STREET FIRMS TAKE LOSSES, BUT REAFFIRM STRENGTH
Senior officers at major Wall Street
firms said they've been suffering heavy trading losses during
the market's decline, but stressed their firms are liquid
enough to withstand the battering.
    "We certainly lost money in our trading departments
yesterday and today and in effect gave back a small part of the
year's profits," said Robert E. Linton, chairman of Drexel
Burnham Lambert Inc. "But the firm is in good shape. We're very
liquid, although we're going to show some red ink for a short
time."
    Rumors of collapses at major U.S. securities firms swept
the world's financial markets since the U.S. stock market began
its record decline Monday.
    The Dow Jones Industrial Average fell a record 508 Monday
to 1738, erasing the entire gain of the past year. Tuesday's
trading was also volatile on volume of more than 614 mln
shares. Stocks were mostly lower, but the Dow indicator
recovered 102 points to a preliminary closing figure of 1841.
    "There are all kinds of rumors being circulated, by bears I
guess, about firms having problems," said Salomon Inc Chairman
John Gutfreund.
 Reuter
