Citigroup has reached an agreement to sell Phibro, the highly profitable Connecticut-based commodities unit helmed by dashing, art-collecting, Schnabel-owning Andrew Hall, to oil and gas producer Occidental Petroleum. Does this solve Citigroup’s problems? No! Yes, they’re getting some cash (Unclear how much: Occidental and Citigroup said the sale price is about “net asset value,” which wasn’t disclosed.) but they’re losing a star trader and their most profitable unit. Well: Does it even relieve them of the horrible optics presented by the fact that they are contractually obligated to hand Hall a $100 million bonus in a year in which they’ve accepted $45 billion in aid from the federal government? No! Per the Times: “There is little dispute that Mr. Hall is owed the nine-figure bonus under the terms of his contract.”
Oil Producer to Buy Citi’s Phibro Unit [DealBook/Times]
Occidental to Buy Phibro From Citi [WSJ]
