1
 Boston Co., the upper-crust financial services concern
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span

2
 that was rocked by a management scandal late last year,
1
elaboration-object-attribute-e

3
 has had a sharp drop in profitability 
5002
Same-Unit

4
-- mainly because a high-risk bet on interest rates backfired.
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reason

5
 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., 
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span

6
which has relied heavily on the banking and money management unit's contributions in recent years. 
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span

7
In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million,
5006
Comparison

8
 while Shearson managed net income of just $96 million.
5006
Comparison

9
 Shearson doesn't break out the earnings of its subsidiaries. 
5009
antithesis

10
But people familiar with Boston Co. 's performance say 
5008
attribution

11
the unit had profit of around $17 million for the third quarter,
5008
span

12
 after barely breaking even for the first six months.
11
background

13
 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period.
5012
Comparison

14
 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3,
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span

15
 citing problems in the company's aggressively managed securities portfolio.
14
elaboration-additional

16
 John Kriz, a Moody's vice president, said 
17
attribution

17
Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities.
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span

18
 The mismatch exposed the company to a high degree of interest-rate risk,
5024
span

19
 and 
5020
Same-Unit

20
when rates moved unfavorably 
5018
span

21
-- beginning late last year 
5017
Sequence

22
and continuing into this year -- 
5017
Sequence

23
it cost them, 
5019
span

24
Mr. Kriz said. 
5024
attribution

25
 Mr. Kriz noted 
5029
attribution

26
that Boston Safe Deposit has taken some actions 
5027
span

27
to better control asset-liability management 
5026
List

28
and improve controls in general,
5026
List

29
 and we think 
30
attribution

30
these will serve to improve credit quality.
5028
span

31
 As some securities mature 
5031
Sequence

32
and the proceeds are reinvested,
5031
Sequence

33
 the problems ought to ease,
5032
span

34
 he said.
5032
attribution

35
 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market.
5035
span

36
 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year 
5037
antithesis

37
-- except to deny a published report
5037
span

38
 that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results.
37
elaboration-object-attribute-e

39
 An accounting controversy at the end of last year forced Boston Co. to admit
40
attribution

40
 it had overstated pretax profits by some $44 million.
5039
span

41
 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer.
5044
span

42
 The executives were accused of improperly deferring expenses and booking revenue early, in an effort
5040
span

43
 to dress up results 
42
elaboration-object-attribute-e

44
-- and perhaps bolster performance-related bonuses.
5040
elaboration-object-attribute-e

45
 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants 
5042
List

46
and accused Shearson of conducting a witch hunt.
5042
List

47
 Mr. Kriz of Moody's said
5050
attribution

48
 the problems in the securities portfolio stem largely from positions
5050
span

49
 taken last year.
48
elaboration-object-attribute-e

50
 The company's current management found itself locked into this, 
5048
span

51
he said.
50
attribution

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example

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elaboration-object-attribute-e

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Comparison

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elaboration-additional-e

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18
evidence

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purpose

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33
consequence-n

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elaboration-additional

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antithesis

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elaboration-additional

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Contrast

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elaboration-additional

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consequence-n

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elaboration-additional

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elaboration-additional

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Same-Unit

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