Citigroup's Sale of Phibro: Ending the US$ 100 Million Pay Controversy |
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"Banks are the backbone of any financial system. I don't think they have any real business in doing a lot of speculative trading."1 - Paul Volcker, former Federal Reserve Chairman and Head of US President Barack Obama's Economic Recovery Advisory Board, in October 2009. "We didn't just solve Obama's problem. We had to think of the risks that the company would be under from an irritated administration or pay master."2 - A Citigroup Executive, in October 2009.
Citigroup reportedly decided to sell the unit to avoid a potential conflict with the US government over a US$ 100 million payout to Phibro's star trader and CEO, Andrew J. Hall (Hall). Citigroup's Sale of Phibro: Ending the US$ 100 Million Pay Controversy - Next Page>>
1] Bradley Keoun, "Citigroup Sells Phibro Unit to
Occidental Petroleum," www.bloomberg.com, October 9, 2009. |
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