Smith Barney

Smith Barney was a global financial services firm that operated from 1938 to 2009, providing a range of investment and financial services to individuals, corporations, and institutions. The company was founded by Charles Barney and Edward Smith, and it quickly established itself as a major player in the Wall Street financial community, with notable competitors including Morgan Stanley, Goldman Sachs, and J.P. Morgan. Over the years, Smith Barney was involved in various high-profile transactions, including the IPO of Microsoft and the acquisition of Shearson Lehman Hutton by American Express. The company's operations were also influenced by key events such as the Great Depression, World War II, and the 1987 stock market crash, which had a significant impact on the global economy and the financial services industry, including companies like Lehman Brothers, Bear Stearns, and Merrill Lynch.

● History

The history of Smith Barney dates back to 1938, when Charles Barney and Edward Smith founded the company as a brokerage firm. During the 1950s and 1960s, the company experienced significant growth, with the number of employees increasing from a few hundred to several thousand, and the company's operations expanding to include investment banking, research, and asset management, with notable clients including IBM, General Motors, and Procter & Gamble. In the 1970s and 1980s, Smith Barney continued to expand its operations, with the company acquiring several other financial services firms, including Harris Upham & Co. and Shearson Hayden Stone, and establishing partnerships with companies like Salomon Brothers and First Boston. The company's growth was also influenced by key events such as the 1973 oil crisis, the 1980s economic boom, and the 1990s dot-com bubble, which had a significant impact on the global economy and the financial services industry, including companies like Enron, WorldCom, and Tyco International.

● Products and Services

Smith Barney offered a wide range of products and services to its clients, including brokerage services, investment banking, research, and asset management, with a focus on serving the needs of individual investors, corporations, and institutions, such as Pension funds, Endowments, and Foundations. The company's investment banking division provided advisory services on mergers and acquisitions, equity and debt financing, and restructuring, with notable transactions including the IPO of Google and the acquisition of AT&T by SBC Communications. The company's research division provided analysis and recommendations on individual stocks, bonds, and other securities, with coverage of companies like Apple, Amazon, and Facebook. Smith Barney also offered a range of asset management products, including mutual funds, hedge funds, and private equity funds, with investments in companies like Coca-Cola, McDonald's, and Walmart.

● Notable People

Over the years, Smith Barney has been led by several notable individuals, including Sallie Krawcheck, who served as the company's CEO from 2002 to 2004, and James Dimon, who served as the company's CEO from 1996 to 1998, before going on to become the CEO of J.P. Morgan Chase. Other notable individuals who have worked at Smith Barney include Henry Paulson, who served as the company's CEO from 1999 to 2006, before becoming the United States Secretary of the Treasury, and Robert Rubin, who served as the company's CEO from 1990 to 1992, before becoming the United States Secretary of the Treasury under President Bill Clinton. The company has also employed notable analysts and researchers, including Abby Joseph Cohen, who covered companies like Intel, Cisco Systems, and Microsoft, and Byron Wien, who covered companies like IBM, General Electric, and Procter & Gamble.

● Controversies

Like many other financial services firms, Smith Barney has been involved in several controversies over the years, including a notable scandal in the early 2000s, in which the company was accused of issuing biased research reports, with companies like Enron and WorldCom being affected, and the company's analysts being influenced by investment banking relationships with companies like Goldman Sachs and Morgan Stanley. The company was also criticized for its role in the subprime mortgage crisis, with Smith Barney being one of the largest issuers of subprime mortgage-backed securities, and the company's employees being accused of engaging in questionable sales practices, with companies like Lehman Brothers and Bear Stearns also being involved. In addition, the company has faced several lawsuits and regulatory actions, including a notable lawsuit filed by the Securities and Exchange Commission in 2003, which alleged that the company had engaged in improper trading practices, with companies like Merrill Lynch and UBS also being affected.

● Merger and Acquisition

In 2009, Smith Barney was acquired by Morgan Stanley, in a deal worth $2.7 billion, with the combined company being renamed Morgan Stanley Smith Barney, and the company's operations being integrated with those of Morgan Stanley, with companies like Goldman Sachs and J.P. Morgan Chase also being affected by the deal. The acquisition was seen as a strategic move by Morgan Stanley to expand its wealth management business, with the company's CEO, James Gorman, stating that the deal would help to create a "premier wealth management franchise", with companies like Charles Schwab and Fidelity Investments also being affected by the deal. The acquisition also marked the end of Smith Barney as a separate company, with the brand being phased out over time, and the company's employees being integrated into the Morgan Stanley organization, with companies like Bank of America and Wells Fargo also being affected by the deal. Category:Financial services companies