The Warren Buffett Scandal That Nearly Destroyed Wall Street

The Warren Buffett Scandal That Nearly Destroyed Wall Street

In 1991, Warren Buffett (CEO of Berkshire Hathaway) got caught up in a scandal that nearly destroyed his career.

Salomon Brothers (of which Buffett was a director and major shareholder) had broken U.S. securities laws around trading of Treasury Bonds, but hid their wrongdoing from the Federal Reserve, the Treasury and the SEC.

In the fallout that followed, Warren Buffett was almost faced with being the figurehead of an imploding Salomon, an event that would have tarnished his reputation forever.

So, how did Buffett turn the situation around?