Bear Stearns to cut 310 mortgage jobs
|
|
|
NEW YORK (Reuters) - Bear Stearns Cos said on Wednesday it was cutting 310 jobs in its mortgage lending business, making the Wall Street bank the latest to lay off staff as a result of the lingering subprime mortgage crisis.So far this year, Bear Stearns has cut its mortgage origination staff by about 40 percent, the company said.The latest round of layoffs, part of a reorganization of its home lending business, are being made to "increase efficiency" and to scale its operations to current market conditions, said Bear Stearns.U.S. banks and financial service companies with home lending units have cut tens of thousands of jobs so far this year, with some citing tightening credit conditions, or the need to cut costs after a steep drop in mortgage lending.On Tuesday, Morgan Stanley said it will slash 600 jobs as part of a restructuring of its residential mortgage business, about a quarter of its home loan work force.Lehman Brothers Holdings Inc said last month it would cut 850 jobs in the United States and UK, on top 1,200 jobs cut when it shut down subprime unit BNC Mortgage Corp.Bear Stearns said on Wednesday it will combine its mortgage lending businesses -- Bear Stearns Residential Mortgage and Encore Credit -- into one unit, to be named Bear Stearns Residential Mortgage Corp.Two months ago Bear Stearns cut 100 jobs at Encore Credit, a subprime lender acquired last October for about $26 million. Another 140 jobs were eliminated in August at Bear Stearns Residential, which funds risky subprime mortgages and Alt-A loans for borrowers with decent credit.The crisis in the subprime lending industry in recent months crippled two hedge funds at Bear Stearns.Bear Stearns shares were down $1.22, or nearly 1 percent, to $127.35 in afternoon trading on the New York Stock Exchange.(Reporting by Lilla Zuill; editing by Tim Dobbyn) (c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
HP sees 'encouraging signs of recovery,' profit climbs 14 per cent San Francisco - The world's biggest computer maker Hewlett Packard said Monday that it saw encouraging signs of recovery as its quarterly earnings rose 14 per cent. The Silicon Valley company said it earned 2.4 billion dollars in the quarter, up fr...
US stocks gain on surprise home sales recovery New York - US stocks surged Monday after the release of some surprisingly buoyant data on home sales. Existing home sales surged to 6.1 million units in October, the highest annualized rate since February 2007 and up 10.1 per cent from September, acc...
Report: Microsoft and News Corp in search pact talks San Francisco - Microsoft and News Corp are in advanced negotiations that would see the media conglomerate's content removed from Google's search index and appear exclusively via Microsoft's Bing search engine, the Financial Times reported Monday. Ne...
US home sales surge to highest level since 2007 Washington - Existing home sales surged more than 10 per cent in the United States in October to their highest level since February 2007, according to figures released Monday. The monthly data by the National Association of Realtors (NAR) beat expect...
US economists: 'Jobless' recovery to reach bottom at start of 2010 Washington - The US economy will start adding jobs some time in the first quarter of 2010, ending a so-called jobless recovery that has plagued the world's largest economy since the summer months, according to a survey released Monday. But the Nati...
Hershey, Nestle, sweeten war for Cadbury Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
|
|
|
|
|
|
|
|