Here's a story that will put you in the Christmas mood.One of the largeest European banks, Credit Suisse, will pay its employees bonuses not in cash but in "illiquid" loans and bonds - including mortgage backed securities that have been blamed for the financial crisis: The bank will use leveraged loans and commercial mortgage- backed debt, some of the securities blamed for generating the worst financial crisis since the Great Depression, to fund executive compensation packages, people familiar with the matter said. The new policy applies only to managing directors and directors, the two most senior ranks at the Zurich-based company, according to a memo sent to employees today. “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,” Chief Executive Officer Brady Dougan and Paul Calello, CEO of...(Read Full Post)