FIREMAN'S FUND <FSC> SUBPOENAED BY SEC
Fireman's Fund Corp said it
has been subpoenaed by the Securities and Exchange Commission
in connection with the previously announced investigation into
the secondary public offering of its stock by American Express
Co on May 9, 1986.
    Fireman's Fund said it is cooperating with the SEC.
    Last week, American Express Co, its Shearson Lehman
Brothers Inc unit, and Salomon Inc's Salomon Brothers unit were
subpoenaed for records pertaining to a secondary offering of
Fireman's Fund stock.
    Fireman's Fund had been a wholly owned subsidiary of
American Express and now is less than 30 pct owned by the
finanancial services giant.
    Shearson, lead manager of the underwriting, and Salomon,
co-manger, were also subpoenaed for documents pertaining to
Jefferies and Co.
    Last week, Boyd Jefferies, former chairman of Jefferies and
Co, settled charges with the Securities and Exchange Commission
that alleged he violated securities laws, including market
manipulation.
    The transaction described in SEC documents pertaining to 
market manipulation charges mentioned a secondary offering of
the stock of a company, which was held by another company.
    The documents alleged Jefferies, at the request of a second
person, took actions to drive the stock price up before the
offering.
    The losses to the Jefferies firm were allegedly covered, at
the request of the second person, by sending a fake invoice to
a third person.
    An American Express spokesman said James Robinson, American
Express chairman, has said the firm knows of no wrong doing by
anyone at the firm.
    American Express retained two law firms to carry out an
internal investigation.
    American Express, Shearson and Salomon all said they would
cooperate with the investigation.
 Reuter
