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Smith Barney is an American-based global stock brokerage, investment banking and asset management services company owned by the Citigroup.
Origins
Smith Barney & Co. was formed in 1938 through the merger of Carles D. Barney & Co., founded in 1873, and Edward B. Smith & Co., founded in 1892. In the late 1980's the retail brokerage firm Smith Barney was owned by Primerica Financial Services. Sandy Weill's company Commercial Credit purchased Primerica in 1988, for $1.5 billion. In 1992, Weill paid $722 million to buy a 27 percent share of Travelers Insurance. By the end of 1993, the merged company was known as Travelers Group Inc., and was wholly owned by Weill. In September 1997, Travelers acquired Salomon Inc., (parent company of Salomon Brothers Inc.) for over $9 billion in stock, and merged it with its own investment arm to create Salomon Smith Barney.
In April 1998 Travelers Group announced an agreement to undertake a $76 billion merger between Travelers and Citicorp, creating the largest single financial services company in the world. It now has over one trillion U.S. dollars in assets.
Return of the Smith Barney name
The firm's brand name remains in the mind of American consumers through television commercials in which actor John Houseman proclaimed "Smith Barney makes money the old-fashioned way — we earn it."
The name was tarnished by claims of unethical practices between research and investment banking divisions during 2002, led to a separation of the two businesses, moving the investment banking business to the Global Corporate and Investment Bank, and leaving the research and Private Client Services under the name Smith Barney. The consequent investigation also led to a settlement fine of $400 million.
See also
External links
"Smith Barney"