How risky schemes left bankers flush, banks broke
(NEWSER) - Dow Kim was one of the leading bond traders at Merrill Lynch, and in 2006 he bundled together $500 million in loans into a huge CDO with the charming name Costa Bella. Since the subprime collapse, Costa Bella has cost Merrill millions—but Kim had already cashed out, awarded a bonus of $35 million, or 100 times his salary. It's only one example, writes the New York Times, of how bonus culture drove traders to take big risks for short-term profits at the expense of long-term stability. More»
