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Credit Suisse has set the model for Wall Street bonus plans

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Really. Let the people who created the problem work themselves out of it, if they want a bonus. What those who somehow support the bonus plans forget (or choose to ignore) is that Wall Street paid out billions in bonus money the last few years when they sold these almost worthless pieces of paper. Outside of UBS, I haven't heard of anyone paying back any of that money despite billions being taken off of the books. The bonus money paid out was more than enough to allow Wall Street to take a year or two off of the bonus plans, especially since they're now spending taxpayer money.

Credit Suisse deserves a lot of credit for this plan but let's not ask others to follow because then Wall Street might get mad and then stop forking over campaign contributions to Congress, Democrats included.

Credit Suisse Group will pay senior executive bonuses with troublesome, illiquid assets, forcing employees to take on the risk that at least some of them put on the Swiss bank's books.

The new plan will cut the bank's risk exposure by linking most of its top executives' bonus payouts to some $5 billion in illiquid and often opaque assets, which have tumbled in value amid the credit crisis.

The plan comes amid fierce criticism that bonus systems were rewarding bankers for taking on irresponsible risks.

"While the solution we have come up with may not be ideal for everyone, we believe it strikes the appropriate balance among the interests of our employees, shareholders and regulators and helps position us well for 2009," a memo from CEO Brady Dougan and investment bank boss Paul Calello said.

Credit Suisse appears to be the first to use tarnished assets to pay employees, linking their rewards to the performance of risky assets.

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