Wednesday, September 2, 2009

Contracts at Citigroup

"In your editorial 'The $100 Million Banker' (Aug. 5), you say 'a contract is a contract, and if Mr. Hall is owed $100 milliion then Citigroup ought to pay it.' Not so fast! If Citigroup were in bankruptcy court where it ought to be, Mr. Hall's contract could have been voided, leaving him to stand in line with Citigroup's other hapless creditors", Edward Kalaidjian letter to the WSJ, 11 August 2009, link: http://online.wsj.com/article/SB10001424052970204908604574332731443282324.html.

My sentiments precisely. This is a job not for Superman, but our new SDNY US attorney who should tell Andrew Hall (AH), however delicately, "You have no contract". Of course, if AH is so stupid as to try to enforce his "contract", Preet Bharara (PB) can "go Beria" on AH. I'm sure with all the SDNY talent, it can find something to nail AH with. Alternatively PB can take AH to the CNC guillotine room and remind AH this encounter sounds like a "Marie Antoinette" moment.

1 comment:

Anonymous said...

Citi wants to keep a line on the trading revs so I'm sure that Vikram wants to pay Hall and keep control of the trading desk.

If he pays Hall the $100 million this will blow up and make a big stinky mess.

Sure Attorney Bharara put Hall's feet in the fire. The FDIC could use a little help reining in that insolvent behemoth.