New Brokerage Rule Sought: The SEC, responding...

New Brokerage Rule Sought: The SEC, responding to the collapse of Drexel Burnham Lambert Group Inc., is proposing a rule to require a brokerage to notify the agency before its parent company takes out large sums of money. Brokerage houses are expected to resist the plan, considered more stringent than one proposed a few weeks ago by the New York Stock Exchange. The SEC was alarmed when the Drexel parent group, in the weeks before filing for Chapter 11 bankruptcy protection, withdrew hundreds of millions of dollars from its broker-dealer unit, Drexel Burnham Lambert Inc. Although the brokerage unit was regulated by the SEC, it was not required to inform the agency about the withdrawals, a fact that brought widespread criticism.