The Securities & Exchange Commission appears to be sorting out the blame for the Salomon Brothers Treasury bond-rigging scandal. In its settlement agreement, the SEC blames Salomon's ousted top management for failure to supervise their employees. John Gutfreund, Salomon's former CEO, must pay a $100,000 fine and agree not to head any brokerage firm without SEC approval. Two other former top officers were hit with lesser penalties.

On Dec. 2, meanwhile, the SEC sued Paul Mozer and Thomas Murphy, the two former Salomon traders who allegedly placed the improper bids for Treasury securities. Mozer's lawyer calls the suit "pure nonsense." Murphy could not be reached for comment.

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