J.P. Morgan & Co. has reorganized its domestic private banking business, elevating two senior executives to new positions.
Joel I. Cohen, a managing director in international funds management, will oversee the development of customized products for the bank's wealthiest private clients. Mr. Cohen, who has held senior positions in Morgan's securities and futures subsidiaries in New York and London, will concentrate on sales of sophisticated advisory services and hedging techniques.
David Burrows, a managing director who was in charge of private banking in New York and New Jersey, will coordinate Morgan's strategy in key geographic regions. He also will work on developing a line of structured investment products that are less customized than those overseen by Mr. Cohen.
The two executives appear to be assuming the responsibilities of John Lane, a managing director who had been head of U.S. private banking. Mr. Lane is expected to be handed new responsibilities soon, but a Morgan spokesman said it was premature to comment on what those might be,.
Mr. Cohen and Mr. Burrows will report directly to Arthur Sculley, Morgan's private banking chief.
In confirming the reorganization, which was announced internally on Tuesday, the spokesman said the bank wants to strengthen its product development skills and sharpen its focus on wealthy markets. Mr. Burrows will oversee bankers in New York, Texas, California, Illinois, and Florida.
The changes reflect 16 months of interviews with Morgan clients and employees on ways to better sell private banking services, which range from relatively passive estate and trust management to aggressive money management techniques for entrepreneurial investors.
The changes "will lower our cost of delivery and increase our focus on developing leadingedge advisory services," the spokesman said.
It is also designed to "upgrade and expand" Morgan's line of structured investment products, the spokesman said.
Morgan, with $26 billion in assets under management worldwide, is one of the biggest private banks in the world.
The banking company does not disclose revenue figures for the unit, but it is believed to be highly profitable.