In Business This Week
DESIGNS ON A SMALL TREASURY DEALER
Treasury-bond dealers have received unaccustomed attention of late, in the wake of Salomon Brothers' admissions that it overbid for Treasury securities. Now, one of the smaller dealers, Discount Corp. of New York, is also getting unaccustomed attention--from a potential suitor. Little-known investors George and John H. McFadden, brothers of fashion magnate Mary McFadden, disclosed a 5.02% stake in DCNY. They may seek control.
The wisdom of the move is questionable. DCNY, one of the smallest of the 40 primary Treasury dealers, has had spotty financials lately. "There's no evidence of improvement," says Jeffrey Hopson, who follows the company for A. G. Edwards. "The business is very competitive, and we don't view this as changing because of the Salomon situation."EDITED BY PETER FINCH