3 ms·
The letter mentions "the problem at Salomon" that almost caused the firm to close. Does anyone know what that was?
by spectre256 12y ago
The letter mentions "the problem at Salomon" that almost caused the firm to close. Does anyone know what that was?
- conover 12y agoBerkshire Hathaway owned a significant stake of Salomon. A rogue trader at Salomon broke Treasury rules and the CEO didn't discipline him. The U.S. Government threatened to bar Salomon from buying U.S. Government bonds which would have destroyed the bank and maybe Berkshire Hathaway. Buffet stepped in and saved the day.