- This topic is empty.
-
Posts
-
Bankers’ ‘junk’ bonuses turn into $5bn
Bonuses made up of so-called toxic debt and given to bankers at Credit Suisse as a punishment for poor investments, have soared in value.
Their bonus pool, made up financial products originally thought to be worthless, is now worth $5bn (£3.2bn).
The bank lost $7bn last year, in part due to the investment decisions of some of its best-paid staff.
The toxic debt bonuses had been described as a way of giving the bankers to taste of their own medicine.
But it has now emerged the value of the toxic bonus pool has climbed by 72% – far outperforming many safer investments.
Well-deserved?
The money had been put into complicated financial products linked to the risky commercial debt secured on among other things, a Japanese shopping centre, an American supermarket chain and other commercial property that had plunged in value.
read more at bbc.co.uk
- You must be logged in to reply to this topic.