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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 31, 1998
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Salomon Smith Barney Holdings Inc.
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(Exact name of registrant as specified in its charter)
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Delaware 1-4346 22-1660266
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
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388 Greenwich Street, New York, NY 10013
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(Address of principal executive offices) (Zip Code)
(212) 816-6000
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(Registrant's telephone number, including area code)
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SALOMON SMITH BARNEY HOLDINGS INC.
CURRENT REPORT ON FORM 8-K
ITEM 5. OTHER EVENTS.
Salomon Smith Barney Holdings Inc. (the "Company") announced that,
while the Company's private client and asset management businesses have
continued to perform well, extreme volatility in the global fixed income and
equity capital markets has reduced overall trading results and resulted in
after-tax losses of approximately $150 million for the July-August period.
Included in this loss are the following estimated after-tax losses:
- $60 million of Russia-related credit losses;
- $120 million of losses in the U.S. fixed income arbitrage portfolio;
- $180 million of losses in the remaining global arbitrage business.
The Company said it believes it has taken a conservative position with
respect to its remaining Russian exposure. It expects no further material losses
going forward from its U.S. fixed income arbitrage unit, having substantially
completed the risk reduction associated with this unit after a previously
announced restructuring. Further, the Company continues to substantially reduce
the risk being borne by its continuing global arbitrage business.
Certain of the statements contained herein that are not historical
facts are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. The Company's actual results may
differ materially from those included in the forward-looking statements.
Forward-looking statements are typically identified by the words "believe,"
"expect," "anticipate," "intend," "estimate" and similar expressions. These
forward-looking statements involve risks and uncertainties including, but
not limited to, the success of the Company's risk reduction strategies and
changes in general economic conditions.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: September 1, 1998 SALOMON SMITH BARNEY HOLDINGS INC.
By: /s/ Joseph Martinelli
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Joseph Martinelli
Assistant Vice President
