The Rise and Fall of Salomon Brothers

The Rise and Fall of Salomon Br others Treasury Bond Scandal- 1991 Executive Summary Salomon Brothers was at one time, the largest bulge bracket firm on mole Street. Although it offered a number of financial services, it had established its name finished the legacy of stupefy trading. Its bond trading department boasted of iconic traders of 1980s era- John Meriwether and Myron Sholes. Salomon Brothers can be considered as the fall flat scram of mortgaged back securities trading on the rampart Street, an area in which it was a near monopolist for a long time with not much competition from other firms. In 1981, Salomon Brothers which operated as partnership was taken over by Phibro Corporation and became known as Phibro-Salomon. With a lot of ups and downs in its fortune during the late 1980s and early 1990s, finally in 1997, it merged with Citigroup and became their Investment Banking arm called Salomon Smith Barney. Finally the instauration of the name of Salomon ceased when Citigroup decided to drop the name in 2003 and brand its investment bank and underwriters as Citigroup Global Markets.

We chose to work on the topic The Rise and Fall of Salomon Brothers as this topic offers an cleverness into the development of a particular securities market- the Mortgaged backed securities, the potentiality of the market player, the culture of the firm and finally the scandal which served as the turning point of fortunes of once the market leader or metaphorically- the final nail in the coffin. Background Salomon Brothers was founded in current York City in 1910 when three brothers-Arthur, Herbert, and Percy Salomon broke away from their father Ferdinands money-brokerage operation and went into business for themselves. The company was primarily a bond trading firm. The private company entered equities in the mid-1960s and between 1962 and 1964, Salomon to a greater extent than tripled its underwriting business, from $276 million to $873 million. They entered investment banking in the early... If you want to get a full essay, order it on our website: Ordercustompaper.com

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