Andrew J. Hall wants a separation. Not a “divorce” as was erroneously reported in Dealbook. He wants to “separate” his trading outfit Phibro from the “troubled conglomerate” Citigroup according to the Daily Telegraph but he wants equitable distribution while he’s at it and I can’t says I blame him. Oh, and he wants a gag order too. He doesn’t want the press in his shizzo. Mr Hall reportedly said in an email: “I have no desire to assist in prolonging this media attention.”
Citigroup owes Hall $100 million bonus (this was stipulated in the prenup) and I guess that will be his unofficial “divorce settlement” if the two part ways and Citigroup upholds its end of the deal (no, well, not divorce settlement; more like stipulation of separation or separation agreement).
The thing is now that the marriage is on the rocks, the White house is trying to weigh in on this prenup and chastise Phibro/Hall for their lavish “marital” lifestyle. That’s like the judge trying to re-write somebody’s prenup, isn’t it? Says the Telegraph:
The news comes after more than 10 days of controversy surrounding the size of Mr Hall’s bonus, given Citigroup is now 34pc-owned by the US Treasury. The controversy was in part inflamed by news reports of the Oxford-educated trader’s allegedly lavish lifestyle, which includes a penchant for modern art.
The White House last week went so far as to call Mr Hall’s potential pay-day “out of whack” in light of Citigroup’s financial position – the US Treasury also owns $20bn of Citigroup preferred shares and has put a $306bn loan-loss guarantee in place.
Well, whatever. Hall obviously thought he was countess Marie Douglas David. But so what? Phibro is already moving on and eyeing other women/suitors like…well, no specifics have been given but a bunch of hedge funds and other companies (potential girlfriends) are already checking out the commodities hottie. So Hall doesn’t care. He knows he’ll be just fine post divorce.
As far as ancillary issues: Citigroup is trying to act like they are the mature ones and have reportedly expressed concern about the “best interests of the children” one official telling the Telegraph: ” we are evaluating the best way forward for our stakeholders.” They are also defending their behavior during the “marriage” explaining that:
Citigroup said that Phibro operates under a pay-for-performance contract, with compensation decided at the year end. “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 and include appropriate clawback and risk-sharing provisions,” the bank continued.
This is typical in marriages. It’s about value, performance and compensation when the union busts up. So I don’t frankly know what the White House is talking about….actually, I don’t know what I’mtalking about! So I am going to just shut up now and get to work. I’m working on a foreclosure today and I have to meet my client by noon.
au revoir, mon ami. A bientot!