Scandals: Paying Penance

Paying Penance

In his effort to clean up Salomon Brothers' tarnished image, Warren Buffett, the Wall Street investment house's new interim chairman, has announced plans to form an in-house compliance committee, hired an outside accountant and handed down commandments designed to strengthen the firm's integrity, if not its balance sheet.

Still, Salomon is plagued by the sins of its past. Last week it was disclosed that Paul Mozer, the bond trader said to have arranged the illegal trades in Treasury bills and bonds that initially got the firm into trouble, had sold 46,000 shares -- or about $1.7 million -- of Salomon stock...

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