Citigroup (C) is considering paying a $100 million bonus — to one guy.

This
is the same Citigroup that received $45 billion in bailout money. The
same Citigroup that will soon be 34% owned by the U.S. government. The
same Citigroup that has lost 95% of its share value since 2007.

Citigroup
is in no position to be awarding bonuses of $10 million — let alone
adding another zero to that amount. So why is it mulling such a
colossally dumb move? Because the guy demanding it is probably the
banks most valuable employee.

Enter Andrew Hall. Hes a rock
star, a legend among banking circles. He makes a boatload of money for
Citigroup as head of Phibro, the banks energy-trading unit. The Wall Street Journal calls Phibro
a secretive operation, housed in a former Connecticut dairy farm, that
"occasionally accounts for a disproportionate chunk of Citigroup
income."

Phibro made so much money for Citigroup last year that
Hall got a $100 million bonus (His bonus is based on Phibros profits).
Phibro was the main
source of the $667 million in pretax revenue Citigroup received in
commodities trading, the Journal reported. And the unit is doing so
well this year that Hall may be in line for a similar amount.

Even
though its only July, it sounds like Hall is pressing Citigroup for
confirmation of the bonus. Hes threatening to leave the company,
reports say.

So heres Citigroups dilemma: Keeping Hall would
likely help the company climb out of the hole its in. But can it
afford to spend $100 million?

And will the U.S. government allow
it? That will depend largely on the opinion of Kenneth Feinberg, the
new pay czar appointed to oversee compensation at the bailed-out banks.

Hall already has so much money that he owns a castle in Germany called Schloss Derneburg (pictured here). Hes a huge art collector, and caused a bit of a ruckus in Southport, Conn., by commissioning a six-ton, 80-foot-long sculpture of concrete and steel on his front lawn. That doesn’t play well with Southporters.

And how will a $100 million bonus play with taxpayers? We’ll see.