i Ngalu obligated to remain in existence while a num Ber of suits filed in investors still Are pending. You have about 4.0110 people who Are going to be Laid Oil at  said financial services analyst Gary Hovis at Argus research expressing Doughl  Many Drexel employees would find new jobs on Wall Street. Hovis said. There could be some Job cutbacks too. At other firms involved in junk Bonds All this will Hurt people who work on Wall  Drexel s woes were brought about by the sudden Success and Swift demise of junk Bonds the High risk High yield investments used to finance takeovers and to raise capital. Of All . Firms dealing in junk Bonds. Drexel had the highest exposure win 40 percent of its trading wis. Judge rules against airline on overflight drinks Madison. Wis. Al1 Dane county circuit judge James Boll ruled that Wisconsin May collect is 5 percent sales lax from an airline for drinks sold while its jets hew Over the stale. He ordered Republic airlines inc. To pay wisconsinj90.622 in sales lax for drinks consumed on its flights Oxer the stale for 1481 through 1984. Boll rejected Republic s argument that a Law Autho i ing a sales lax on drinks consumed in this state did not mean Over this  Republic with ils numerous facilities in Wisconsin received substantial benefits from inc state said state Revenue Secretary Mark Bugher. He declined to say whether other airlines might be similarly taxed. Generally we would not be looking to reach out and touch every airline that touches the state s Atmo  Bugher said. If Japan airlines for instance happens to Fly Oxer the Northern reaches of Wisconsin it would t be our policy to  Republic lawyer Frederic Brouner said he did not know whether the ruling would be appealed. Brouner said Wisconsin s attempt to collect on the lax after the Sale was particularly onerous because it was impossible for inc Vendor to tax the consumer at the Point of Sale. Positions in the High risk instruments. Among is Many deals. Drexel handled junk bunds for Toronto based Campeau corp., whose . Retailing subsidiaries were forced into bankruptcy last month. Practically every major firm on Wail Street via dealing in junk Bonds Hul they Are not going to experience the same problems because of the High Quality of their Ink Bonds and the smaller percentage they rep resent in their  Clovis said. Lie pointed out  junk Bonds account for Only 10 percent to 15 percent of the business conducted by other Large firms. I Conn Long financial scr ices analyst at  analytical predicted Drexel would he left Wii i no Sec in ties operations at All and Only a Lew Hundred people working at the Parent company. Drexel began curtailing its trans actions  several main exchanges hours before filing for Protection from creditors under chapter ii of the . Bankruptcy code Lale tuesday. You cannot liquidate a company when Thucie Are suits pending. You cannot walk away from  Long said. There will be 200 to 300 people left to of Peale the Parent company. People associated with securities trading will find themselves on the  he said about 15 percent of them those with Good expertise will be Able to find a new position on Wall Streel. Hul 85 percent will have to look into other areas. The securities business is not All that  the feeling was echoed by Lawrence Ecken folder. An analyst at Prudential Bache in san Francisco. The situation on Wall Street is not great right   said. People will Start looking in new York and if their search brings Little results they will have to look elsewhere. Bui there Are not that Many opportunities in the investment sector nation wide at the moment " several new York investments firms said their Tele phones had been ringing almost continuously since tuesday morning when Drexel announced it Vas considering bankruptcy proceedings and employees began Hunting Lor new jobs. Several Drexel employees  their belongings late tuesday and wailed with boxes in front o the firm s lir Oad Street Headquarters Lor the limousines that take senior employees Home every night. This is going to be a terrible mow to our  said a in Var Al the limousine rental company used by . In is the end of an  while the Rise and fall of  Vas the Lalk of Wall Street wednesday Little sympathy was expressed Over the firm s demise. Everybody was frankly Anno cd that Drexel made so  Money is fast in the Nihil Mixos. And now that Drexel has to bile the Bullet nobody is really crying for  Tipper s Long said. Drexel was involved m illegal trading practices and had to pay $ 50 million in a civil suit settlement. That kind of behaviour docs nol generate a lot of sympathy among the american investment  Hovis said. Frankly it is a serious happening for Wall sired hut nol Lor main Streel .a." added Hovis. Who predicted the turmoil surrounding Drexel would die out in a couple of months. The Trump bump Ivana Trump is mobbed As Slit leaves a new York City restaurant after celebrating her 41sl birthday tuesday. The sex Model had nothing to say about the breakup of her marriage to husband Donald Trump. Mass becomes 2nd state with Gay rights measure Boston up a Gay rights Law which Cwm Inlo effect this week make Massachusetts the second state to outlaw discrimination against homosexuals and lesbians. The new Law bars discrimination against Gays in housing employment credit and Public accommodations and allows the Massachusetts commission against discrimination to prosecute violators. The Bill approved by inc legislature in december after a 17-year Battle contains exemptions for religious organizations and one and two family dwellings. Wisconsin is inc oily other stale with a similar Law. This is a historic Milestone in Massachusetts Long tradition of fairness jus Tice and Equality under he Law said Arlin Isaacson co chair of inc Massachusetts Gay and lesbian political Cau Cus. Bui even As inc Law comes into Force it faces a Legal and political struggle thai could last inc rest of the year. A group calling itself citizens for family first is pressing an Effort to have a referendum repealing the Law included on the november ballot. Sale Al Lorincy general James Shan non had ruled that the referendum would be unconstitutional because the Law contains sections pertaining to the exercise of religion. The group has filed suit in the supreme judicial court to overturn Shan non s ruling. Sands of time in the stars and stripes 40 years ago today. Feb. 16. 1950 eight men were killed and seven escaped when an air Force b-29 crashed shortly after taking off from Greal Falls. Mont., on a search Mission to look fora missing b-36. 30 years ago today. Feb. 16. 1960 Richard Nixon opened his one Day Campaign visit to Detroit by announcing his Hope for a presidential Campaign with no mudslinging and no religious issues. 20 years ago today. Feb. 16. 1970 judge Julius j. Hoffman sentenced defense lawyer William m. Kunstler to four years in prison for contempt but stayed the sentence several month so inc lawyer could continue his duties in the Chicago seven riot conspiracy trial. J 0 years ago foe a. Feb. 16, 1980 the Federal Reserve Board sharply boosted discount interest rates from 12 to 13 percent. The highest in history. The Board which had taken the Lead in the government s anti inflation Campaign said it acted out of concern Over Cost increases in imported Oil