Morgan Stanley cuts 170 jobs

[OhioChick]

December 20, 2006, 5:53PM EST

Morgan Stanley has cut 170 positions at its recently acquired subprime mortgage unit, Saxon Capital Inc., as part of its reorganization of the business.

The New York investment bank is shutting down Saxon's business of lending directly to consumers to focus on lending through mortgage brokers and mortgage servicing, said Morgan Stanley spokesman Mark Lake.

The job cuts, which was first reported Wednesday by National Mortgage News on its Web site, accounted for about 14 percent of Saxon's work force.

Morgan Stanley in August struck a $706 million deal to acquire Glen Allen, Va.-based Saxon in a bid to build a residential-mortgage business to fuel its business of packaging mortgage loans into securities. The transaction closed early this month.

http://www.businessweek.com/ap/financialnews/D8M4RU680.htm

[Captain Hilts]

1. What were executive bonuses worth? nt

[geomon666]

3. About $40 million..........for one man.

http://money.cnn.com/2006/12/15/news/newsmakers/mack_bonus.reut/index.htm?postversion=2006121507

NEW YORK (Reuters) -- Investment bank Morgan Stanley's CEO John Mack has been awarded a bonus worth about $40 million in stock and options for 2006, according to a regulatory filing Thursday.

However, Mack's compensation is likely to be topped by one or more of his rivals, according to a report published Friday by The Wall Street Journal.

The payout comes amid a boom time for investment banks, advising private equity firms flush with cash in their pursuit of acquisitions, raking in hedge fund fees and profiting from elevated levels of bond and stock trading.

The high profits are translating into multi-million dollar bonus awards for bankers - two studies released in November show that Wall Street bonuses should rise by double-digit percentages this year.

The Journal said that Goldman Sachs Group (Charts) CEO Lloyd Blankfein's compensation will exceed $50 million, citing a person familiar with the matter. The paper said that is believed to be a record for big-firm chief executives.

Goldman Sachs was not immediately available for comment.

[don954]

2. what a way to say merrry fking xmas

[Maraya1969]

4. I just heard on TV today that people have been making a lot of money on the Stock Market

this year. If a company is doing really well they usually do not cut jobs. But maybe it is just the stock market that is doing good and the investors are making a windfall.

[Kelvin Mace]

5. Translation

"subprime mortgage unit" = Predatory lender.

[MADem]

6. A lot of houses on the market, but no one is buying....makes it hard to prey when there's fewer

chumps in the forest!

[Sherman A1]

7. Agreed and Well Said.

But subprime sounds so very much nicer.....

[BlueInPhilly]

8. Saxon was a vastion of Republicans

but I bet it's the lowly, black clerk who got booted out.