Salomon Brothers

Salomon Brothers was an American investment bank that was bought in 1998 by the Travelers Group, Citigroup today.

History

Salomon Brothers was founded in 1910 by Arthur, Herbert and Percy Salomon and was located next to Wall Street. In the 70s, Salomon Brothers was one of the world's biggest investment banks. In the 1980s, the Bank developed the first collateralized with real estate Bonds ( Mortgage Backed Securities ) and led them in the bargain, and she had great economic success. These bonds were also the focus of the financial crisis in 2007.

Later, the business of the company shifted toward the proprietary trading.

At the beginning of the 90s Salomon Brothers was the main accused in the scandal surrounding the market manipulation for U.S. government bonds. This was followed by a penalty of around 290 million dollars, the Solomon weakened in such a way that the money was swallowed by the House Financial Group Travelers. Travelers turn later merged with Citigroup.

Others

Michael Bloomberg worked directly after his studies, first at Salomon Brothers.