Lehman Brothers has announced that it will be withdrawing from the second charge market and will close both Southern Pacific Personal Loans and London Mortgage Company.
It says it wiill continue to focus on both Southern Pacific Mortgage Limited and Preferred, and will consolidate some of LMC’s features and its sales force into the two brands.
This comes as the investment bank announces a global restructure , resulting in 850 job losses globally. It is understood that there will be around 100 job losses in the UK.
Lehman says that significant planned invetment in the IT re-platforming will further enhance and differentiate the brands to offer strong competitive choice. It has also decided the rename the business Lehman Mortgage Capital.
This 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 rocking the US.
At the time, a spokeswoman for Lehman Brothers said that it remained committed to its European mortgage business.
Lehman Brothers global head of mortgage capital Ted Janulis says: “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.”