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.
The bank will use leveraged loans and commercial mortgage- backed debt, some of the securities blamed for generating the worst financial crisis since the Great Depression, to fund executive compensation packages, people familiar with the matter said.
These are the same individuals that signed off on the deals, and gave all the pitches about how it "isn't that bad," etc. Plus, any decent compensation plan has all sorts of deferrals and "golden handcuffs" -- so where better to dump some illiquid assets?
The creativity of capitalism never ceases to amaze.
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