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. Adam Smith

    An 18th-century philosopher and free-market economist famous ...
  2. Bulge

    A fast increase in a security's or commodity's trading price. ...
  3. Sidecar Investment

    An investment strategy in which one investor allows a second ...
  4. Jamie Dimon

    The chairman, CEO and former president of JPMorgan Chase & ...
  5. Bulge Bracket

    A slang term used to describe the company or companies that issued ...
  6. Robert H. Smith School of Business ...

    The school of business at the University of Maryland. The Robert ...
Related Articles
  1. Active Trading

    Buffett Scandals: Then And Now

    Controversy is nothing new for one of the most celebrated investors in America.
  2. Options & Futures

    Brokers and Online Trading: Full Service Or Discount?

    What really sets brokers apart is whether they are full service or discount brokerages. Full-Service Broker The full-service category includes all the names that spring to mind when we think ...
  3. Credit & Loans

    Credit Crisis: Wall Street History

    By Brian PerryA historical understanding of Wall Street will provide a starting place for analyzing the credit crisis that changed the financial landscape forever. Therefore, this first chapter ...
  4. Economics

    Adam Smith's Legacy

    Adam Smith popularized many of the ideas that created classical economics.
  5. Entrepreneurship

    Buffett's Biggest Missteps

    Looking at the track record of this famously successful investor, it is clear that even keen investors can make the same mistakes more than once.
  6. Active Trading Fundamentals

    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. Retirement

    On This Day In Finance: June 5 - The Birthday Of Adam Smith

    The birthday of Adam Smith.
  8. Investing

    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.
  9. Stock Analysis

    When Bad PR Means Something More

    Last week's high profile resignation of a player in a major financial institution may have cracked a veneer that reveals something more troubling at work, writes Chad Fraser of Investing Daily. ...
  10. Stock Analysis

    Wall Street Finally Gets Its Comeuppance

    For years, we thought the investment bankers who helped cause the Great Recession would have the last laugh…but the cannons are finally turning on them, and in a big way, writes MoneyShow edito ...
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. 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 >>
  3. Who discovered the law of supply and demand?

    Learn how the law of supply and demand affects the economy. This important economic principle is hundreds of years old but ... Read Answer >>
  4. My husband has inherited a freedom savings bond purchased in Oct. 1968 by his brother ...

  5. Why do companies merge with or acquire other companies?

    Some of the reasons for mergers and acquisitions (M&A) include:1. Synergy: The most used word in M&A is synergy, ... Read Answer >>
  6. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Learn how you can invest in the corporate bond market without investing a large amount of capital through bond funds and ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center