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M Stanley Cuts 600 Mortgage Jobs

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M Stanley cuts 600 mortgage jobs

By Ben White in New York

Published: October 3 2007 00:01 | Last updated: October 3 2007 00:53

Morgan Stanley on Tuesday said it would cut 600 jobs as it restructured its mortgage business to reflect lower loan origination levels.

The bank said 500 of the cuts would come in the US and 100 from Europe, including 90 in Advantage, Morgan Stanley’s UK mortgage subsidiary. It is not cutting any New York-based trading or securitisation staff.

The cuts are the latest in a wave of reductions stemming from the US housing market slowdown and the credit market squeeze. Lehman Brothers has slashed 2,500 mortgage-related jobs and Credit Suisse on Tuesday said it would cut 170 more jobs in its investment banking division, bringing its total reductions to 320 over the last week. More cuts are expected across Wall Street.

As part of the restructuring, Morgan Stanley said it would integrate its three standalone US mortgage businesses into one, based in Irving, Texas. Some regional offices will be closed.

Like other Wall Street banks, Morgan Stanley has pushed to increase its presence in the mortgage business in recent years, including by buying lenders to ensure a reliable flow of product to be packaged into securities and sold to investors. Demand for those securities has waned in the wake of the credit squeeze and the crisis in the subprime mortgage market. Morgan Stanley last year paid $706m ($346m) to buy Saxon Capital, a subprime lender.

Tony Tufariello, global head of securitised products said: “Morgan Stanley remains committed to building the leading vertically - integrated mortgage business and growing our Saxon Capital servicing operations despite the cyclical downturn in the mortgage markets”.

● Morgan Stanley’s private equity arm has raised $1.5bn to spend in Asia, adding to the wall of money being amassed for investments in the region, writes Sundeep Tucker in Hong Kong.

The amount raised for Morgan Stanley Private Equity Asia III is nearly treble that of the previous Asia fund in 2005. The bank said half the fundraising came from US investors, with 80 per cent from institutions.

The bank’s private equity division began investing in Asia in 1999, when it took stakes in companies in Taiwan, Singapore and South Korea. It has invested heavily in China, both in state-backed companies such as Ping An Insurance and private groups including Mengniu Dairy.

http://www.ft.com/cms/s/0/a7d232f8-7138-11...00779fd2ac.html

also

http://nplonline.co.uk/story.asp?id=1692

Mate msn'ed me the news, sadly he got the chop too :<

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This is the part that I find most unpalatable.

House price rises and falls are benign to people who are sensible with their attitude to debt but job losses hurt real people and families.

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House price rises and falls are benign to people who are sensible with their attitude to debt

House price rises are benign to no-one; they constitute an economic rent, a tax on productivity; any sane society would look to any opportunity to reduce this tax, not seek to increase it exponentially.

Edited by ParticleMan

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this is just the start.

The big job losses haven't even started yet imo.

Northern Rock employs over 5,000 people ..... Any guess as to how many will lose their jobs when the mortgage book is sold to a private equity firm?

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This is looking like becomming winter of discontent 2 :ph34r:

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ohwell more cuts to manufacturing.... who cares its only manufacturing.

Morgan what? oh bummer thats not manufacturing, there some kind of bank aren't they ;p

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I take it we're talking about America here, i don't give a damn about what happens over there. Just because there in a mess doesn't mean we have to be. You could actually report on the fact that manufacturing is booming in the USA due the dollar against the Euro and £££....so a few pen pushers have lost there jobs but 1000s more employed in manufacturing....real jobs.....but the irony is that this is killing our industry.

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I take it we're talking about America here, i don't give a damn about what happens over there. Just because there in a mess doesn't mean we have to be. You could actually report on the fact that manufacturing is booming in the USA due the dollar against the Euro and £££....so a few pen pushers have lost there jobs but 1000s more employed in manufacturing....real jobs.....but the irony is that this is killing our industry.

actually manufacturing in the US is also employing fewer people:

http://www.marketwatch.com/news/story/us-h...63D4B50F2F66%7D

Manufacturing and housing have been the sectors with the largest job losses in the past year, in both the ADP and government data.

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Guest Bart of Darkness
This is looking like becomming winter of discontent 2 :ph34r:

Not even close.

When the schools are shut because there's no heating oil to keep classrooms warm, then you might have a WOD.

When rubbish is piling up outside people's houses because no one is collecting it, then you might have a WOD.

When the army is put on standby to take over from striking oil tanker drivers ("Operation Drumstick"), then you might have a WOD.

When petrol stations close due to lack of supplies, then you might have a WOD.

When things get so bad that the government seriously considers declaring a State of Emergency, then you might have a WOD.

When ambulance drivers in London, West Midlands, Cardiff, Glasgow and the west of Scotland start refusing to take 999 calls, then you might have a WOD.

When the Secretary of State for Social Services has to announce that 1,100 of 2,300 National Health Service hospitals are only treating emergencies, that practically no ambulance service is operating normally, and that the ancillary health service workers are deciding which cases merit treatment, then you might have a WOD.

It's all here. Makes interesting reading for those who didn't live through it (which I think must include dogbollux).

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Northern Rock employs over 5,000 people ..... Any guess as to how many will lose their jobs when the mortgage book is sold to a private equity firm?

....ooh now lets see:

salesmen.....check.No longer needed

credit checkers....check.Duplicated.

Accounts staff....check.Duplicated

Branch managers..check.Duplicated

HR and other spin-offs....check.Duplicated

Beryl the sandwich lady...check......got to buy own grub,not even going to stretch to paying for the electric for a coffee machine now....bring a f@cking thermos and lots of jumpers!!!!

....to all you Northern rock folks....BAAAH HUMBUG

you played your part in this boom,now you can suffer the consequences,now bend over and take it like a good *******

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It's all here. Makes interesting reading for those who didn't live through it (which I think must include dogbollux).

Yup lived through it. And the three day week, power cuts, miners strikes, 70's oil crisis. IMF loans, sterling crisis, balance of payments crisis, stagflation...

Then in the eighties I had a little import business with the pound dropping like a stone against

the dollar!

The 70's looking back seems like a different planet!

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