Wall St. Bank to cut 310 jobs

Source: Stock Market Digital

Date :10/4/2007 3:46:50 AM

Following news that Lehman Bros and Morgan Stanley are shedding staff, Bear Stearns has said that it will merge its two mortgage businesses and cut 310 jobs.

After a summer of turbulence in the home loan industry, the three Wall St. banks, along with Credit Suisse and Countrywide, have made considerable cuts to their workforces.

Bear Stearns alone has said that its cuts make up 40 percent of its mortgage businesses.

"You're going to see continued cutbacks in areas where there was a lot of growth in the past couple of years that are now troubled such as CDOs, structured credit, mortgages, general credit," said Russ Gerson, chief executive of the Gerson Group.

"But I also anticipate a general cutback across the board as institutions go through compensation/promotion process over the next six to eight weeks."

Shares in Bear Stearns fell 34 cents to $128.23.

October 4, 2007

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