Description: 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 books—while giving the employees a chance to benefit from any recovery in that market.
Source: Businessweek.com
Date: 01/26/2012
Link:Â http://www.businessweek.com/magazine/at-credit-suisse-toxic-bonuses-turn-into-gold-01262012.html
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?
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