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Bankers Getting Toxic Assets For Bonuses
from the two-birds,-one-stone dept
The various banks on Wall Street have a bunch of problems that they're dealing with right now, including getting rid of toxic assets on their balance sheet, properly compensating staff who are expecting big bonuses even in such a down year and figuring out ways to motivate staff to invest in good assets, even in such tough times. It appears that Credit Suisse Group may have come up with a creative solution to all of those things. Instead of cash bonuses this year, it's going to give employees some of those toxic assets it holds. This is incredibly creative for a variety of reasons. It starts to get some of those assets off the balance sheet. It gives them to employees who want bonuses, and it gives those employees quite the incentive to make sure those assets are actually worth something. Of course, since many of those employees recognize that the assets aren't worth much at all, many of them are pissed off, but it's pretty difficult to come up with any reason at all that they deserve any sort of bonus, so they're probably a lot better off accepting what they're given and seeing if they can actually make it worth something.
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Also, what is Joe Blow going to do with these? If 'he' owns the security, then he doesn't have much facility to help somebody refinance their crappy loan - he doesn't have access to hundreds of thousands (minimum) in capital, so if the thing is going bad, what can he do about it?
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Fantastic Idea
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Re: Not for the folks down in the computer room or the facilities peeps
When do you think the last time people in the IT, or facilities were actually able to "demand" bonuses? I've worked "in the computer room" for many years. The only times that we saw bonuses was when management wanted to bait the hook in some way. Almost never were bonuses back-to-back years, and never did they reflect what management saw.
One year that there "wasn't enough margin for bonuses" I actually dug up the company propaganda that showed six months earlier the upper management all cheering because they had just closed the "best year ever," and were all looking to receive huge bonuses. Kinda puts things in perspective.
Generally speaking, people that work in "revenue spending departments" will never be able to "demand bonuses." The people that do "demand bonuses" actually have a lot more control over, and flexibility to use, and make profitable toxic assets. Thus reiterated by the article that mentions only "managing directors and directors" will be receiving the "toxic bonuses" (and probably the only ones receiving bonuses in general).
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It does not matter how hard Joe Blow works. I repeat, IT DOES NOT MATTER.
This is all about leaving your dirty filthy stinking laundry with the people who had the least to do with soiling it.
Fucking disgusting.
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Terrible Idea
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Re: Re: Not for the folks down in the computer room or the facilities peeps
Yes, I'm a troll, but I'm an anonymous troll.
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Bone Us
to wit - You made your bed, now sleep in it.
btw, Did that Merril Lynch dude get his 10 mil bonus he was whining about ? Haven't seen followup in the news about that.
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Re: Terrible Idea
Say they get given a property in a decent neighborhood. It doesn't cost them anything to acquire it.
They can then undervalue the property and sell it to someone who can't currently afford a home based on current home values.
They get cash,someone gets a home mortgage free.
I don't see this as a bad thing.
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Re: Re: Terrible Idea
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Re: Re: Re: Not for the folks down in the computer room or the facilities peeps
Poor Anon Cow, they are being a hipster.
But you wouldn't understand if you:
1. Teach Sunday School.
2. Are a big fan of the suburbs and vinyl siding.
3. Have a special "spill shirt" that you wear when you eat dinner at night.
4. Read novels with raised lettering on their covers.
5. Eat at Popeye's on a regular basis.
6. You work in an office building that has a man-made pond or fountain in its front lot.
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Re: Re: Re: Re: Not for the folks down in the computer room or the facilities peeps
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"So Johnny, I see you approved this steaming pile of crap. Well, here you go, pehaps you can get it going in a nice bio-digester. Merry Cruxmas! Ho ho ha ha!"
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Re: Re: Re: Re: Not for the folks down in the computer room or the facilities peeps
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