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JP MORGAN EXEC: NO ONE INNOCENT

THE co-chief executive of JP Morgan&rsquo;s investment banking arm has blamed &ldquo;greedy bankers, investors and borrowers&rdquo; for the financial crisis.<br /><br />Bill Winters&rsquo; comments &ndash; which will be seen as an attack on Wall Street, the City and clients &ndash; were made earlier this week during a closed-doors debate at the Investment Management Association.<br /><br />City rainmaker Winters also blamed &ldquo;inept risk managers who relied on the ratings agencies&rdquo; for&nbsp; the near-collapse of the global financial system.<br /><br />A JP Morgan spokesman told City A.M.: &ldquo;He was in a debate arguing against a motion that the future regulation of financial services required&nbsp; the separation of retail and wholesale banks.&rdquo;<br /><br />Arguing against a reintroduction of the now-defunct Glass-Steagall act, Winters said: &ldquo;The crisis is about the collapse of the integrated wholesale banking system.&rdquo;<br /><br />He added: &ldquo;The primary culprit was a wholesale banking market where borrowing was made to the wrong people at the wrong price.&rdquo;<br /><br />Winters, notorious for his exceptionally low profile, is close to JP Morgan chief executive Jamie Dimon and is widely tipped to become his successor. <br /><br />He has retained his seat at the helm of the bank after demonstrating his ability to survive periods of turmoil. <br /><br />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&rsquo;s investment banking businesses.