Securities Trading Investigation

The subcommittee heard testimony on reports of government securities trading violations by the financial firm Salomon Brothers. The witnesses testified on a report submitted to the subcommittee on the conduct of Salomon Brothers concerning the illegal trading, which indicated the firm’s top management knew of the illegal trading but only publicly disclosed the fact after the government sent them a threatening letter. The report detailed the illegal practices conducted by Salomon Brothers' employees in the practice of securities trading, which violated several federal regulations concerning financial transactions. Salomon Brothers Chair Warren Buffett apologized to the subcommittee for “the actions that brought us here.” close