BROWSE

Salomon Brothers

Definition

Salomon Brothers was an investment bank founded in 1910 by three Jewish-American brothers along with a clerk named Ben Levy, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm Phibro Corporation and became Salomon Inc. Eventually, Salomon was acquired by Travelers Group in 1998; and, following the latter's merger with Citicorp that same year, Salomon became part of Citigroup. Although the Salomon name carried on as Salomon Smith Barney, which were the investment banking operations of Citigroup, the name was abandoned in October 2003 after a series of financial scandals that tarnished the bank's reputation.

What is 'Salomon Brothers'

Salomon Brothers, founded in 1910, was once one of the largest Wall Street bulge bracket financial service companies. In 1981, it was acquired by Phibro Corporation and became known as Phibro-Salomon. In 1997, the bank merged with Smith Barney, a subsidiary of Travelers Group to form Salomon Smith Barney. Immediately following, the bank merged with Citigroup, where Salomon Smith Barney served as the investment banking arm. In 2003, the Citigroup name was adopted.

Explaining 'Salomon Brothers'

Although Salomon Brothers provided a wide range of financial services, the bank established its legacy through its fixed income trading department. Perhaps the original founding fathers of high yield bond trading, along with Drexel Burnham Lambert, the Salomon bond arbitrage group established the trading careers of John Meriwether and Myron Sholes.

Michael Lewis' Liar's Poker (1990) depicts the high pressure bond trading culture at Salomon Brothers.


Further Reading




Q&A About Salomon Brothers


Who were some of its founders?

The three brothers who founded Saloman Bros., Arthur, Herbert & Percy all worked for Goldman Sachs before starting their own company along with Ben Levy who served as a clerk to them at Goldman Sachs & Co..

Which department established its legacy through fixed income trading at Salomons brothers ?

Fixed income trading department established its legacy through fixed income trading at salomons brothers .

What happened next?

In 23, the Citigroup name was adopted.

What was Salomon Brothers?

Salomon Brothers was once one of the largest Wall Street bulge bracket financial service companies.

Who acquired Salomon Brothers in 1981?

Phibro Corporation acquired the bank in 19 and it became known as Phibro-Salomon.

How many years did it take for Citigroup to adopt the name Citigroup after merging with Smith Barney and acquiring Salomon Brothers' investment banking arm?

Two years.

What happened to Salomon Brothers in 1997?

The bank merged with Smith Barney, a subsidiary of Travelers Group to form Salomon Smith Barney.

What is Salomon Brothers?

Salomon Brothers, Inc. was an American multinational investment bank headquartered in New York City. It was one of the five largest investment banking enterprises in the United States and the most profitable firm on Wall Street during the 198s and 199s. Its CEO and chairman at that time, John Gutfreund, was nicknamed "the King of Wall Street".

When did Salomon Brothers start?

The company started in 19.

Why did they change their name from Citigroup to CitiGroup on November 9, 24?

They changed their name because of a major rebranding effort that included changing all its subsidiaries' names from "Citigroup" to "Citi."

What does "Saloman" mean?

The name is derived from Solomon which means peaceable or peaceful. This refers to peace between Germany (then Prussia) and France after World War I when they signed a treaty called Treaty of Versailles which ended World War I. The treaty required Germany to pay reparations for war damages caused by them during WWI including paying back money borrowed from other countries like France so that they can pay their debts owed to other countries like England etc... A lot of people lost their jobs because Germany could not repay loans due to lack of funds due to reparations payments so this led many Germans out of work hence leading up to Hitler's rise into power later on since he promised employment opportunities for everyone making him popular among Germans but his ideas were very dangerous since he wanted world domination through war hence leading up to WWII where millions died including 6 million Jews killed in concentration camps under Hitler's orders