Salomon Smith Barney Inc. was involved in one of the year's biggest corporate lending blunders this month-the failed syndication of a $2.25 billion loan for Meditrust Corp.

Meditrust, a health-care real estate investment trust, fired Salomon as lead arranger of the high-profile loan. The move was not only an embarrassment for Salomon but also fueled speculation that its lending unit would not survive the pending merger of its parent, Travelers Group, with Citicorp.

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