BANKING & FINANCE - Dec. 24, 1991

SEC Offers Plan for Bond Dealers: The Securities and Exchange Commission is offering bond dealers a chance to pay fines and settle charges that they lied about their bidding for government agency securities, industry officials said. The action would bring to a close much of the uncertainty caused by a range of investigations into rampant violations in the markets after Salomon Inc. last summer admitted fraud in bidding at Treasury bond auctions. In a separate action, the Federal National Mortgage Corp. placed all 53 of its dealers, including Salomon, on one year’s probation for widespread violations of bidding rules. Fannie Mae, the largest issuer of agency debt, said its study of sales practices over the past three years revealed every member of its selling group violated one or more of the sales rules.