INVESTIGATIONS: Get the Show On the Road

No one could accuse the Securities and Exchange Commission of acting precipitately. After 18 months of investigation, the SEC has authorized its staff to file civil charges of securities-law violations against Drexel Burnham Lambert and Michael Milken, the firm's junk-bond king. But the charges are not likely to be actually filed until a parallel criminal investigation is completed by the Manhattan office of U.S. Attorney Rudolph Giuliani, and that could still be months away. The charges are believed to concern deals involving Ivan Boesky, who is now serving a prison term for insider trading.

Responding to the SEC's move, Drexel Burnham reasserted its innocence. In a memo to employees, however, Chief Executive Frederick Joseph suggested for the first time that the company might try to negotiate a settlement with the SEC.