Salomon Rebounds With 18.5% Higher Net
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Salomon Inc. said its second-quarter profit rose 18.5%, signaling the Wall Street firm’s turnaround after the Treasury bond trading scandal that broke a year ago.
Salomon said it earned $211 million, or $1.68 a share, compared to $178 million, or $1.43 a share, in the corresponding 1991 quarter.
Although the scandal hurt its business, the company said investment banking revenues were higher in the second quarter than in the previous two periods.
Low interest rates--nurtured by rate cuts at the Federal Reserve in December and this month--enhanced bond trading profits for many Wall Street firms.
The New York company chalked up the advance despite a $185-million, one-time charge to cover a $290-million government settlement that allowed Salomon to avoid criminal prosecution in the bond scandal.
Second-quarter revenue increased to $1.31 billion from $952 million a year earlier.
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