The chairman of the House Financial Services Committee, frustrated by Citigroup's ( C - Get Report) unwillingness to turn over information about any WorldCom executives who may have gotten shares in initial public offerings, will try to pry the information out with a subpoena. Rep. Michael Oxley (R., Ohio) said Friday that a subpoena is necessary because Citigroup provided insufficient information about what, if any, special treatment its Salmon Smith Barney investing banking division may have given WorldCom executives. Salomon had been one of the now-bankrupt telecom's principal investment bankers. The issue of whether Salomon may have doled out shares in some bull-market IPOs to WorldCom executives came up during a committee hearing last month into the accounting fraud at the big long-distance carrier. Citigroup maintains it would be an invasion of federal privacy law for it to provide that information without a subpoena. Citigroup spokeswoman Leah Johnson said, "We will continue to cooperate with the committee."
committee's Web site. Citigroup says Grubman's lucrative pay package stems from an attempt by Goldman Sachs ( GS) to steal him away in 1998. To keep Grubman, Citigroup entered into a five-year deal with the analyst that runs through December 2003 and includes a minimum salary, specified bonuses, stock options and a "loan that will be forgiven should Mr. Grubman fulfill the terms of his agreement." The letter doesn't provide any dollar amount for the loan. The bank also says it's not "aware of any circumstance" in which Grubman promised a company favorable stock research in exchange for hiring Salomon as its investment banker.