Lehman Brothers Shuts Down Subprime Unit, Fires 1,200
August 23rd, 2007Via: Bloomberg:
Lehman Brothers Holdings Inc., the biggest underwriter of U.S. bonds backed by mortgages, became the first firm on Wall Street to close its subprime-lending unit and said 1,200 employees will lose their jobs.
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BNC made about $2 billion of loans in the first quarter, down 40 percent from a year earlier, according to industry newsletter National Mortgage News. The unit’s 23 offices in eight states will be closed.
Lehman said in June that it would merge BNC and Aurora within three months, eliminating 400 jobs. Aurora originated $7 billion of Alt-A loans to better-rated borrowers in the first quarter, down from $10 billion, National Mortgage News reported.
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