Salomon Brothers was a bulge bracket, Wall Street investment bank. Founded in 1910, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm then known as Phibro Corporation. This proved a "wag the dog" type merger as the parent company became first Phibro-Salomon and then Salomon Inc. and the commodity operations were sold. Eventually Salomon (NYSE:SB) was acquired by Travelers Group in 1998, and follow...
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Salomon Brothers was a bulge bracket, Wall Street investment bank. Founded in 1910, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm then known as Phibro Corporation. This proved a "wag the dog" type merger as the parent company became first Phibro-Salomon and then Salomon Inc. and the commodity operations were sold. Eventually Salomon (NYSE:SB) 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 ultimately abandoned in the early 2000s.
John Gutfreund became managing partner in 1978 and took the company public, staying on as CEO. During its time of greatest prominence in the 1980s, Salomon became noted for its innovation in the bond market, selling the first mortgage-backed security, a hitherto obscure species of...
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