Credit Suisse Group said today that it would be cutting 150 jobs in its mortgage-backed securities division as a result of the continuing credit crunch.
“Given the current market situations, we will see targeted job cuts in investment banking. Today’s announcement will primarily affect mortgage backed securities,“ a spokesman said.
In recent months the secondary mortgage market where mortgage-backed securities are sold has become completely dysfunctional, making it nearly impossible to sell bundles of loans that aren’t conforming, agency-backed securities.
“Unlike private banking, investment banking is incredibly dynamic on both sides. When business slows, jobs are cut very quickly to adapt,” Andreas Venditti, an analyst at Zuercher Kantonalbank told Dow Jones Newswires.
The layoffs will take place mainly at offices in London and New York.
It is unknown how many mortgage jobs are currently held within Credit Suisse, as a spokesman declined to comment.
Credit Suisse is Switzerland’s second largest bank behind UBS, and is a leading mortgage packager, though it doesn’t originate mortgage loans itself.
Shares of Credit Suisse were trading down less than a percent, at $65.41.
See the latest list of mortgage layoffs, mergers, and lender closures.
Update: Credit Suisse has announced an additional 170 layoffs in its commercial mortgage backed securities area at its investment bank.