Саломон Бротерс: Американдық инвестициялық банк тарихы мен жаңа өрлеуі

Former American investment bank

Salomon Brothers, Inc., was an American multinational bulge bracket investment bank headquartered in New York City. It was one of the five largest investment banking enterprises in the United States and a very profitable firm on Wall Street during the 1980s and 1990s. Its CEO and chairman at that time, John Gutfreund, was nicknamed "the King of Wall Street". Salomon Brothers served many of the largest corporations in America. It was a leading underwriter of corporate bonds and one of the top firms in futures and options (known as "derivatives") and in securitization in a range of asset classes including commercial real estate securities. The bank was famed for its "cutthroat corporate culture that rewarded risk taking with massive bonuses, punishing poor results with a swift boot." In Michael Lewis' 1989 book Liar's Poker, the insider descriptions of life at Salomon gave way to the popular view of banking in the 1980s and 1990s as a money focused and work intensive environment. It was acquired by Travelers Group in 1997, which in turn became part of Citigroup the next year. In February 2022, it was announced that the Salomon Brothers brand will be revived by a group of former employees and execs and operate as full service investment bank again.

Founded in 1910 by Arthur, Herbert, and Percy Salomon and a clerk, Ben Levy. The founding Salomon Brothers are descendants of Haym Salomon, primary financier of the American Revolutionary War, Consul to France, and childhood friend to Robert Morris, Founding Father and Superintendent of Finance of the United States. The company remained a partnership until the early 1980s. William Salomon, the son of Percy Salomon, became a managing partner and the head of the company in 1963. In 1967, Salomon Brothers sponsored Muriel Siebert, the first woman to obtain a trading license on the floor of the New York Stock Exchange.

In 1975, Salomon Brothers was formally recognized by other top investment banks as a "bulge bracket" firm, meaning it was one of the leaders in investment banking. In 1979, Salomon Brothers scored a major coup when IBM insisted that Morgan Stanley accept Salomon Brothers as co manager on a $1 billion debt issue for a new generation of IBM computers. Morgan Stanley demanded sole management, but IBM affirmed Salomon Brothers’ role as co manager. In 1975, Salomon Brothers also aided the state’s efforts to save New York City from bankruptcy. When the Municipal Action Committee (MAC) was established and bonds were created in its name, Salomon Brothers and Morgan Guaranty Trust organized syndicates for the $1 billion bond sale. Both of the organizations were able to place the bonds successfully.

In 1991, U. S. Treasury Deputy Assistant Secretary Mike Basham learned that Salomon trader Paul Mozer had been submitting false bids in an attempt to purchase more treasury bonds than permitted by one buyer during the period between December 1990 and May 1991. Salomon was fined $190million for this infraction, and required to set aside $100million in a restitution fund for any injured parties. In December 1993, Mozer was sentenced to four months in a minimum security prison and fined $30,000. CEO Gutfreund left the company in August 1991 and a U. S. Securities and Exchange Commission (SEC) settlement resulted in a fine of $100,000 and Gutfreund being barred from serving as a chief executive of a brokerage firm. Warren Buffett briefly stepped into the CEO and chairman position. Buffett later promoted Deryck Maughan to take over as chairman and CEO. The scandal was then documented in the 1993 book Nightmare on Wall Street. The firm was acquired by Travelers Group in 1997. The firm's top bond traders called themselves "Big Swinging Dicks," and were the inspiration for the book The Bonfire of the Vanities, by Tom Wolfe. The expression "Big Swinging Dick(s)" itself was used to refer to the Salomon bankers who dominated the game of extraordinary profit making. The last years of Salomon Brothers, culminating in its involvement with Long Term Capital Management, is chronicled in the 2007 book A Demon of Our Own Design.

Salomon (NYSE:SB) was acquired by Travelers Group in 1997; and, following the latter's merger with Citicorp in 1998, Salomon became part of Citigroup. The combined investment banking operations became known as Salomon Smith Barney. 7 World Trade Center, which had served as the headquarters for Salomon Brothers, continued to be used as the company's main office after the company was merged into Salomon Smith Barney. Although the Salomon name carried on as Salomon Smith Barney, the investment banking operations of Citigroup, the division was renamed on 7 April 2003 to "Citigroup Global Markets Inc." As of 2020, Citigroup no longer owns the Salomon Brothers trademark, according to the records provided by the United States Patent and Trademark Office.

Michael Lewis, American author and financial journalist, author of The Big Short, worked as a bond salesman in London for Salomon Brothers in the late 1980s. John Meriwether, American hedge fund manager, head of fixed income trading and was promoted to vice chairman in 1988. Michael Corbat, CEO of Citigroup from 2012 to 2021, began his career in the mortgage department in 1983. Bill Browder British American Financier and political activist. Founder and CEO of Hermitage Capital Management