The company's results were weighed down by a $200 million charge at its main brokerage subsidiary to cover fines and legal costs related to the scandal.

Much of the cash is held in the brokerage subsidiary.

Almost all of those profits came from the firm's brokerage subsidiary, Salomon Brothers.

For instance, would a bank with a brokerage subsidiary be reluctant to lend money to the subsidiary's competitors.

General Electric said in a statement yesterday that the settlement by its brokerage subsidiary would have no impact on overall earnings.

He also said that no member of the board had raised concerns about continuing to support its brokerage subsidiary.

General Electric said profits were hurt in the first quarter by trading irregularities at its brokerage subsidiary.

To protect the assets of the brokerage subsidiary, the commission today barred it from transferring any more money to its parent company without regulators' approval.

Under the plans being discussed, the brokerage subsidiary would retain the Shearson name.

Salomon Brothers, the company's brokerage subsidiary, reported sharply higher earnings before taxes.