Never seen this happen! WTF does this mean? Need help from someone with Private Bank experience

cat-shjt's picture
Rank: Monkey | 45

Hey all.

I am a post MBA from a top 3 school. Graduated in 2010, and I have 7+ years of strong management experience. I quit my post MBA job because it was terrible, and I have been applying to BB jobs for the last two or three months. I have gotten some hits, but I got one call from someone in the project management arm of JP Morgan Private Bank. It was a good phone interview, and she also said she would pass me on to person B who also had another position available.

I then got a call from person B, an office manager in the Private Bank who said the position was directly in a <span class='keyword_link'><a href="/finance-dictionary/what-is-private-banking-PB">private banking</a></span> role, so I assumed I was looking at the standard private wealth associate position, a common post <abbr title="Masters in Business Administration">mba</abbr> job (correct?). Interview was pretty good.

Then later that night I got a call from an MD in person B's group who wanted to tell me more about the position. He called it a 'client service administrator,' said it was part of a new group they are building, and said that it would mostly be mundane prospecting. Then, get this, he said the salary would be about 30k, but that I would get a piece of any business I brought in. He said he know that I had a great resume, but that I would also know that there would be tremendous upside, and that, if I did the job for a year or two, I could grow into other positions. How does this happen?! I know the market is bad, but since <span class='keyword_link'><a href="/company/jpmorgan-chase">when did <abbr title="JP Morgan">JPM</abbr></a></span> become AFLAC. Also, correct me if I am wrong, I was under the impression that there was minimal prospecting required for $50+ million clients. Also, the MD's linkedin profile says <abbr title="JP Morgan">JP</abbr> Morgan Securities. Isn't this the retail arm?

Can someone tell me what is going on here? I would absolutely consider the project management position, or a standard private bank associate position, but I was pretty frigging insulted when I heard about the base being 1/4 my previous base. That barely covers student loans. How does this happen at JPM? They want me to come in next week to meet the group.

Comments (10)

Jan 21, 2011

I don't have any experience, but it sounds pretty sketchy. It doesn't sound at all like it is what you're looking for either...

Jan 21, 2011

i agree. I was just wondering what the hell they were thinking, That pay is like for GED-level employees. Now i have to get myself out of the interview while still trying to get one from the original contact.

Jan 21, 2011

Private banking is dealing with very high level net worth clients and can be very interesting. This sounds like private wealth managment...

Jan 21, 2011

but for some reason the one thing that keeps standing out to me is that she said 'ultra-high net worth clients.' That is PB. But sure enough, her signature says:
J.P. Morgan Securities LLC
JPMorgan Chase Bank, N.A.

Jan 21, 2011

sounds sketchy...I'd keep looking.

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Jan 21, 2011

Not sketchy per say.
Private banking / private wealth management / retail are all the same macro idea. The target audience can be different and teams can be structed exactly the same across all 3.
Chase is the retail arm of JPMorgan -working out of your local chase commercial branch.
If they are part of the private bank, they are doing "more sophisticated" work. 30k is on the low end, even for entry level retail "brokers/advisors."

As a client person though, you will not be doing prospecting. Client service admin is ops/admin depending on team size and client base. You may be responsible for opening accounts/ transferring funds etc... or you may be involved in talking with clients about account admin items -no investment/prospecting at all. (unless the team is set up where you do some prospecting and client servicing). Be very clear what you will be doing. Its easy to blur the lines / titles.

PB will NOT offer you 30k for a "prospecting" role. You can get a higher salary at wells with 0 experience and 0 clients.

PM me if you have further questions/concerns.

Jan 21, 2011

LAWM generally sounds like he knows what he is talking about so I'd listen to him.

It definitely doesn't sound like an FO role, though. I can't imagine any BB paying $30k for a decent position...

Jan 22, 2011

I think I know what is going on here.

First, JPM PWM/PB has a number of divisions that all fall under JP Private Banking. Let's just stick with the three that are applicable in this situation:
1. JPM Private Wealth Management (for clients < $25M)
2. JPM Private Bank (for clients > $25M)
3. JPM Securities (formerly Bear Stearns Private Client Services).

JPM PWM and JPM PB are terms only used internally. So a client won't know if they are a PB client or a PWM client, they are just a JPM Private Banking client. Both JPM PB and PWM operate on a salary + bonus compensation structure.

When JPM bought Bear Stearns in 2008, they acquired Bear Stearns PCS, which is a very lucrative business with a culture very different than JPM PWM/PB. Unlike, JPM PB/PWM, Bear Stearns PCS operates on a commission basis. JPM did not want to disrupt the way Bear Stearns PCS brokers worked since they do what they do very well. So while the business technically falls under the JPM Private Banking umbrella, they operate basically as a separate entity.

Not that it takes a rocket scientist to draw the logical conclusion here, but you are interviewing for a position with the heritage Bear Stearns PCS team.

Jan 22, 2011

ah ok, well that is interesting. Thanks so much. That makes sense, because I think I recall the guy bringing up bear stearns. I can't imagine that I would have much opportunity to make a commission, since I would just be doing administrative stuff. Now to figure out how to gracefully bow out.

Jan 23, 2011