Citigroup wants to pay bonuses. Waiting for Geithner's decision

According to the Wall Street Journal Tuesday online report, U.S. Treasury was requested by Citigroup Inc. to give permission to pay special bonuses. Citigroup is seeking for the ways to free an energy-trading unit from government limitations.

Earlier this month Citigroup CEO asked Timothy Geithner to be allowed to pay stock-based bonuses, described as retention ones, to its employees. However, Treasury Secretary hasn’t given the definite answer yet.

Citigroup is now thinking over several options concerning any bonuses structuring. One of the options supposes the bonus would be largely stock that vests over some three years and be worth at least half the employee's cumulative pay over the last three years, the Journal says.

The other options seen by the bank are spinning off Phibro into an independent hedge fund or bringing in outside investors, as Citigroup intends to deal with people threatened by pay restrictions, who are to leave Phibro, its energy-trading unit.