Salomon's scandal; Bond-trading deals rock Wall Street
Aug. 16, 1991
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If you thought the end of the greed decade meant the end of scandals on Wall Street, think again.
Salomon Bros., the most powerful U.S. government bond-trading firm in the world, just admitted that it lied to the government and violated rules in Treasury note and bond auctions, the biggest such auctions in the world. At the worst, the scandal could bring down the firm. It also could ruin the careers of Salomon Chairman John Gutfreund and his hand-picked top managers. In any case, it is sure to damage the reputation - for a long time to come - of the most star-studded trading firm on Wall Street.
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Bond fire of the vanities; Bond scandal gives pause to traders
Aug. 26, 1991
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Last Monday's news of a Soviet government coup should have signaled a chance for top bond traders to make a killing in government debt trading. Uncertainty sends investors rushing to buy U.S. Treasury securities. But government securities traders weren't rejoicing. In fact, last Monday's weekly Treasury bill auction took place in an environment of suspicion, fear and caution.
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Salomon begins steps to rectify past
Sept. 6, 1991
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Warren Buffett, Mr. Clean, added more spit and polish to the act at Salomon Bros. on Thursday by severing all ties to the firm's tainted past.
During a four-hour meeting, the Salomon board of directors, led by CEO Buffett: - Decided it would not give any compensation to the top four executives forced to resign. The board also said it would not pay legal expenses of former CEO John Gutfreund, former president Thomas Strauss, former vice chairman John Meriwether or former chief legal officer Donald Feuerstein.
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Buffett's tough deal; He invests his reputation to bridge the gap at Salomon; Dirty job consumes top investor
Sept. 18, 1991
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When it comes to his multibillion-dollar empire, Omaha investor Warren Buffett prefers to be a hands-off manager. He rarely calls CEOs of the companies he invests in.
