Morgan Stanley axing 1,000 mortgage jobs
Morgan Stanley announced Wednesday the company will lay off 1,000 employees
as it scales back residential mortgage operations in the U.S. and closes a
UK-based subsidiary, Advantage Home Loans.
Morgan Stanley, which reported $9.4 billion in mortgage-related write-downs
in the fourth quarter, said it will continue to service U.S. mortgage loans
through Fort Worth, Texas-based subsidiary Saxon Mortgage Services Inc., and
offer residential mortgages to retail brokerage clients through Morgan Stanley
Credit Corp.
"Given the continued dislocation in the mortgage markets, we have
restructured our residential mortgage business to ensure we are appropriately
positioned for the environment going forward," said Anthony Meola, chief
operating officer of Morgan Stanley's U.S. residential mortgage business, in a
statement.
Morgan Stanley and its subsidiaries employed 48,256 workers globally at the
end of November, according to the company's annual report to investors.
The company's $9.4 billion in fourth-quarter write-downs included $7.8
billion related to U.S. subprime trading positions, mostly derivative positions
in collateralized debt obligations (CDOs), and $1.2 billion related to
commercial mortgage-backed securities, alt-A residential mortgages and other
loans.
Copyright 2008 Inman News
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