mark rich worked at fibro. >> i remember. i'm not kidding. >> here's a semiautonomous sort of -- >> when gold was at the all-time high, they overpaid. but i hate to interrupt you. >> this semiautonomous company that existed inside solomon. it existed in there. it existed as part of citigroup. and it made money. then all of a sudden -- you know, when they decided to implode the citigroup model, he was -- he's getting rid of smith barney and all of this stuff. he overlooks fibro. and look what happens. these guys make a lot of money. now we can't overlook it anymore because this mr. hall who runs it, andrew hall, makes $100 million and they're a t.a.r.p. bank. now he basically -- he has to get rid of it in some way. >> well, good for andy hall. i know andy hall from the '80s. the guy made $700 million. citibank should be kissing his fanny, frankly. $100 million is fair. he's going to get paid 100 million bucks. >> 50 of those guys. >> well, they screwed it up. this is a pr nightmare because they let it be. >> you can make 600 -

the fact is while they don't specifically disclose it, according to report on fibro, it's made a lot of money the last two years, way over $1 billion. this kind of compensation structure is not atypical for a hedge fund manager, other people. all of a sudden, we are saying, well, now because it is a bank, we don't want to take on this risk. i guess with he would lake to go back to pleasantville. go back to '50s and '60s, banks took deposits, made mortgage loans and that's it globally, that wouldn't work. >> wouldn't be the business if the government wasn't involved, right? >> i don't think it is our business anyway. i think as a taxpayer, in terms of governmental interest, this contract has paid off handsomely. we want the bank to be successful. why are we complaining about somebody's ultimate pay for performance situation in the number is too big, what we are saying. >> jay what do you think about that? >> well, you know, when you talk about, you know, the amount of money that, for example, andrew hall has earned for citigroup, you know, we earned a whole lot of money taking on high

the notoriously reclusive hall a rainmaker sit itty's fibro division and reportedly wants his money a citi spokesperson would not comment on a report over the weekend that the bank wants to exempt hall's contract for review by the white house payczar, kenneth fineberg, on the grounds it was signed before the cutoff for review. fineberg said over the weekend he has not decided what to do but reportedly noted he does have the authority to claw back compensation, even on contracts signed before the cutoff date. where does that leave citi and andrew hall? citi will only say it has provided treasury with all inform it is is required to and that includes information on hall's compensation there are reports that the bank could find a way to restructure his payment into stock but what is sounds less likely among the scenarios out there, citi spins off fibro which has been a tremendously profitable business for them as well as for andrew hall. $100 million pay packsages don't look good these days. >> scary when fineberg says he has the clawback provision he could exercise as well. thanks, scot

hall has from citigroup fibro, the energy company, he got paid on performance basis, why are we vilifying him? in a sense, i neglected to mention the oprah factor, let's not forget oprah winfrey has a $275 million contract. i say, fine, fine oprah. i say fine, eli manning, fine to anybody who earns the wealth, the market rewards them, i want everyone to get rich and wealthy. why are we still vilifying goldman sachs and andrew hall, neil hennessey. >> the new economy to them is you print money, don't earn it. that seems to be the problem. go back to last fall, the congress was all over oil companies because speculators ran it to $147 a barrel. same thing happening today. this gittesing crazetting crazy. you would think they would be happy the banks are getting solid footing and making loans. if you don't make money, you can't make loans. i don't see the problem except they're getting ready for 2010 election this is wrong because we're trying to steer the future new york times city america for the next election. >> i want to repeat i am happy ely is getting a great contract and happy oprah

other options include winding down the business, but that idea could back fire since fibro is very profitable. the times says citi tried to sell the unit berkshire hathaway, but talks went nowhere. citi shares are up about 4%. ross. >> and investors with royal bank of scotland today investors shared a cautious outlook in the and posted a loss in the fist half of the year. the bank has warned the results will be poor for the next two years, as well. in a move to overhaul its top management team, rbs approved the appointment of bruce vansohn. come up within we'll have an interview with the ceo of rshs, stephen hester. stay tuned for that. shares in allianz are low today, as well. net profit was up 22%. operating profit hit by lower income on investments and underwriting. allianz delivered a cautious outlook. we'll get more on that when we speak to the ceo, dr. helmut perlet. >>> coming up, the central bank says it's ready to hike interest rates if needed. what other economies could follow suit? >> we'll talk about that and take a look at the kwurntsy markets on the employment report. snoor >>>

i explained the whole thing to my 9-year-old, the fibro thing and i went through the taxpayers versushis -- he goes, of course we have to pay them. >> the contract? >> won't we lose more money if we don't? >> right. >> the taxpayers. so a 9-year-old gets it -- >> we are now in a position of holding a major chunk of citigroup as taxpayers. >> pay the guys $100 million so they can give $2 million profit to the bank. if i 9-year-old gets it i wonder who is the pay czar over at the obama administration gets it. >> if you want to, you could connect the dot from the middle class and what they had to pay for $4 gas going right into this guy who made $100 million last year, too. it was -- >> do you know he made it on the long side? >> to. i don't know -- >> you don't know where -- >> he should have made it on both sides. it doesn't matter. >> this is a guy who doesn't want to be in it. he's probably going to leave anyway, right? mr. hall, he'll be in -- >> who knows. he may be -- i don't know. >> you could argue, joe, in their purest form the traders and hedge fund operators make sure we pay

. >> well, he works for fibro, which is a unit of citigroup based up in connecticut.uestion. they are trying to wrap me, and it is going up or down, and you are always good at the predictions? >> well, i gave that up in the fall. but the only main economic headline we got was consumer prices, and came in utterly flat as expected, and if you want to round it, just to make sure you believe it was flat, it was 0 .0 00%. >> that is flat. >> the glasses are looking good, joe. >> thank you so much, erin. we will see you on monday. coming up next, pensacola, florida, it's marking its 450th anniversary. that's right, 450 years. we will talk to the person that has the evidence of what went wrong and why the town let me in when we return. bicycle, i've missed you. gathering dust, as ollen floats through the air. but with the strength of zyrtec ® , the fastest, 24-hour allergy relief, i promise not to wait as long to go for our ride. with zyrtec ® i can love the air ™ . how far can you see? at pnc, taking the long view is how we help you take the right path. even to change it wh