Morgan Stanley Announce Closure Of Home Loans Subsidiary

Wed, 20 Feb 2008

US investment bank Morgan Stanley has announced the "immediate" closure of its UK mortgage lending subsidiary Advantage Home Loans, which will result in the loss of 160 jobs .

The firm said its closure of its Cheshire-based home loans business is part of a wider plan to cut 1,000 jobs as the bank scales back its mortgage operations in both the US and the UK, due to the "continued deterioration" of the mortgage business .

Last summer’s credit crisis, which hit the sub-prime investment market, has forced the lender to write off billions of dollars worth of assets .

The closure of Advantage Home Loans, which has a loan book worth around £1 billion, is expected to take place within the next few months.

The niche lender, which provides UK mortgages for people with poor credit histories and other specialist products, refused to comment on how many HR staff would be affected by the closure.

Anthony Meola, chief operating officer of the US residential business at Morgan Stanley, said: "Given the continued dislocation of the mortgage markets, we have restructured our residential mortgage business to ensure we are appropriately positioned for the environment going forward."
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