United States Securities and Exchange Commission

   Securities Exchange Act of 1934
   Release No 41963 / September 30, 1999

   Administrative Proceeding
   File No. 3-10068

   PUBLIC PROCEEDINGS INSTITUTED AGAINST LEGG MASON WOOD WALKER, INC.,
   THOMAS M. DALY, AND JOSEPH SULLIVAN

   The Securities and Exchange Commission ("Commission") announces the
   institution of public administrative proceedings against Legg Mason
   Wood Walker, Inc. ("Legg Mason"), Thomas A. Daly ("Daly") and Joseph
   Sullivan ("Sullivan"), pursuant to Sections 15(b), 15B(c), 19(h) and
   21C of the Securities Exchange Act of 1934 ("Exchange Act").

   The Commission's Order Instituting Public Proceedings ("Order")
   alleges that, from 1994 through 1998, Legg Mason, assisted by Daly and
   Sullivan, failed to timely file final official statements and advance
   refunding documents with the Municipal Securities Rulemaking Board
   ("MSRB"), in connection with Legg Mason's participation in initial
   bond offerings. The Order also alleges that Legg Mason, Daly and
   Sullivan failed to supervise Legg Mason's municipal securities
   business in order to ensure compliance with MSRB rules. The Order
   further alleges, that the respondents' violations occurred despite
   their having received prior notice of both increased attention to MSRB
   rule compliance, and of deficiencies in Legg Mason's MSRB rules
   compliance.

   The Order alleges that, in connection with Legg Mason's participation
   in initial offerings, including advance refundings, of municipal
   securities during the relevant period, Legg Mason willfully violated
   MSRB Rules G-36(b)(i) and (ii) in that it failed to file, or filed
   delinquently, documents required to be filed under those rules. The
   Order further alleges that Daly, who managed both Legg Mason's
   municipal securities sales and trading and public finance functions
   from approximately 1983 through April 18, 1997, willfully aided and
   abetted and/or was a cause of Legg Mason's violations of MSRB Rules
   G-36(b)(i) and (ii) in that he knew, should have known and/or was
   reckless in not knowing of Legg Mason's Rule G-36 violations yet he
   did not cure those violations or otherwise ensure that Legg Mason
   complied with Rule G-36. The Order alleges that Sullivan, who has
   managed Legg Mason's municipal securities sales and trading since at
   least April 18, 1997, was a cause of Legg Mason's violations of MSRB
   Rules G-36(b)(i) and (ii) in that he knew or should have known of Legg
   Mason's Rule G-36 violations yet he did not cure those violations or
   otherwise ensure that Legg Mason complied with Rule G-36.