Black and Solomon are just a few Wall Street leaders attending who began their careers at Drexel Burnham Lambert, the firm once run by Michael Milken before he pleaded guilty to violating securities laws. The Milken conference is at the Beverly Hilton Hotel, where the junk-bond king used to hold an annual gathering, widely known as the Predators’ Ball, for investors looking to bet on distressed companies. He’s spent more recent decades focusing on philanthropy -- funding medical research and charities.
“There is a pretty extraordinary assembly of people who used to work for Mike in some way,” Ditizio said. “It was such a long time ago. I look at some of my staff here, they weren’t even born.”
Socialism’s Rise
This year, there are signs that cultural and political winds in the U.S. are shifting against the country’s richest, as well as big banks and other industries.
Socialism is gaining popularity, particularly with young Americans. A Gallup poll in August found that 51 percent of people age 18 to 29 have a positive view of the more liberal economic approach, associating it with European democracies guaranteeing health care and paid leave. Capitalism’s popularity slumped to 47 percent in that age group -- down from 68 percent in 2010.
Last year’s election featured the ascent of progressives such as New York Representative Alexandria Ocasio-Cortez, who have since shifted the debate on environment regulation and social programs with a “Green New Deal.” Heading into next year’s presidential race, Senator Elizabeth Warren is pushing an annual tax on wealth exceeding $50 million.
This month, seven bank CEOs including Solomon were called to a hearing on Capitol Hill, fielding questions about pay disparity, gender equality and a wide variety of business dealings, such as services for gun manufacturers and oil companies.
Now, Milken-goers are concerned about what might come from Washington next, said Cantor. They don’t want the government to interfere with free markets, he said.
To be sure, there are do-gooder events at Milken, such as sessions on sustainable investing, health care, student debt and a hot new tax break to help struggling communities, dubbed opportunity zones. Yet, several sessions on the tax perk are labeled “invite only,” including a panel with U.S. officials helping implement the policy. The measure, part of a broad overhaul President Donald Trump’s administration pushed through in December 2017, is proving controversial, with skeptics concerned it may help the rich more than the poor.
A number of figures from the Trump administration will be present. Mick Mulvaney, the White House’s acting chief of staff, is scheduled to share his view of the economy. And Trump’s daughter, Ivanka Trump, was added days ago to the roster of attendees. Last year, Vice President Mike Pence joined Colony’s Barrack in a closed-door, fireside chat and later attended a $10,000-per-person fundraiser that included Treasury Secretary Steven Mnuchin.
Landing a Deal
It’s places like these that deals get started. Tom Amster, the Los Angeles-based head of U.S. financial sponsors at Macquarie Capital who’s attended Milken for more than a decade, said he, too, generates business from meetings there.