Top News Story August 18, 1991

Flip_flop_politics
Published on Jul 20, 2022
Solomon Brothers securities firm is undeyinvestigation for improper trading of Treasury bonds. Scandal revealed when Solomon disclosed it violated five budding rules in Treasury auction and made two bogus trades. The violation was not disclosed in a timely manner. Top officers resigned and replaced by Warren Buffet of Berkshire Hathaway, a major holder in Solomon.

The US Treasury Department did suspend Solomon from participating in auction of new issues. However, Buffet called Treasury secretary Nick Brady saying such action was harmful to the firm, and therefore the Treasury Department rescinded the ban after pressure from Buffet.

Hurricane Bob is churning off the coast of the Carolinas.