Lehman Brothers Closes BNC Mortgage Subsidiary Amid Tumult in Home Lending Market

The AP reports:

Lehman Brothers Holdings Inc. is closing its "subprime" mortgage business because of the tumult in the home lending industry, the bank said Wednesday.

The Wall Street brokerage said it is shuttering its BNC Mortgage LLC subsidiary, which issues home loans to people who cannot document their income or have shaky credit histories.

Lehman will lay off 1,200 workers at 23 offices.

Fed easing doesn't seem to be bringing back the sub-prime market.