Lehman Does Some More Housecleaning

Lehman is trying to put to rest long-standing problems in its retail-brokerage division. On Sept. 27, Lehman Brothers dismissed 100 retail brokers, slashing its U.S. force by a third. The cuts follow a two-year effort by Lehman to repair its reputation for overly aggressive sales tactics. Now, the firm says it wants to focus on its most profitable brokers and its wealthiest customers. The mass layoff "closes the books on the old Lehman Brothers retail business and its methods," insists Robert Lunn, a Morgan Stanley veteran who has headed Lehman's retail brokerage since July.

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