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