Rescuing Salomon Was One Thing, But Running It...

No question about it, Warren E. Buffett saved Salomon. When the Feds collared Salomon Inc. last August for submitting false Treasury auction bids, Buffett, the firm's largest shareholder with $700 million in stock, promptly replaced John H. Gutfreund as chief executive and chairman. He held candid press conferences, wooed congressmen with folksy mea culpas, threw open the firm's doors to federal investigators, and, more than anything, restored the confidence of regulators, shareholders, and employees.

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