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 This timeline represents the history of this business until it became a part of the Citigroup family. 1910 With $5,000 in savings and a small family loan, Arthur, Herbert and Percy Salomon leave their father's firm and start their own business, Salomon Brothers, at 80 Broadway in New York City. Salomon joins forces with Morton Hutzler, an established firm with a seat on the New York Stock Exchange. Salomon Brothers & Hutzler is born. Salomon Brothers & Hutzler registers with the Treasury and becomes one of the first primary dealers in U.S. government securities. 1929 The U.S. stock market crashes and Salomon Brothers & Hutzler weathers the storm for two reasons:
1940s In the United States, the government raises funds for World War II through Treasury auctions. This substantially increases the government bond business and the role played by Salomon and other investment houses specializing in these securities. By the end of World War II, Salomon Brothers & Hutzler has grown substantially. The 1950s and 1960s Through the vision and guidance of William "Billy" Salomon, son of one of the founding brothers, Salomon Brothers expands and automates its back office and operation. Salomon's use of technology equips the firm to handle increased volume, as well as better serve the ever-changing needs of its customers. November 1963: Billy Salomon becomes the first managing partner of the firm. Salomon's investment in research, technology and talent continues into the 1960s, leading to recognition within the financial community. 1970 Salomon Brothers & Hutzler moves from 60 Wall Street to One New York Plaza, and the firm's name is officially shortened to Salomon Brothers. The firm opens a London office and, soon after that, offices in Hong Kong and Tokyo. 1975 New York City is on the verge of financial collapse. To resolve the crisis, the Municipal Assistance Corporation (christened “Big Mac” by the press) is formed. It issues bonds to pay off holders of city obligations while generating much-needed revenues. The initial underwriting is for $1 billion, making it the largest municipal issuance in history. Salomon Brothers is selected to manage the offerings from the investment banking side. 1978 John Gutfreund is named successor to Billy Salomon. 1980s Throughout the 1980s, Salomon Brothers expands its role as an innovator within the financial industry. The highlights of this decade include:
Deryck C. Maughan, former head of Tokyo operations, is named Chief Operating Officer in 1991. Warren Buffet, a director and the largest shareholder, is named Chairman and CEO in 1991, and Maughan becomes Chairman and CEO in 1992. The firm’s commitment to computer technology and infrastructure takes a dramatic leap forward in the early part of the decade. Salomon Brothers relocates all its support operations to Tampa, Florida, where it builds a 130,000-square-foot facility, housing state-of-the-art computer, electrical and telecommunications systems. 1997 November 26: Smith Barney, a wholly owned subsidiary of Travelers Group, merges with Salomon Inc. to form Salomon Smith Barney. The firm combines the fundamental strengths of two leaders in the financial community whose vast experience, breadth of resources and global intellectual capital positions it to be a market leader in the next millennium. 1998 October 8: Travelers Group and Citicorp merge to form Citigroup Inc., a global leader in financial services. |