In 1990 and 1991, he submitted phony bids at the Treasury's quarterly auctions that enabled him to buy more than his legal share.

Then you don't have to worry about phony bids.

The irregularity was ultimately revealed to have been a phony bid by Salomon, using the name of a client that had put in a bid of its own.

Companies Salomon Brothers agreed to pay $290 million to settle Government charges that it had systematically submitted billions of dollars in phony bids in Treasury auctions.

He called the steps taken by the firm following the disclosure of the phony bids unprecedented.

Driving prices up with phony bids, they seek to provoke a bidding war among other participants.

And despite suggestions of phony bids by customers who buy their debt, they have managed to keep the lid on the details.

Practices like phony bids and secret loans to buyers from the houses themselves flourish, and would be held up to a far brighter light in more regulated businesses.

The suit was a shocker even to industry veterans because it disclosed Mr. Spitzer's findings of phony bids designed to direct business to certain insurers and to keep insurance rates high.

Although the Government never brought criminal charges, Salomon conceded that it had submitted some phony bids and ended up cooperating with the authorities.