Management Shake-Up At JP Morgan

The bank has been hit hard by a number of recent problems that have beset the banking industry generally. It was a major lender to bankrupt telecommunications businesses, was heavily exposed to the troubled hi-tech sector and had a cozy and ultimately expensive relationship with the Enron Corporation, the failed energy giant.

Despite a recent rebound, the bank's share price has fallen 20% in the last 12 months.

Chief Executive William Harrison is under increasing pressure from shareholders and he has now acted by restructuring his senior management team. Geoff Boisi, co-head of investment banking operations, is to leave and David Coulter is to replace him. Boisi was once regarded as Harrison's heir apparent.

Boisi, 55, is a well-known figure on Wall Street and was previously head of investment banking at Goldman Sachs. He joined JP Morgan two years ago when the bank purchased his investment banking boutique, Beacon Group, for $500m.

It is thought that Boisi's somewhat aloof manner may have caused difficulties in his relationship with Harrison. Boisi had said in a recent interview that he and Harrison had 'agreed to disagree on a number of key philosophical, policy and people issues.'

Coulter, previously ousted by Bank of America in a shake out there, also came with the Beacon deal.