President Obama’s new chief of staff, Bill Daley has been greeted with cheers and jeers – from both sides of the aisle – for his strong business and banking ties.
To some, like Sen. Mitch McConnell, it’s a positive sign the President has taken more pro-business stance. To Simon Johnson, author of 13 Bankers and the former IMF chief economist, it’s a sign “the bankers have won completely.”
The fact that President Obama’s top aide is the former Midwest chairman of JPMorgan Chase proves “the White House fails to understand that, at the heart of our economy, we have a huge time-bomb,” according to Johnson. (See: Obama Shows His True colours … and They’re PRO-Business (Still)
Why is Daley’s appointment so troubling to Johnson?
“These banks again have unfettered access to the very top of the political decision making in the United States and, reflects the fact their status is completely undiminished, despite all the mistake they made and all the damage they did to the rest of the economy,” he tells Henry in this clip.
That time-bomb he was referring to is another credit and banking crisis. Without more reform and a break-up of the ‘too big to fail’ banks, which is even less likely with Daley as chief of staff, Johnson is convinced banks are destined to repeat the same mistakes. “They have every incentive” to “blow themselves up,” he laments, predicting another credit crisis will occur in the next three-to-seven years.