Jamie Securities is also a large arbitrage firm.

Some arbitragers said several small arbitrage firms had closed largely because of UAL losses.

Before that, he had headed his own arbitrage firm, Wyser-Pratte & Company, for 20 years.

Wall Street executives said many arbitrage firms suffered large trading losses.

In the 1980's he founded Jamie Securities, his own arbitrage firm, and hit his stride as one of the top traders during that period.

The arbitrage firms that have received their payments, for example, have been setting aside much of their cash in Treasury bills.

An Investigation Confirmed "Are you finding problems with such issues as collusion, say among arbitrage firms or other investors, in your investigations?"

The president of one arbitrage firm, who requested anonymity, said Citibank and Chase Manhattan came up $2 billion short in raising money for the deal.

The S.E.C. study said five firms accounted for 65 percent of the net profits earned last year among the 31 arbitrage firms surveyed.

In addition, the study said the 31 arbitrage firms earned an estimated $1.11 billion from 1984 to 1986.