Placing the Blame At E.F. Hutton

After an outsider's probe, the broker disciplines 14 executives

When E.F. Hutton Chairman Robert Fomon gave a 30-minute talk over the company's public-address system last week, everybody listened. His 17,000 employees and the rest of Wall Street had been waiting four anxious months for the results of an internal probe into the check-kiting scheme for which Hutton paid a $2 million fine in May. "It won't make pleasant reading," Fomon advised as he gave a preview of the 183-page report issued last week by former Attorney General Griffin Bell, whom Hutton had hired for the job.

No specific Hutton employees had been singled out for blame back in May, when...

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