Donal McCarthy, a spokesman for the bank, confirmed the move and said that 100 of the job cuts will be in New York. He added that the majority, but not all, of the layoffs are directly related to the MBS close. The other 20 cuts are being made in the U.K. McCarthy declined to give details about why HSBC has halted the sale of MBS in the U.S., but it is believed to be a result of the bank closing an Indiana-based mortgage office in August and its Decision One subprime-mortgage desk in September. The bulk of the bank's origination came from these two units and that origination flow has now dried up. HSBC is expected to make a filing of its third quarter results on Nov. 14 and will reaffirm the cuts in a conference call.

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