Bonus Panic at Credit Suisse

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Employees of Swiss banking giant Credit Suisse are worried their bonuses might be affected by outsized losses the firm has suffered. A source within the bank confirmed to DealBreaker that gossip mongers within the firm are saying that losses from derivatives trading may be twice as high as the $120 million previously reported by Bloomberg. (The source denied, however, that the losses amount to $900 million, as suggested by a DealBreaker commenter).
The rumors have some bankers concerned that their year-end bonuses will be affected by the losses, the source said. Typically, bonus packages at investment banks are based, at least in part, on the overall performance of the institution. Large losses can reduce the money distributed to bankers at the end of the year.
Of course, all of this is unconfirmed. Credit Suisse could not immediately be reached for comment. But we eagerly await its response.

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