Why JP Morgan embarked on its private banking trim

The decision to cut 5% of Asian relationship managers at its wealth management arm is a tacit admission by the US bank that its targeting of lower-end millionaires was a mistake.

Sometimes servicing the very wealthy simply isn’t enough.

On Wednesday news broke that JP Morgan, which boasts that it serves wealthy clients possessing $1.05 trillion in assets, had cut 30 people from its Asian private banking operations. Most were front office staff and they included Edwin Lim, market manager for high net worth clients in North Asia.

The bankers were all focused on high net worth, as opposed to ultra-high net worth, individuals. The move was made in an effort to slim the bank’s cost base and return to its old strategy of banking the richest of the rich.

A JP Morgan spokeswoman confirmed...

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