Rumors are swirling that BNC Mortgage, Lehman’s subprime mortgage company, is getting ready to undergo a massive restructure and round of layoffs that could impact hundreds of employees.
No confirmed details of this news yet, but it makes sense. Lehman just announced that it would merge BNC with Aurora Loan Services (Lehman’s alt-a originator). Consolidation and merging is usually done for economic efficiencies and layoffs certainly fall in that category. The only question is will these layoffs be on top of the previously announced ones, or is it just a rehashing of Lehman’s existing announcement?
With Wall Street starting to bear the brunt of the subprime meltdown via collateral mark downs, it makes sense that these Wall Street players would get aggressive as possible in trying to mitigate loss from their mortgage units.
We’ll wait and see.
Last 3 posts by Morgan
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