One executive said it did not appear that the heads of the smaller regional municipal bond firms were being invited.

Major bond firms are still giving heavily to political campaigns around the country, despite a recent Federal rule intended to reduce such gifts.

G-37 also has not discouraged politicians from soliciting money from bond firms.

Critics of G-37 say bond firms can also win politicians' favor by giving to their allies.

He kept saying he was going to quit and go work in his family's municipal bond firm, a small, odd-lot operation.

Some of Wall Street's largest bond firms did short the bond issue, traders say.

"He's cost people a lot of money," the head of government bond trading at one of the largest bond firms complained early this week.

The case marks the first decision in a case against a municipal bond firm for doing business with Government agencies after making campaign contributions to agency officials.

Salomon is one of the nation's top five bond firms, with its municipal operations among the country's most prestigious.

Then the next bond firm would have its shot.