The November 1997 merger of Salomon Brothers and Smith Barney created a firm with approximately $9 billion in capital and a balance sheet of $276 billion. It was the latest example of growth-through-merger by Sanford I. Weill, chairman of the firm's holding company, the Travelers Group. From modest beginnings with Carter, Berlind, Potoma & Weill, a mammoth organization has been created. The next stage is unfolding as the merger of Travelers Group with Citicorp NA is implemented. The combined firm of Salomon Smith Barney, Inc. is a leader in all aspects of equity and fixed income underwriting, global debt underwriting, market making (1,554 domestic stocks and 381 foreign stocks), as well as equity and fixed income research. Its quantitative research group is the oldest and most respected in the industry. Both Salomon Brothers and Smith Barney were well known for some of these activities, and the combination of the firms provides the synergy. The firm's private client group serves as an advisor to one of every six affluent U. S. investors. Client assets held in accounts are approximately $600 billion. New systems include Smith Barney Access, an Internet site allowing clients to view their account activity, the NextGen system connecting 5,800 financial consultants in 172 offices and AssetOne, a non-discretionary, fee-based securities investment program. The parent company, Travelers Group, offers a wide range of investment and asset management services through 68,000 employees around the globe including property and casualty insurance as well as asset-based financing through Commercial Credit Company. Salomon Smith Barney's History The history of this organization is one of the most fascinating stories of modern finance. Twice, from modest beginnings, the chief architect, Sanford Weill, has constructed vast organizations. The son of a Polish dressmaker, Mr. Weill started his Wall Street career as a messenger for Bear Stearns in 1955. In 1960 he joined with three friends to start a small brokerage firm called Carter, Berlind, Potoma and Weill. In the 1970s, this firm expanded by purchasing prestigious but floundering firms such as Hayden Stone, Shearson Hammill and Loeb Rhoades. The firm was sold to American Express in 1981. In 1985 Mr. Weill left American Express and took control of Commercial Credit Corporation, the Baltimore-based factoring and finance company that had been previously acquired by Control Data Corp. In 1988 Commercial Credit acquired Primerica Corp. which had already picked up Smith Barney, Harris Upham, Inc.-an old-line firm tracing its origins to 1873. The acquisition of Travelers Insurance in 1992 and 1993 came next, followed by Aetna Life & Casualty Corp. The moment of true accomplishment came in 1993. This is when Sandy Weill re-purchased Shearson's brokerage and asset management business from American Express. (The Lehman Brothers operation was spun off to American Express shareholders in 1994). In 1997 Travelers Group merged with Salomon Brothers Inc. bringing the Salomon and Smith Barney organizations together. Smith Barney has been traditionally a retail-oriented, domestic firm. Salomon Brothers' strength has been in bond trading and it has a solid overseas presence. It is largely a wholesale operation. The 1998 merger with Citicorp was the beginning of not just a new chapter but a whole new venture. Read about Salomon Brothers Inc.