WASHINGTON -- Calling the violations in government securities transactions committed by Salomon Brothers Inc. extremely serious, Federal Reserve Board Chairman Alan Greenspan last week said the Fed "ultimately [will] take whatever action is warranted" to improve the sales process.

The Fed chairman made his remarks in an Oct. 31 letter to Senate Banking Committee Chairman Donald Riegle Jr., D-Mitch., who had written Mr. Greenspan earlier in the month outlining six issues he believes should be included in the Fed's 90-day market study. The Fed is conducting the study with the Securities and Exchange Commission and the Treasury Department.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.