bonds enabled Salomon Brothers to earn a record $500 million on $1.2 billion in revenues in
1991 (Loomis, 1997). With the highs in life, come the lows. During the same year, Salomon
Brothers reaped the benefit of financial win-falls, but it also saw the birth of a major Wall Street
scandal that almost brought the company to the brink of collapse like their former counter parts
Drexel. This scandal involved United States Treasury rules for auctions, which stated that no
single buyer could bid on more than 35-percent of the total offered auction (Loomis, 1997). This
is where Salomon Brothers went astray. They bid for itself and as a broker for individual clients
up to 35-percent.