Salomon Smith Barney

Salomon Brothers

Former type	Acquired
Industry	Financial services
Fate	Acquired by Travelers Group in 1998
Successor	Salomon Smith Barney (1998-2004), Smith Barney (2003 - 2009), Morgan Stanley Smith Barney (2009-2012), Morgan Stanley Wealth Management (since 2012)
Founded	1910
Founder	Arthur Salomon, Herbert Salomon, Percy Salomon
Defunct	2003 (name dropped by Citigroup)
Headquarters	New York, US
Products	Investment banking
Revenue	$4.018 billion (June 1997)
Net income	$443 million (June 1997)
Number of employees	7,100 (June 1997)

Salomon Brothers was a Wall Street investment bank, known as a bulge bracket company. Founded in 1910 by three brothers (Arthur, Herbert and Percy) along with a clerk named Ben Levy, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm Phibro Corporation and became Salomon Inc. Eventually, Salomon (NYSE:SB) was acquired by Travelers Group in 1998; and, following the latter's merger with Citicorp that same year, Salomon became part of Citigroup. Although the Salomon name carried on as Salomon Smith Barney, which were the investment banking operations of Citigroup, the name was ultimately abandoned in October 2003 after a series of financial scandals that tarnished the bank's reputation.

John Gutfreund became the managing partner in 1978, taking the company public, staying on as CEO. During the 1980s, Salomon was noted for its innovation in the bond market, selling the first mortgage-backed security, a hitherto obscure species of financial instrument created by Ginnie Mae. Shortly thereafter, Salomon purchased home mortgages from thrifts throughout the United States and packaged them into mortgage-backed securities, which it sold to local and international investors. Later, it moved away from traditional investment banking (helping companies raise funds in the capital market and negotiating mergers and acquisitions) to almost exclusively proprietary trading (the buying and selling of , bonds, options, etc. for the profit of the company). Salomon had expertise in fixed income securities and trading based on daily swings in the bond market.