1991 U.S. Treasury auction bidding scandal
E814277
The 1991 U.S. Treasury auction bidding scandal was a major financial controversy in which Salomon Brothers was found to have violated Treasury auction rules by submitting illegal bids, shaking confidence in Wall Street and prompting regulatory reforms.
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
financial scandal
ⓘ
securities auction scandal ⓘ |
| aimedRegulationAt |
Treasury auction rules
ⓘ
primary dealer conduct ⓘ |
| cause |
submission of illegal bids in Treasury auctions
ⓘ
violation of Treasury auction rules ⓘ |
| consequenceForCompany |
management changes at Salomon Brothers
ⓘ
reputational damage to Salomon Brothers ⓘ threat of losing primary dealer status ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| discovered | 1991 ⓘ |
| endTime | 1991 ⓘ |
| financialMarket | U.S. government bond market ⓘ |
| hasEffect |
changes in auction bidding limits
ⓘ
increased oversight of primary dealers ⓘ loss of confidence in U.S. Treasury auction process ⓘ loss of confidence in Wall Street ⓘ regulatory reforms in Treasury auction procedures ⓘ stricter compliance requirements for securities firms ⓘ |
| industry |
investment banking
ⓘ
securities trading ⓘ |
| involves |
Treasury auction bidding limits
ⓘ
Treasury bonds ⓘ Treasury notes ⓘ U.S. Treasury securities NERFINISHED ⓘ exceeding auction purchase limits ⓘ false customer bids ⓘ primary dealers in U.S. government securities ⓘ |
| legalOutcome |
fines against Salomon Brothers
ⓘ
settlements with U.S. government authorities ⓘ |
| location | New York City ⓘ |
| mainActor | Salomon Brothers NERFINISHED ⓘ |
| notableParticipant | Warren Buffett NERFINISHED ⓘ |
| notableParticipantRole | interim chairman of Salomon Brothers ⓘ |
| partOf |
history of U.S. financial regulation
ⓘ
history of Wall Street scandals ⓘ |
| regulator |
Federal Reserve
NERFINISHED
ⓘ
Securities and Exchange Commission NERFINISHED ⓘ U.S. Department of the Treasury NERFINISHED ⓘ |
| relatedTo |
market manipulation in securities auctions
ⓘ
primary dealer system in U.S. Treasury markets ⓘ |
| startTime | 1990 ⓘ |
| subjectOf |
academic studies on market integrity
ⓘ
congressional hearings ⓘ media investigations ⓘ |
| timePeriod | early 1990s ⓘ |
| triggeredBy | revelations about Salomon Brothers’ bidding practices ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.