Credit Suisse to Use $5 Billion of Illiquid Assets for Bonuses

This is not even a joke:
Dec. 18 (Bloomberg) -- Credit Suisse Group AG's investment bank has found a new way to reduce the risk of losses from about $5 billion of its most illiquid loans and bonds: using them to pay employees' year-end bonuses.
Conclusions (?):
  • A bank that has lost countless billions of USD will still pay bonuses to employees. And not a little bonus, according to their accountants, managing directors and directors will share a slice of these $5 billion package?
  • Nobody wants to buy those assets, which makes them virtually valueless, otherwise they wouldn't be giving them away. So the only way of removing them from the balance sheet is to give them away?
  • If they are worthless, maybe they are not really paying bonus then, and just fooling their employees?

1 comment:

dojski said...

Ah, things are so different now. Anything goes in the financial world.