Lehman Brothers Announces Closure of Personal Loans and Mortgage Companies

Fri, 07 Sep 2007

Lehman Brothers has announced that it will be closing both Southern Pacific Personal Loans and London Mortgage Company, as it plans on withdrawing from the second charge market.

The firm insisted it will continue to focus on both Southern Pacific Mortgage Limited and Preferred, and will secure some of LMC’s features and its sales force into the two brands .

The move from the investment bank comes as plans for a global restructure are being put into place, which is likely to result in the loss of around 850 jobs worldwide (100 in the UK) .

Lehman has decided the rename the business Lehman Mortgage Capital and says that significant planned investment in the IT re-platforming will further develop and differentiate the brands to offer strong competitive choice.

The news also follows last month’s announcement from Lehman Brothers that it was closing its US sub prime mortgage subsidiary BNC Mortgage LLC subsidiary, due to the current sub prime crisis in the US .

Ted Janulis, global head of mortgage capital at Lehman Brothers, said: "While these moves are extraordinary difficult because of the impact they have on our people, we now have a business that is sized correctly for the current environment and positioned for long-term success ."
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