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Morgan Stanley reported job cuts of 600 yesterday as it combined its three mortgage divisions in to one; and now it is Bear Stearns’ turn. Bear announced today cuts in its mortgage divisions as a result of combining its two mortgage units Bear Stearns Residential Mortgage and subprime unit Encore Credit:
Bear Stearns Cos. said on Wednesday that it’s cutting 310 jobs as the investment bank scales back its residential mortgage lending business amid rising delinquencies and slumping volumes in the industry.
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The move will allow the firm to reduce the size of the business to fit current market conditions and increase efficiency, Bear said. The firm has cut its mortgage origination workforce by 40% so far this year, it noted.
Bear is the latest Wall Street firm to make a move, following Morgan Stanley yesterday and Lehman’s closure of subprime mortgage unit BNC in August.
