“J.P. Morgan Chase & Co., scarred by a series of financial-industry setbacks, announced a shakeup of its top ranks that included the departure of its highest-profile investment banker and the reassignment of other top managers,” writes Paul Beckett in today’s Wall Street Journal.

“The nation’s second-largest bank, the product of the 2000 merger between J.P. Morgan & Co. and Chase Manhattan Corp., has been hit hard in the last few months by virtually every major problem dogging the financial world. Its role as a major lender to busted telecommunications companies, troubled high-technology firms and collapsed energy firm Enron Corp. caused the bank financial distress and unnerved shareholders.”

“Its stock price has sagged more than 20% over the last year, despite a recent rebound. Chief Executive William Harrison, a gentlemanly executive who prides himself on teamwork, was under increasing pressure from investors to show his determination to revive the bank’s fortunes and revamp his senior management.”

“Thursday’s shuffle featured one high-profile casualty and one extraordinary comeback. Departing is Geoffrey Boisi, co-head of J.P. Morgan’s investment-banking operations, who the bank said had decided to leave in the face of Mr. Harrison’s decision to reorganize. David Coulter, who a few years ago was ousted from Bank of America Corp. where he had been heir apparent, was named sole investment-banking head in Mr. Boisi’s place. He becomes the bank’s most influential business manager.”

” ‘I wanted to review the mix of people and make sure there were people in place to maximize teamwork and partnership,’ Mr. Harrison said in an interview. ‘In that context, I made changes and Geoff decided to leave the firm.’ “

“Mr. Boisi was once viewed as Mr. Harrison’s eventual successor. He wasn’t seen as connected to the bank’s troubled loans; rather, insiders say his sometimes aloof manner had become increasingly out of sync in recent months with Mr. Harrison’s desire to foster teamwork. In an interview, Mr. Boisi acknowledged that he and Mr. Harrison over time had ‘agreed to disagree on a number of key philosophical, policy and people issues.’ “

“Mr. Boisi, 55 years old, has been a well-known figure on Wall Street since the 1980s when he was head of investment banking for Goldman Sachs Group. He took his current job two years ago when Chase purchased Beacon Group, the investment-banking boutique he led, for about $500 million.”

“Mr. Coulter also joined Chase from Beacon Group at the time of the purchase and became head of J.P. Morgan’s retail banking and asset-management business. He will retain oversight of investment management and private banking. Donald Layton, who had been Mr. Boisi’s investment-banking co-head, takes over Mr. Coulter’s job running the retail bank, which includes branch banking, credit cards and lending to small and mid-sized companies.”

“The investment bank, which accounts for roughly half of J.P. Morgan’s earnings and includes commercial lending, has had a difficult several months: the division posted first-quarter earnings of $755 million, down 27% from a year earlier.”