Takes A Hike Falling Axes

WALL STREET'S WOES HAVE claimed a high-ranking casualty. Mason Haupt, the head of Salomon Brothers' mortgage-backed securities department, has resigned, BUSINESS WEEK has learned.

As the bond markets take a beating from rising interest rates, Salomon Inc. has racked up losses of $242 million for 1994's first three quarters. And Salomon acknowledges that mortgage-backed securities (MBS) losses accounted for a significant portion of the red ink. Plenty of firms have taken a hit on MBS operations, but Solly, a pioneer in the field, was particularly bruised. One rival puts its losses at "more than a few hundred million." Says a Solly insider: "When you lose that much money at Salomon, you know when to resign."