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Ex-CEO of JP Morgan admits Interest Rate Swap Mis-Selling

It is not just the High Street Banks that have been accused of Interest Rate Swap Mis-Selling

Bill Winters, the former co-chief executive officer of JPMorgan Chase & Co. (JPM)’s investment bank, said banks misled municipal officials into buying derivatives they didn’t understand.

Asked in an interview on PBS Frontline’s “Money, Power and Wall Street” if he held banks responsible for leading less sophisticated investors such as the Italian city of Cassino down the wrong path, he concurred.

“Because of the opaqueness of derivatives, it was probably easier to abuse in some cases,” said Winters, who left JPMorgan in 2009. “It obviously doesn’t cover the profession in glory.”

Cassino, an Italian town that entered an interest rate swap with Bear Stearns Cos. in 2003, was left with a 577,000-euro ($760,000) loss after reaching a settlement with JPMorgan, which bought Bear Stearns in 2008, according to documents obtained by Bloomberg News under a court ruling.

http://www.bloomberg.com/news/2012-05-03/winters-tells-pbs-banks-misled-cities-such-as-cassino-on-swaps.html

Nadia Patel

Nadia has a degree in Business Management and a Diploma for Financial Advisers (Level 4). She has ten years of experience in financial services. This includes FSA regulated adviser roles in HSBC, Halifax and Nationwide. As senior manager at Vedanta Nadia is responsible for managing the office, client contact and marketing for the business.

Nadia Patel

Nadia has a degree in Business Management and a Diploma for Financial Advisers (Level 4). She has ten years of experience in financial services. This includes FSA regulated adviser roles in HSBC, Halifax and Nationwide. As senior manager at Vedanta Nadia is responsible for managing the office, client contact and marketing for the business.