Set in June 1991, two months before the announcement of Salomon Brothers', that the company had violated the rules of the Ministry of Finance governing auctions of new Treasury securities. Salomon Vice Chairman John Meriwether must decide how to solve the problems that continue to appear in the management of public bond trading activity of the company. In April 1991, one of his managers admitted that he provided illegal auction in February 1991. Now, a month later, there is increasing speculation in the press that Salomon tried to corner the market in May of 2-year notes. Structured to allow the students to analyze the ethical, legal and regulatory aspects of the situation in John Meriwether. Background information about the history of Salomon Brothers investment banking and industry, government securities markets and the regulation of securities dealers and brokers intertwined with the history of Meriwether's. Accessibility for people with and without experience in investment banking. "Hide
by Dwight B. Crane, Patrick Moreton Source: Harvard Business School 15 pages. Publication Date: March 8, 1992. Prod. #: 292114-PDF-ENG
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