Wall Street Watchdog Takes a Bite

The SEC moves to discipline former Salomon Brothers executives

THE SECURITIES AND EXCHANGE COMMISSION FINALly dropped the gavel in the Salomon Brothers trading scandal. In its toughest enforcement action in the case, the SEC filed a civil lawsuit against the two former Salomon executives who allegedly engineered the 1991 scheme to submit phony bids in U.S. Treasury auctions. The government is seeking unspecified fines and court injunctions against former managing directors Paul Mozer and Thomas Murphy. Mozer and Murphy, who both contest the suit, also face possible criminal indictments. But not all of the SEC's actions had as much bite. In a settlement that some observers criticized as toothless, the...

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