Morgan Stanley is cutting more than 1,000 jobs here and in the U.K. as it scales back its residential mortgage lending division in both countries. Pundits have argued that European housing markets may be more overheated than here in the states and Morgan Stanley is taking its remaining chip stack off the table and waiting for a better game. (apologies for the random poker reference)
From the Market Watch article on the Morgan Stanley job cuts and mortgage lending scale down:
Morgan Stanley said Wednesday that it is scaling back its residential mortgage business and ending its lending program in the United Kingdom, becoming the latest victim of the ravaged home lending business.
The firm said the moves would eliminate a cumulative 1,000 jobs the U.S. and the U.K.
“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,” Anthony Meola, chief operating officer Morgan Stanley’s U.S. residential business, said in a statement.
As part of the change, the world’s second-largest securities firm will close its British mortgage business, Advantage Home Loans.
The bank said it would still offer residential mortgages through the Morgan Stanley Credit Corporation, but only through its residential brokerage. The arrangement will continue an existing partnership between the bank’s global wealth management and institutional securities business.
Morgan Stanley said it will continue servicing mortgage loans through its Fort Worth, Texas-based Saxon Mortgage Service platform.
Can you blame them? Hemmoraghing cash, taking massive losses, attempting to mend relationships with wealthy overseas investors, and sitting on a big pile of who-knows-what in mortgage debt can make anyone gun shy.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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