Salomon Smith Barney

DESPITE ITS REPUTATION as an investment company that has produced solid results for its clients, Salomon Smith Barney (SSB) became mired in the corruption and greed that shook the securities industry in the 1990s. Smith Barney, which was founded in the late 19th century when the firms of Edward B. Smith and Charles Barney combined, was bought by Travelers Group in 1992. Travelers united Smith Barney with Salomon, Inc. Scandal hit the company in 1991 when Salomon's Paul Mozer set up a scam in which he used unsuspecting clients to buy more two-year Treasury notes than the legal limit allowed by the federal government. Of the $12.26 billion sold at a Treasury auction on May 22, 1991, Salomon bought 90 percent. As a result, the ...