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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.

The U.S. stock market crashes and Salomon Brothers & Hutzler weathers the storm for two reasons:

* The firm holds only a small position in the stock market.
* Salomon Brothers refuses to carry margin accounts, which ultimately lead to the downfall of many investors.

Salomon Brothers further benefits when banks turn to bonds as a "safe haven" after the crash.

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.

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.

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.

John Gutfreund is named successor to Billy Salomon.

Throughout the 1980s, Salomon Brothers expands its role as an innovator within the financial industry. The highlights of this decade include:

* Introduction of Collateralized Mortgage Obligations (CMOs).

* The merger of Salomon Brothers with Philip Brothers – a marriage of "Salomon-ingenuity" and "Philip-cash" that gives Salomon Brothers leverage to make great headway into global investment banking, mortgage-backed securities, as well as other areas of opportunity.

* The first public offering of "CARS" – a security backed by automobile loans.

* Introduction of Salomon Brothers Broad Investment Grade Bond Index ("BIG").

* Launch of the Salomon Brothers World Bond Index – a valuable tool used to measure returns of both single and multicurrency portfolios.

* The deregulation of the capital markets within the United Kingdom, marking the beginning of unprecedented opportunities for firms prepared to make the most of them. Ultimately, Salomon joins the London Stock Exchange and becomes a primary dealer there.

* The development of Sophisticated Analytical Applications, including Yield Book, a powerful fixed-income analytics system that provides Salomon Brothers with a competitive advantage in the area of bond portfolio analysis.

The 1990s
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.

1991, Salomon was caught submitting false bids to the U.S. Treasury by Deputy Assistant Secretary Mike Basham, in an attempt to purchase more Treasury bonds than permitted by one buyer between December 1990 and May 1991. It was fined 290 million dollars, the largest fine ever levied on an investment bank at the time, weakening it and eventually leading to its acquisition by Travelers Group. The scandal is covered extensively in the book Nightmare on Wallstreet.

Citibank employee was accused of helping Raul Salinas, brother of Mexican President Carlos Salinas, sneak out of Mexico funds acquired by illegal means.

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.

In November 2007 it became public that the Citigroup is heavily involved in the Terra Securities scandal, which involved investments by eight municipalities of Norway in various hedge funds in the United States bond market.

August 1998, Citigroup Inc (C.N) agreed to pay nearly $18 million in refunds and fines to settle accusations by California Attorney General Jerry Brown that it wrongly took funds from the accounts of credit card customers.

October 8: Travelers Group and Citicorp merge to form Citigroup Inc., a global leader in financial services.

Oct. 30, 1998, the General Accounting Office issued a report giving detailed information showing that the bank ignored the law and its own internal procedures in assisting Raul Salinas, brother of the former president of Mexico, to move between $90 million and $100 million of suspected drug money out of Mexico.

Citigroup Inc. (1998 – present)
The timeline below represents major events since Citicorp and Travelers merged in 1998.

The formation of Citigroup in 1998 created a new model of financial services organization to serve its clients’ financial needs. As the company continues to grow and evolve, it’s increasingly evident that such a large, complex grouping of businesses can indeed succeed. With 275,000 employees working in more than 100 countries and territories, Citigroup’s globality and diversity contribute to its continued success.

October 8: All Citicorp and Travelers Group divisions merge to become Citigroup Inc.

Citibank launches CitiDirect Online Banking, the first multi-product, multi-geographic Internet banking system.

March: Nikko Salomon Smith Barney Ltd., a joint venture of Salomon Smith Barney and Japan’s Nikko Securities Co., Ltd., begins operations in Tokyo.

March 1: Citibank purchases Financiero Atlas, the No. 2 consumer finance company in Chile.

September: Citigroup and its Ripplewood Holdings partners win right to purchase Long-Term Credit Bank of Japan (later renamed Shinsei Bank), the first foreign owners of a Japanese bank.

All U.S. and Canadian branches of Commercial Credit are rebranded CitiFinancial.

October: Retired U.S. Treasury Secretary Robert E. Rubin joins the Office of the Chairman.

November: Citigroup acquires a stake in Japanese online brokerage firm Nikko Beans, Inc.

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