Citigroup may solve its $100 million trader problem

Citigroup (NYSE:C) is concerned that the government will pressure it to reduce or eliminate a $100 million bonus that it apparently owes the head of its Phibro energy trading unit. The bank fears that the federal government's "pay czar" will try to make it cancel the compensation agreement.

Andrew J. Hall, the head of Phibro, has an agreement with Citi to share the unit's profits. His contract could cause the bank legal headaches. That leaves Citi's management with very few ways out of a messy situation.