Credit Suisse deals a cold dish to its sub-prime division...

[Police State]

Who said the Swiss are unimaginative... I hope the idea catches on elsewhere and they all have to eat limp toxic salad for some time...



ZURICH, Switzerland (AP) — Credit Suisse Group said Thursday it is changing its bonus system to transfer $5 billion in questionable assets to top managers.


http://www.google.com/hostednews/ap/article/ALeqM5...

[sjn2004]

Police State said:

Who said the Swiss are unimaginative... I hope the idea catches on elsewhere and they all have to eat limp toxic salad for some time...



ZURICH, Switzerland (AP) — Credit Suisse Group said Thursday it is changing its bonus system to transfer $5 billion in questionable assets to top managers.


http://www.google.com/hostednews/ap/article/ALeqM5...

I can't work out how they can pay themselves bonuses of $5 billion yet make a loss of $2.5 billion in the quarter and fire 5300 staff? I thought you had to be in profit to get a bonus?

[Police State]

sjn2004 said:

Police State said:

Who said the Swiss are unimaginative... I hope the idea catches on elsewhere and they all have to eat limp toxic salad for some time...



ZURICH, Switzerland (AP) — Credit Suisse Group said Thursday it is changing its bonus system to transfer $5 billion in questionable assets to top managers.


http://www.google.com/hostednews/ap/article/ALeqM5...

I can't work out how they can pay themselves bonuses of $5 billion yet make a loss of $2.5 billion in the quarter and fire 5300 staff? I thought you had to be in profit to get a bonus?

It's a neat way of writing down/getting rid of 'toxic investements', and... The people receiving the bonuses may be able to sell the assets if the market values go up, but they also could go down, Credit Suisse said.

[fid]

They're saying these people are responsible for the questionable assets being bought, so they can bloomin well have them instead of a cash bonus. Nice way of reducing risk.