How About a $100 Million Gas Refund, Andrew J. Hall?

You may have read about Andrew J. Hall, the Citigroup commodities trader who is owed a $100 million bonus in 2009. Outrageous, you might be thinking that Citigroup, who was the beneficiary of a $45 billion taxpayer bailout, would consider paying such a large bonus to one individual in light of recent scrutiny. The problem is that they legally owe him the money, regardless of public perception. So Citigroup is currently at risk of angry mob backlashby paying the bonus, or getting sued by and losing an employee who has earned the company roughly $2 billion in profits over the past several years. And so is the dilemma of mixing public and private funds. Whose company is this now anyway?

It will be interesting to see how this plays out. On the surface, I would say, "pay him". He has earned it. But my real issue is how he earned the bonus. Oil speculation. Mr. Hall and his cohorts were directly responsible for the outrageous spike in oil prices in 2008. And based on that fact alone, I say we tell Mr. Hall to go pound sand.

I have nothing against free markets or risk takers who outsmart the rest of the investment world. But I take issue with the fact that his large gambles adversely affected the pocketbooks of average citizens just trying to scrape up enough cash to fill the tanks of their '99 Toyota Corrollas. It's one thing to take from another investor who chose poorly. It's quite another to take from people who are not in the game.

The cost of oil had a ripple effect, causing food prices to spike and forced people to choose between heating their homes in the winter or eating. To hell with you and your bonus Mr. Hall. And take the rest of your ilk with you. You own a 150-room medieval castle in Germany, a 7500 square foot house in Connecticut and an art collection worth more than Arkansas' public education budget. Do you really need the $100 million? Is it worth your reputation?

Sure, it's likely that he'll land at Goldman Sachs or J.P. Morgan if they refuse to pay him, but this sort of commidity speculation will probably be under considerable regulation in the coming years, curbing his ability to turn profit.

So Mr. Hall, if you want to save face and receive the money owed to you contractually, how about donating your bonus to the families who lost their jobs during the energy crisis in 2008? Or maybe send one dollar back to each of the 100 million households in the U.S. It may seem trivial considering the addtional hundreds and thousands of dollars that middle class families paid for energy and food last year. But at least you might be able to sleep at night knowing that you're not a total butthead.