FOR IMMEDIATE RELEASE                                                    AT
FRIDAY, DECEMBER 16, 1994                                    (202) 616-2771
                                                         TDD (202) 514-1888

     JUSTICE DEPARTMENT, SEC ANNOUNCE THAT STEINHARDT AND CAXTON WILL
        PAY $76 MILLION TO SETTLE ANTITRUST AND SECURITIES CHARGES

     WASHINGTON, D.C. -- Two of the country's leading investment
fund managers, Steinhardt Management Company Inc. and Caxton
Corporation, have agreed to pay $76 million to settle antitrust
and securities charges filed today by the Department of Justice
and the Securities and Exchange Commission in U.S. District Court
in New York City.  
     Anne K. Bingaman, Assistant Attorney General in charge of
the Department's Antitrust Division, and William McLucas,
Director of Enforcement at the Securities and Exchange
Commission, announced the settlement today at a press conference
in Washington.
     Along with the settlement filed today, the Department filed
a civil complaint charging that Steinhardt and Caxton conspired
to limit the supply of, or to "squeeze," the Two-Year Treasury
note issued in April 1991.  As a result of the conspiracy,
investors who wanted to purchase or borrow such securities had to
pay inflated prices.  The Department's proposed consent decree,
if approved by the court, would settle the antitrust suit.
     "Steinhardt and Caxton joined to corner the market and to
inflate the price of securities in the largest and most important
securities market in the world.  The health of this market is
critical to the nation's economy and to financing the national
debt," said Bingaman.
     The Department said that Steinhardt and Caxton purchased a
combined position of almost $20 billion in the April Two-Year
Note, or 160 percent of the $12 billion issue.  The two firms
agreed to coordinate their trading of the issue in a way to
withhold it from the market, forcing investors to pay inflated
prices to buy or borrow the security.  The conspiracy lasted for
several months in the spring and summer of 1991.
     "From the Commission's perspective, this case stands for the
proposition that parties cannot engage in fraud and manipulation
in the market for U.S. Treasury securities.  This case reflects
the Commission's commitment to protecting the integrity of that
market," said McLucas.
     Steinhardt agreed to pay $40 million to settle the charges. 
Of this amount, $12.5 million will be forfeited to the United
States under the antitrust laws, $6.5 million will be paid to the
SEC as a penalty for violating the securities laws and $21
million will be placed in a disgorgement fund to be administered
by the court for the benefit of the victims of the violation. 
     Caxton agreed to pay $36 million.  Of this amount, $12.5
million will be forfeited to the United States under the
antitrust laws, $9.5 million will be paid as a penalty for
violating the securities laws and $14 million will be placed in
the disgorgement fund.  
     Caxton and Steinhardt also agreed to an injunction that will
prevent them from conspiring to inflate the price of Treasury
securities in the future.
     The cases are the result of an unprecedented three-year
effort that combined the forces of the Antitrust Division with
those of the SEC Division of Enforcement.  "The Division will
continue to coordinate with the SEC and other agencies in its
efforts to enforce the antitrust laws in financial markets,"
Bingaman said.
     As required by the Tunney Act, the proposed consent decree
will be published in the Federal Register, together with the
Department's competitive impact statement.  Any person may submit
written comments concerning the proposed decree during a 60-day
comment period to John Greaney, Chief, Computers & Finance
Section, Antitrust Division, U.S. Department of Justice, 555 4th
Street, 9th Floor, Washington, D.C. 20001.
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