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To: ChanceIs who wrote (172312)	12/18/2008 12:41:07 PM
From: Aggie	Read Replies (1) \| Respond to of 306849

Hi Chancels, Re: Credit Suisse using illiquid assets. Here's what I think: They have had the wisdom to make lemonade, and I wish it would be put in place on Wall St. You want a bonus? Here, have a couple of defaulted mortgages....whatever you can collect, it's yours. Aggie

To: ChanceIs who wrote (172312)	12/18/2008 2:32:30 PM
From: Tommaso	Respond to of 306849

That's like giving the garbage collector a share of what he collects-- as his pay.

To: ChanceIs who wrote (172312)	12/18/2008 5:52:03 PM
From: $Mogul	Respond to of 306849

Hilarious. Thanks for posting that. "ZURICH -- Credit Suisse Group said Thursday it will use its own illiquid assets such as mortgage-securities to pay senior staff at its investment bank year-end bonuses. The Zurich-based bank plans to pool its illiquid assets such as commercial mortgage-backed securities and leveraged loans it cannot sell because demand has seized up, then dole out portions of the entity to managing directors and directors".

To: ChanceIs who wrote (172312)	12/18/2008 11:53:41 PM
From: ChanceIs	Respond to of 306849

Credit Suisse Gives Bankers Unusual Plan for Bonuses >>>Lots of wailing and gnashing of teeth at CS with this news, I didn't lose a penny.....it was the idiot over in the corner. I want my bonus in cash. Tsk. Tsk. Tsk. Maybe they will strengthen internal controls a little. Good move on managements part.<<< By HEIDI N. MOORE Some Credit Suisse Group bankers were left reeling after the bank said it would pay a substantial percentage of their 2008 compensation with an illiquid group of junk bonds, mortgage-backed securities and corporate loans. The move Thursday represents a radical revamp for the Swiss bank, which posted as much as $4.6 billion in losses so far this year, a number that could increase when it announces full-year earnings. For years bankers had received about half their compensation in cash, and the rest in stock. This year, up to 80% of the stock portion will come via what Credit Suisse is calling a "Partner Asset Facility," of the illiquid assets, largely corporate loans. The bank categorizes 90% of the assets as "performing," which means Credit Suisse believes the loans will pay out over time. Bankers won't receive a return on the PAF program for eight years, although they can start to collect some of the principal in 2013. If the firm finds outside buyers for the assets, it will pay the proceeds to itself first, then provide the rest to employees. The PAF applies only to senior bankers within the firm's investment bank, which includes merger advisory, capital markets and leveraged finance. Those in Credit Suisse's private bank and asset-management division aren't subject to the PAF. The announcement elicited livid reactions from senior bankers, many of whom questioned whether it was legal. Many said they believed they were being unfairly punished for risky assets bought by colleagues in distant parts of the firm. And while the securities may prove lucrative over time, many bankers are already stretched for cash. "I did not lose one penny for this firm this year," said one senior banker who advises on mergers and acquisitions. "I guess I had a hard time vacillating between which was more offensive: that cash is no longer cash or that equity is no longer equity." Credit Suisse told employees the move was necessary to help the bank reduce its pile of risky assets. It also wanted to show shareholders and regulators that the bank is taking the credit crisis seriously, and to provide at least some compensation in lieu of otherwise meager payouts. Gary Goldstein, founder of Wall Street recruiting firm Whitney Group, applauded the move and said it could turn out to be a smart investment. "Take the emotion out of it, step back and assume there are pretty smart people putting this together," Mr. Goldstein said he advised bankers. "Everyone thinks cash is king, but firms don't have cash right now."