Monday, 22 September 2014
Last updated 2 days ago
Aug 3 2009 | 2:01pm ET
The head of Citigroup’s hugely profitable proprietary commodity-trading desk, his $100 million bonus in doubt, wants out.
Andrew Hall, the head of Phibro, is pushing for “a quiet divorce” from Citigroup, The New York Times reports. Hall is reportedly worried about becoming the poster-boy for irresponsible bonus-giving on Wall Street. The $100 million bonus is guaranteed in Hall’s contract with Citi.
What’s more, Hall has already had talks with another possible employer, despite the fact that Citigroup, which needed tens of billions in government bailout money to stay afloat, is confident that the U.S. Treasury Dept.’s pay czar will approve Hall’s massive payout.
“We’re confident in the value these types of profit-sharing arrangements bring to the company and its shareholders, as they directly align compensation with performance,” James Forese, co-head of global markets at Citi, told the Times. Phibro has netted the firm some $2 billion over the past five years.
The Times report is not the first of trouble in the Citi-Phibro relationship. In April, it emerged that the firm was considering a spin-off of Phibro as an independent hedge fund or opening it up to outside investors.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.