The brokerage giant Morgan Stanley Smith Barney is in the process of creating a private banking capacity to complement its wealth management activities, and is recruiting private bankers for the task, the firm told WealthBriefing.

The new private banking operation will be based in New York and Charlotte, North Carolina and will be developed over time, a spokesperson for the firm said.

Morgan Stanley Smith Barney is a joint venture between Morgan Stanley and Citi launched in June 2009, which saw Morgan Stanley’s Global Wealth Management business and Citi’s Smith Barney, Smith Barney Australia and Quilter retail units combined.

The combined entity employs around 18,000 financial advisors and had $1.3 trillion in client assets as at June 2009, making it one of the world’s largest wealth managers.

Morgan Stanley Smith Barney was unable to provide further details of the project at this time.