What took so long? After Lehman Brothers cut about 2,500 jobs in its mortgage business a while back, people speculated that more cuts would be necessary. Sure enough, the other shoe has dropped. The company has announced it will take a $40 million charge to scale back its mortgage business. About 1,300 more jobs will be cut. Exiting the wholesale and correspondent lending business is a good move, but it reminds us all of how the world has changed. Lehman, of course, was a pioneer among banks that pushed into mortgage origination in order to lock supply for the subprime asset-backed business. Much of that is gone for good.  

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- here's the AP article