Salomon Brothers

DEFINITION of '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.

BREAKING DOWN '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.

RELATED TERMS
  1. Salomon Brothers World Equity Index ...

    An index that measures the performance of fixed-income and equity ...
  2. Long-Term Capital Management - ...

    A large hedge fund led by Nobel Prize-winning economists and ...
  3. Lewis Ranieri

    Former bond trader and former vice chairman of Salomon Brothers ...
  4. Michael Bloomberg

    Michael Bloomberg is one of the wealthiest persons in the world ...
  5. Liar's Poker

    A game often associated with Wall Street traders who use statistical ...
  6. Financial Information Exchange ...

    A financial information exchange (FIX) protocol system used by ...
Related Articles
  1. Markets

    Economist Guide: 3 Lessons Adam Smith Teaches Us

    Learn three critical lessons about economics from 18th century philosopher Adam Smith, considered by many to be the father of economics.
  2. Insights

    Adam Smith's Legacy

    Adam Smith popularized many of the ideas that created classical economics.
  3. Markets

    Adam Smith: The Father Of Economics

    This free thinker promoted free trade at a time when governments controlled most commercial interests.
  4. Markets

    Adam Smith And "The Wealth Of Nations"

    Adam Smith's 1776 classic may have had the largest global impact on economic thought.
  5. Investing

    10 Great Investment Books For The Holidays

    Looking for the perfect gift? Here's a list of informative reads you'll want to share with others this season.
  6. Trading

    Bulge Bracket Vs. Mid Market Vs. Boutique Investment Banks

    Obtain a detailed description of the primary differences between the various types of investment banks: bulge bracket, middle market and boutique.
  7. Managing Wealth

    Career Choice: Bulge Bracket Vs. Boutique Bank

    Bulge bracket banks offer higher salaries and prestige. But boutique banks are rapidly gaining market share and may offer better work/life balance and job security.
  8. Retirement

    Pages From The Bad CEO Playbook

    Excess compensation, golden parachutes, tunneling and IPO spinning make these bad executives even worse.
  9. Managing Wealth

    7 Investing Mistakes Warren Buffett Regrets

    Even the “Oracle of Omaha” has made a few money mistakes investing, from losing billions by passing on stock options to companies destined to fail.
  10. Investing

    Smith & Wesson Stock Declines Ahead of Q4 Earnings (WSWHC)

    Wall Street expects the gun maker to deliver year-over-year increases in both revenue and earnings.
RELATED FAQS
  1. When is it beneficial for underwriters to sell stock below the minimum rate?

    Learn when selling stock below the minimum rate can be beneficial. Find out how the 1987 market crash affected an offering ... Read Answer >>
  2. As the grantee of my dad's house, can my brother sell the house without the beneficiary's ...

    My dad passed away on October 26, 2013. The house he owned was quitclaim deeded to my brother as the g... Read Answer >>
  3. What does the term 'invisible hand' refer to in the economy?

    Discover and understand the concept of the "invisible hand" as explained by Adam Smith, considered the founder of modern ... Read Answer >>
  4. Who coined the term "entrepreneur"?

    For one, it wasn't Adam Smith. One person strangely overlooked in Smith's free market masterpiece, The Wealth of Nations, ... Read Answer >>
  5. How do I transfer all the stock of my company to my brother?

    I started a Shell corporation in 2014 with myself as the sole stockholder. There is no revenue to date... Read Answer >>
  6. My husband has inherited a freedom savings bond purchased in Oct. 1968 by his brother ...

Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center