Bear Stearns to axe 240 sub-prime jobs

17 August 2007

Bear Stearns is cut around 240 sub-prime lending jobs, it has been confirmed.

About 140 jobs will be cut at Bear Stearns Residential, while a further 100 will be cut at Encore Credit, the sub-prime mortgage lender the bank acquired last year for $26 million.

An e-mailed statement from Bear Stearns said: "In the normal course of business Bear Stearns Residential Mortgage Corp. and Encore Credit evaluate market conditions and staffing levels in an effort to identify areas where we can eliminate redundancies and improve the efficiency of our operations.

"As a result we have made the decision to reduce our staffing levels and close two operation centers.''

Jobs at the bank's Wall Street Operations are to be unaffected by the moves, according to the statement.

News of the cuts comes amid a crisis in the US sub-prime mortgage market, which has seen two funds overseen by Bear Stearns collapse, prompting a rash of lawsuits from aggrieved investors.

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