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Financial giant JP Morgan Chase’s CEO Jamie Dimon recently wrote a lengthy letter to his company’s share holders. In it he asserted that the bank’s employees “have always been deeply committed to being good corporate citizens.” However, JP Morgan was just as deeply implicated in the sub-prime mortgage scandal as other big banks. But it was quicker to see the risks involved and sold off mortgage-backed securities soon after it bought them, leaving other banks with toxic assets. JP Morgan Chase was also instrumental in lobbying against financial regulation of the questionable practices. Now, the bank has been deeply implicated in paying middlemen to literally bribe county commissioners in Alabama to buy securities with rigged interest rates as exposed by Rolling Stone’s Matt Taibi. Simon Johnson, former chief economist at the IMF and co-author with James Kwak of the book, “Thirteen Bankers: The Wall Street Takeover and the Next Financial Meltdown” has called JP Morgan CEO Jamie Dimon, “The Most Dangerous Man in America.” Simon Johnson is a Professor at the MIT Sloan School of Management. He is a senior fellow at the Peterson Institute for International Economics in Washington Dc. He blogs at baselinescenario.com, as well as on the New York Times’ Economix Blog, and is the business editor for the Huffington Post.
GUEST: Simon Johnson, co-author with James Kwak of the book, Thirteen Bankers: The Wall Street Takeover and the Next Financial Meltdown, Professor at the MIT Sloan School of Management