JEFFERIES <JEFG> SETTLES DISPUTE WITH SEC
Jefferies Group Inc said it
resolved an accounting dispute with the staff of the Securities
and Exchange Commission resulting from a brokerage transaction
in which the company acted as agent for buyer and seller.
    The transaction resulted in a threat of litigation and a
settlement involving a 1.2 mln dlr loss to Jefferies Group and
a personal 3.8 mln dlr loss to former chairman Boyd Jefferies,
the company said.
    It also said the dispute was not related to the announced
settlement with the SEC and the resignation of Boyd Jefferies.
    Last month the company announced that the SEC had
questioned its fourth quarter and fiscal year earnings because
of the method used by the company to account for the
transaction.
    In the SEC's view, the 3.8 mln dlr loss incurred by Boyd
Jefferies should have been recorded by the company  as a loss
with a corresponding contribution to capital by Jefferies, the
company said.
    Jefferies Group reported fourth quarter earnings of 4.3 mln
dlrs, or 48 cts per share and income of 13.7 mln dlrs, or 1.55
dlrs per share for all of 1986.
 Reuter
