Salomon Brothers Ethics Case

thics Case Salamon Brothers:

What should Meriwether do?

Problem – Mozer using unauthorized client accounts to purchase large amounts of bonds.

Whar actions are morally wrong?

Mozer trying to corner the US T-bond market submitting phony bids to auctions. Violated rules barring one firm from bdding for more than 35% of the securities offered at a Treasury auction.

The fact that Gutfreund did nothing – kept Mozer as the head of Treasury securities trading – lack of action was a green light to Mozer. Increase supervision of Mozer and place a limitat...