ABSTRACT
This chapter focuses on question of the relationship between corporations, banks, and the state. During the 1980s, Drexel was constantly working at managing and limiting uncertainty, including developing a stable and predictable relationship with its political environment. Drexel established various ways of doing this: One was to create interlocking networks of buyers and sellers to control its economic and, indirectly, its political environment. The Securities Exchange Act (SEA) was written largely to regulate the conduct of the markets. Organizational analyses have not revealed the relationships between investment banking, savings and loan officers, and various political entities that make the laws that regulate and control their behavior. The sociopolitical embeddedness explanation of the reform of Racketeering Influenced Corrupt Organization (RICO) results from an analysis of the social interactions among members of Congress, corporate elites, and financial elites of savings and loans and investment banks.
