Credit Suisse Bankers Said to Bet on Firm’s Illiquid Assets
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Credit Suisse Group AG, selling riskier assets to free up capital, has found a ready buyer: its own employees.
The same senior bankers who received part of their 2008 pay in illiquid loans and bonds contributed $450 million of their own money to buy more of the firm’s risky assets, such as mortgage-backed securities, said two people with knowledge of the plan, who asked for anonymity because the deal is private. The bankers, some of whom have left since 2008, had been willing to put almost $500 million into the Expanded Partner Asset Facility, or EPAF, which closed Dec. 31, one of the people said.