JP Morgan has announced a reorganisation of its corporate and investment banking division, creating two units and shifting the decade-long head of its equities business to run a restructured arm catering to institutional investors.

The corporate and investment bank, which was recast in late July as part of an overhaul in the wake of the bank's $5.8bn trading loss on credit derivatives, will now be divided between banking and market and investor services. An internal memo announcing the changes was sent out by Mike Cavanagh and Daniel Pinto, the division's co-leaders.