RSS FeedsInvestment bank announces job cuts in its mortgage business
16/02/2008
Investment Bank Morgan Stanley will be closing their sub prime UK Mortgage business Advantage Home Loans which based in Cheshire, Ellesmere Port. The closure will see around 160 people who could be losing their jobs.
In total around 1000 people are said to be affected, this includes its UK and US mortgage operating business.
According to the announcement Morgan Stanley had only just acquired Advantage Home loans in the last two years (2005). Changes in the sub prime mortgage market seem to point to the key reasons why these changes have been required, along with FSA commenting in the increase in fraud.
Chief Operating Officer of Morgan Stanley commented “Given the dislocation in the mortgage markets, we have restructured our residential mortgage business to ensure we are appropriately positioned for the environment going forward.”
The investment bank has indicated that Saxon Mortgage Services will still be used as the vehicle to sell mortgages.
Additional research shows that around 19,000 jobs have been axed by many banks and brokers in the United States and they have reported losses of around $146 billion that are linked to mortgage securities.