Lehman Closes Subprime Unit and Lays Off 1200
Lehman Brothers , a leader in packaging subprime mortgages into securities, said yesterday that it would shut one of its home lending units and lay off 1,200 employees. The bank said it would take a $52 million charge to third-quarter earnings.
“Lehman Brothers announced today that market conditions have necessitated a substantial reduction in its resources and capacity in the subprime space,” the firm said in a news release.
The announcement came on a day when Wall Street’s concerns about the credit markets seemed to ease, at least for now; the three major markets all rose more than 1 percent. The rush to the safety of short-term Treasury markets also slowed.
As part of the effort to calm the markets, several banks, at the prompting of the Federal Reserve, borrowed $2 billion from the discount window.
KKR and KSL Buy Travel Packager Apple Leisure from Bain Capital
Private equity firms KKR & Co. (NYSE: KKR) and KSL Capital Partners LLC have teamed to purchase vacation hospitality company Apple Leisure Group from Bain Capital Private Equity . Terms of the deal were undisclosed.
Apple Leisure is a Newtown Square, Pennsylvania-based travel and hospitality group that focuses on all-inclusive packaged travel and hotel management in Mexico and the Caribbean. The conglomerate’s collection of travel and leisure businesses include destination management and travel distribution brands such as: AMResorts, Amstar, Apple Vacations, Travel Impressions, Unlimited Vacation Club, CheapCaribbean.com and Worldstar DMC.
KSL, headquartered in Denver, Colorado, is a private equity firm that targets investments in travel and leisure businesses. The firm can invest up to $400 million in equity per transaction and has previously invested in a plethora of well-known properties, including: the Village Urban Resorts in the U.K. ; the Belfry, home to the PGA National Golf Academy and other golfing events, in the West Midlands of the U.K.; and the Miraval Resort & Spa in Tucson, Arizona. The firm also owns ski resorts Squaw Valley and Alpine Meadows in California. The PE firm has an additional office in London.