Bloomberg reports the investment bank Credit Suisse Group AG has set its end-of-year bonuses in a particularly innovative (and worthwhile) fashion. It is giving its employees some of the firm's illiquid mortgage-backed securities. This is "sheer genius," according to Megan McArdle: "If the things really are any good, they make money; if not, they take a bath along with the rest of us." Furthermore, this plan will reduce the volumne of such securities on the books at Credit Suisse. I'd like to see other banks and investment houses follow suit.
A Welcome Bonus: