NYSE Barred from Seeking Drexel Fine: A...

NYSE Barred from Seeking Drexel Fine: A bankruptcy judge has barred the New York Stock Exchange from seeking a record $50-million fine from Drexel Burnham Lambert Group Inc., saying the firm’s securities law violations had been punished adequately. The ruling by U.S. Bankruptcy Judge Francis Conrad means the stock exchange can’t proceed with disciplinary action against Drexel related to the investment firm’s 1989 guilty plea to six felony counts related to illegal trading. The NYSE had planned to seek $25 million each from the parent company and the securities subsidiary, Drexel Burnham Lambert Inc. It was negotiating with Drexel when the parent filed for Chapter 11 bankruptcy protection in February. Under federal law, the exchange needed court approval to proceed with the disciplinary action.