J.P. Morgan Private Bank Lays Off Nearly 100 Employees
May 23 2016 - 4:20PM
Dow Jones News
J.P. Morgan Chase & Co.'s private bank announced internally
another round of layoffs affecting nearly 100 employees, people
familiar with the matter said.
The unit shared the news within the bank Monday. The moves,
which affect employees in a range of positions and locations,
follow previous rounds of layoffs across the country in recent
months.
J.P. Morgan has been recalibrating its private bank this
year.
The Wall Street Journal previously reported that J.P. Morgan's
private bank clients later this year will be required to have at
least $10 million in investible assets, twice the current minimum
of $5 million.
The shift is one of the boldest yet among banks that are
increasingly focused on managing the money of wealthy clients, who
generate more fees and entail less risk than middle-class and
lower-income customers. However, because wealthy clients typically
require more attention, banks are being more discriminating when
deciding who qualifies for such personalized service.
Every year the division reviews its employee ranks and culls
underperformers, one of these people said. The private bank, which
has around 12,000 people, continues to actively hire, this person
added.
Large U.S. banks in recent years have been expanding
wealth-management units, which don't tie up as much capital on the
balance sheet under new regulations designed to restrict riskier
activities. Wealthy clients also typically generate a steady stream
of revenue because fees are based on a percentage of assets under
management rather than transactions.
Revenue in J.P. Morgan's private bank has increased nine of the
past 10 years, hitting $5.8 billion in 2015, according to
filings.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
May 23, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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