Morgan Stanley will close the British mortgage unit
20 February 2008
In view of market conditions worsening Morgan Stanley will dismiss 1000 workers in its mortgage company and will close British sub-prime unit, which the bank has bought more than two years ago.
The American investment bank accuses “disorders” in the mortgage markets of staff reduction in the USA and Great Britain, including closure of Advantage Home Loans, the British mortgage unit of the bank.
Anthony Meola, Morgan Stanley operations vice-president, has noted: «In view of instability in the mortgage markets, we have carried out re-structuring our mortgage business to adapt to new circumstances».
Morgan Stanley bought Advantage at the end of 2005 to join then still profitable British market of sub-prime mortgages. One of the most noted offers of the bank was the initial loan, which seven times exceeded their income.
- MUFG is to get 24,9 % of Morgan Stanley
- Swiss bank UBS closes its U.S Unit
- HSBC’s income has increased despite of the mortgage crisis
- More than one million British risk to be left without a roof over the head!
