March 25, 1995 |
Capitalizing in part on lessons learned while serving as financial adviser to bankrupt Orange County, Salomon Bros. Inc. on Friday said it would buy up to $8.1 billion of complex derivative investments and repackage them as less-risky "plain vanilla" bonds. Earlier this year, Salomon helped Orange County sell more than $5 billion risky derivative securities from its loss-riddled investment pool and replace them with short-term, money-market securities.
March 11, 1995 |
The Resolution Trust Corp., the thrift cleanup agency, proposed Friday to bar Salomon Bros. Inc. and Morgan Stanley & Co. from future agency contracts, citing alleged violations of agency rules prohibiting gifts to and entertainment of RTC employees, the agency said in a statement. The proposed exclusions are the first results of a continuing investigation by the RTC of practices of firms that have provided financial advisory and underwriting services to the agency.
December 20, 1994 |
How much is left in the Orange County investment fund-- really ? Salomon Bros. officials acknowledged Monday that they erred last week in their initial estimate of the value of the bankrupt fund's securities and the total amount of loans it owed. But they say the error does not change the most important number--the $5.03 billion that the brokerage figures to recover for fund investors by liquidating the portfolio's bonds.
December 19, 1994 |
In 16 years at Salomon Bros., William D. Rifkin has had a front-row seat to some of the best-known corporate takeovers and massive bankruptcies of the past decade. But being called in to help straighten out Orange County's multibillion-dollar financial mess was another matter. "I am used to looking at the balance and income sheets of a corporation. The finances of a municipality are completely different," Rifkin said in a recent telephone interview.
December 17, 1994 |
Salomon Bros. unloaded $1 billion in securities from Orange County's bankrupt investment fund on Friday--double Thursday's pace--while cautioning that the hardest sales lie ahead. In the second day of the court-approved liquidation process, Salomon auctioned longer-term conventional bonds with a principal value of $566 million, and also sold the first of the portfolio's complex "derivative" securities: $440 million in foreign bank-issued "structured" certificates of deposit.
December 14, 1994 |
Former state Treasurer Thomas W. Hayes, now a consultant to Orange County, and William D. Rifkin, a managing director of mergers and acquisitions with Salomon Bros. in New York, laid out their strategy Tuesday for liquidating the county's investment pool. When they are done, Rifkin promised, "it's all going to go."