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Leveraging the leveraged leverages. - Portrait of a Young Man as The Artist — LiveJournal
abmann
abmann
Leveraging the leveraged leverages.
HA! Credit Suisse devised a fantastic way to offload their dead mortgage debt - Executive Bonuses

The assets go into a pool from which the "bonuses" come. If the debt pool value increases, everyone earns that value increase. Otherwise, any decreases in value first remove value from the bonus before the company takes the hit. Further leveraging the debt is kind of scary but it buffers the company for a little while.

Brilliant! Lunatic!
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world_rim_walke From: world_rim_walke Date: December 22nd, 2008 03:37 pm (UTC) (Link)
Wait... does this mean that, if the company is loosing money from the bad mortgages, it comes out of the executive's bonuses and not the company's general fund?
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