Morgan Stanley scales back mortgage business
by Kay Murchie
Morgan Stanley, one of the world’s largest investment banks, has announced it is to scale back its mortgage lending business, which will result in 1,000 job losses.
As part of the review, the bank is to close its UK residential mortgage arm and will reduce its lending business in the US.
Anthony Meola, chief operating officer of the US residential business at Morgan Stanley, said 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.
Last December, the bank reported a write-down of $9.4 billion for the 3 months to end of November because of losses from investments linked to the US sub-prime mortgage market.
Over the last 6 months, more than 25,000 jobs have been trimmed in financial institutions globally as a result of the housing crisis and deteriorating credit conditions.
Last weekend, finance ministers from the G7 group of industrialised nations said losses from the US sub-prime mortgage collapse could reach $400 billion.
Discuss this in the Finance Markets forums
Story link: Morgan Stanley scales back mortgage business
Add to Bookmarks:
Related financial stories to: Morgan Stanley scales back mortgage business
- Morgan Stanley forced to write-down £1.1 billion
- Morgan Stanley holds talks with Wachovia and CIC
- City jobs axed at Morgan Stanley
- Goldman Sachs and Morgan Stanley abandon investment bank status
- Mitsubishi acquires stake in Morgan Stanley
- Fears for the future of Goldman Sachs and Morgan Stanley
- FTSE falls as Morgan Stanley warning coming true
- Morgan Stanley predicts new stock market crash
- Morgan Stanley warns of equities market “correction”
- Morgan Stanley Advantage: what a bunch of muppets
Previous: « Egg delivers another blow to customers
Next: BoE Governor warns of “several years” of house price stagnation »
Visited 3375 times, 3 so far today
