Investment banks and Government to spur over mega million dollar pay packages – Citi Group faces legal challenge
Marla Guthrie
Jul. 26, 2009

What can you do when a trader makes big profit and contractually you are obligated to pay him or her the fair share of the profit? What d you do when you have agreed to Government regulations and received bailout money that prohibits you from paying such outrageous mega millions to anyone?

Investment banks and Government are eying each other, as the spur over mega million dollar pay packages is about to start. Citi Group faces legal challenge on one side and Government’s new pay czar.

A top Citigroup Inc. trader, Andrew J. Hall, heads Citigroup's energy-trading unit, Phibro LLC. He runs a highly successful secretive trading operation, run from the site of a former Connecticut dairy farm. Citi Group made enormous amount of money from Mr. Hall’s operation. They owe him a big thanks and a check that is worth more than $100 million. But the Government’s new pay czar is not allowing that to happen.

Citi Group is just an example. Many financial entities face the same problems. The spurring with Government is not easy. But the alternative is a messy leagl showdown. On top of that efficient traders will leave these financial giants and work for their own creating the second shocker for the investment banks.

Investment banks and Government to spur over mega million dollar pay packages – Citi Group faces legal challenge
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Investment banks and Government are eying each other, as the spur over mega million dollar pay packages is about to start. Citi Group faces legal challenge on one side and Government’s new pay czar.
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