JP MORGAN EXEC: NO ONE INNOCENT
THE co-chief executive of JP Morgan’s investment banking arm has blamed “greedy bankers, investors and borrowers” for the financial crisis.
Bill Winters’ comments – which will be seen as an attack on Wall Street, the City and clients – were made earlier this week during a closed-doors debate at the Investment Management Association.
City rainmaker Winters also blamed “inept risk managers who relied on the ratings agencies” for the near-collapse of the global financial system.
A JP Morgan spokesman told City PM: “He was in a debate arguing against a motion that the future regulation of financial services required the separation of retail and wholesale banks.”
Arguing against a reintroduction of the now-defunct Glass-Steagall act, Winters said: “The crisis is about the collapse of the integrated wholesale banking system.”
He added: “The primary culprit was a wholesale banking market where borrowing was made to the wrong people at the wrong price.”
Winters, notorious for his exceptionally low profile, is close to JP Morgan chief executive Jamie Dimon and is widely tipped to become his successor.
He has retained his seat at the helm of the bank after demonstrating his ability to survive periods of turmoil.
He joined the bank in 1983 upon graduation, and has since helped steer it through the merger of JP Morgan and Chase and the combining of JP Morgan and Cazenove’s investment banking businesses.