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Bear Stearns Announces Combination of Mortgage Origination Businesses

October 05, 2007 // Franchising.com // NEW YORK, NY — Bear, Stearns & Co. Inc. announced today that it is combining its mortgage origination lending businesses, Bear Stearns Residential Mortgage and Encore Credit, into a single unit under the name Bear Stearns Residential Mortgage Corporation (Bear Res). The combination will allow the firm to right-size the business to current market conditions and increase efficiency. As a part of this action, the firm announced today the reduction of 310 jobs across its mortgage origination businesses.

"We have a powerful mortgage franchise and this combination will allow our account executives better access to the full suite of products Bear Res can now offer," said Tom Marano, Global Head of Mortgages, Rates and Foreign Exchange. "A hallmark of our franchise has been our ability to adapt to changes in the market environment and product demand."

Since the beginning of 2007, Bear Stearns has reduced its mortgage origination related workforce by 40%. Leading the new combined origination unit will be Jeff Walton, current head of Bear Res who has been appointed CEO, and Shabi Asghar, former head of Encore Credit who has been named President.

"Looking ahead, we will soon be expanding our product menu to include Fannie Mae, Freddie Mac and FHA loans," added Mr. Marano. "These additions will increase our capabilities and further allow our brokers to select the products that best meet their customers' needs."

About Bear Stearns
Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The Company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. Headquartered in New York City, the company has approximately 15,000 employees worldwide. For additional information about Bear Stearns, please visit the firm's web site at www.bearstearns.com.

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