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.