Description:Â At the depths of the financial crisis, senior bankers at Credit Suisse Group (CS) received $5.05 billion of junk-grade loans and commercial-mortgage-backed bonds as part of their annual bonuses. Those assets, considered long-shot investments when they were transferred to an internal employee fund in late 2008, offered the Swiss investment bank a way to shift risk off its booksâ€”while giving the employees a chance to benefit from any recovery in that market.
Questions for discussion:
- Explain the strategy employed and how everyone seems to be benefiting from it.
- Is everyone benefiting fairly from this strategy and is it unethical, in your opinion?