JPMorgan Reorganizes Wealth Business
(Updates and corrects fourth and sixth paragraph to show reporting lines to Erdoes.)
JPMorgan Chase said Tuesday that it appointed Barry Sommers, a legacy Bear Stearns executive, to lead a new wealth management unit as part of a reorganization of its brokerage and consumer banking businesses.
Sommers, who most recently ran the bank’s 5,600 branches and 70,000 employees, is now co-head of a newly constituted Wealth & Investment Management division along with Brian Carlin, who was chief financial officer of the asset management unit, a bank spokeswoman said.
Sommers also assumes the title of CEO of Wealth Management, keeping him in charge of in-branch brokerage for the mass affluent and expanding his realm to J.P. Morgan’s private bank for the ultra-wealthy and J.P. Morgan Securities, the legacy Bear Stearns brokerage business.
The changes, announced in an internal memo by asset management division head Mary Callahan Erdoes and reported earlier Tuesday by The Wall Street Journal, follow a cauldron of change over the past year that led to sweeping layoffs in the private banking division and the recent departure of several high-producing brokers. Sommers and Carlin report to Erdoes under the new alignment.
JP Morgan also antagonized many private banking employees by doubling account minimums to $10 million and reducing client support as part of what it called new client segmentation strategies.
Kelly Coffey retains her position as chief executive of JP Morgan’s U.S. private bank, the spokeswoman said. When Phil Di Iorio retires as JP Morgan’s wealth management head at the end of the year, Coffey will report to Sommers.
Thasunda Duckett, who had been in charge of the bank’s auto finance unit, assumes Sommers’ former role as head of the consumer bank under the new arrangement.
Prior to Bear Stearns’ merger into JPMorgan during the financial crisis, Sommers ran Bear’s private client business for wealthy individuals and middle-market institutions. He previously oversaw Bear’s mutual fund and separate account business, according to .
Sommers began his career at Putnam Mutual Funds Corp. in Boston in 1992, moved to Goldman, Sachs & Co. in 1995 and joined Bear Stearns in 1997, according to Finra’s BrokerCheck database.