Alexandra and James Lebenthal, who left Merrill Lynch & Co. last year alter the firm dropped their family brand name, plan to resume their Walt Street careers by joining an Israeli bank.  Blocked from using the Lebenthal brand name still held by Merrill, the father-and-daughter team will call the new venture simply Alexandra & James. The plan is expected to be announced this week.

Alexandra Lebenthal, age 42, will become the chief executive of the broker-dealer unit of Israel Discount Bank of New York, a subsidiary of Israel Discount Bank, where an investor group led by Matthew Bronfman and Rubin Schron recently acquired a controlling stake.

Her father James Lebenthal, 78, will take the title—common in advertising but unusual for Wall Street-of creative director.  It was heavy TV advertising in the 1970s and 1980s featuring Mr. Lebenthal that gave the firm prominence in municipal-bond sales.

But the Lebenthals sold the firm for $25 million in 2001 to MONY Group Inc., where it became part of the Advest Group brokerage unit.  After French financial giant Axa SA acquired MONY for $1.5 billion in 2004, Axa sold Advest, including Lebenthal, to Merrill in 2005.  Merrill still has some remaining Lebenthal employees.  An Israel Discount, Ms. Lebenthal’s unit will focus on both municipal bonds and wealth management for families with net worth of $2 million to $20 million.  She plans to offer “family office” or “financial concierge” services.

Although Ms. Lebenthal sought to regain use of the Lebenthal name, Merrill refused because it was factored into the $400 million price tag for Advest.  Nevertheless, Mr. Lebenthal said, the new jobs mean “the Lebenthal family is back.” His daughter added: “We will always be the Lebenthals.”

Mr. Bronfman, 47, is a younger brother of Edgar Bronfman Jr. who is known for entertainment-industry investments such as his current stake in Warner Music Group Corp., where he is chairman and CEO.

The Bronfman-Schron group in February paid $300 million for a 26% stake, with an option on a further 25%, in Israel Discount.  Regulators approved the transfer after the bank agreed to pay $25 million to settle a money-laundering probe of its New York unit by the Manhattan District Attorney and the New York State Banking Department.

Ms. Lebenthal’s role as president at her former firm gave her ties to some of Wall Street’s top executives.  Bear Stearns CEO James Cayne worked for her grandmother at Lebenthal in the 1960s.  And John Mack, CEO of Morgan Stanley, said Lebenthal was his firm’s first clearing-services client.  “I wish I could have figured out a way she could have joined us,” Mr. Mach said of Ms. Lebenthal.