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Credit Suisse to Swap 2011 Bonus Plan for New Awards, Memo Says

Credit Suisse Group AG, the second-biggest Swiss bank, told staff they need to swap 2011 bonuses tied to derivative counterparty risks for new awards because of regulatory changes.

“Your PAF2 award was linked to a portfolio of the bank’s credit exposures, and provided risk offset and capital relief to the bank,” Credit Suisse said in a memo last week, referring to the Partner Asset Facility 2 awards. “Due to regulatory changes, this capital relief is no longer available.” An official for Zurich-based Credit Suisse confirmed the memo’s contents.