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Obama to Wall Street: ‘Do not block regulation’

September 15, 2009 by  

Obama to Wall Street: 'Do not block regulation'In a speech delivered in New York on Monday, and coinciding with the first anniversary of the collapse of investment bank Lehman Brothers, President Obama said regulation was urgently needed and he cautioned financial industry representatives not to try to block it.

Obama also struck a warning tone when he exhorted bankers from using the recovery to engage in "reckless behavior" that could lead to another financial meltdown, saying taxpayers were getting tired of bailouts.

"It is neither right nor responsible after you’ve recovered with the help of your government to shirk your obligation to the goal of wider recovery, a more stable system and a more broadly shared prosperity," Obama said, quoted by the Associated Press.

The president wants the financial sector reform bill ready by the end of the year, but industry groups as well as some Republicans have expressed worry about what regulation might bring.

"We must be wary of the reality that – in an attempt to address yesterday’s failures – Congress will put in place regulatory schemes which will fundamentally undermine risk taking," says Senator Judd Gregg, a New Hampshire Republican.

The collapse of Lehman Brothers was the largest bankruptcy in U.S. history and sent shockwaves through the financial system. It subsequently transpired that a number of financial organizations, including Citibank, Merrill Lynch and AIG, were on the brink of bankruptcy due to their exposure to the subprime mortgage market.

Ultimately, several rounds of multimillion dollar bailouts saved them from following in Lehman’s footsteps, but did not prevent the economy from falling into a deep recession.

Spencer Cameron

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  • s c

    So America’s financial system needs urgent regulation. Is this the same financial system that just couldn’t understand that Madoff was running a scam?
    Neither the SEC or nor the FBI could find any evidence of any misdeeds on the part of Madoff. Does that mean the SEC and the FBI need more power?
    Congress couldn’t bring itself to put Baaaney Fwank in his place, and force him to admit that Fannie and Freddie were in deep doodoo. It sure helps to have ‘fwends,’ doesn’t it, Baaaney?
    Yep, more regulation and more laws will definitely solve our financial problems. No doubt about it. People like Frank and a few czars will ‘help’ put America back together and on the right track. We just don’t have enough laws, do we? Or is it more a matter of no practical ways to force the government and its agencies to do the job? They sure know how to shift the blame, and distract the masses while protecting the guilty. What we really have, people, is a system where thieves and vermin are protecting criminals, and most of these slimers are elected. Once again, America gets hosed by those who are sworn to keep America safe.

    • Norm

      We saw what unbridled greed and stupidity can do when “free enterprise” is given unlimited power. With Madoff, the point isn’t that he didn’t get caught earlier, the point is that he was nasty and crooked enough to screw his clients, many of whom were his personal friends and fellow Jews.
      The trick of lending money to people with no repayment means almost destroyed the country. The taxpayers are now paying the price incurred by slimey mega millionaires who are still getting bonuses. When people can’t regulate themselves, and the US economy is at stake, you bet we need more government regulation.

      • JohnA

        More regulation IS NOT NEEDED!! What is needed is LESS GOVERNMENT INTERFERENCE with the FREE MARKET. Had the weak died and the strong survived, we’d be out of this mess by now. Government prolonged and is now driving deeper into and towards recession/depression. What’s hurting the current market are the small business owners cutting back or closing business, who’s bailing them out…. nobody!!

        And to allow the last card in the deck, Barney Frank, to do anything more would be a disaster. Get (vote) him and his friends out fast, then we can begin to recover this great nation again.

        Regulation at this level, just like healthcare, must be safely and slowly explored, test examples run and run and run, for this impacts all of us for multiple years to come.

        • FreedomSays

          The best 30 minutes you could invest this weekend.

        • Herman

          Rep.s Barney Franks, Maxine Waters and Greg Meeks should be indited and held responsible for their resistance to re-regulate Fannie and Freddy in 2004.

          This was a time when the corruption of these two GSE’s was already well known, yet they were the main obstructors to this last chance we had to avoid the financial crash.

          They placed the financial sources (Fannie and Freddy) for their next campaign above the welfare of the nation.

          • eyeswideopen

            If you think Frannie and Freddie were the only reasons we almost bit the dust you are mistaken and need to check out how we are intwined with the world economy and how our companies who rated the drivatives and mortgage bundles were committing fraud everytime they rated one AAA. If it had been just one thing don’t you think President Bush could have stopped it earlier? Come on, it was years of greed combined with lying cheating officials, both private and government who reaped the rewards of lack regulations/no regulations and the small time investor was the one who lost the most proportionally.

          • eyeswideopen

            How about holding the chairman of the SEC and the Federal Reserve accountable? Oh that’s right they were Republicans, and we don’t ever hold our own accoutable do we?

        • eyeswideopen

          Can you say DEPRESSION?

    • eyeswideopen

      Well, the financial systems were functioning pretty well, until we de-regulated them in 1999. They had protected the innocent investor since the Great Depression. In 1983 Congress repealed the Savings and Loan regulations which caused the failure of the industry. It cost us 283 billion dollars. We had just finished paying that off, when in 1999 Congress killed the Glas-Stegal Act, deregulating the Banking industry and look what we got!!! If you think that humans can control themselves when money is involved you are pretty naive. Greed is a powerfull driving force, which never is restrained without laws. Yes, we have many laws which we need to review and modifiy, but do you think that personal ethics really will keep people honest when dealing with billions of dollars? Isn’t greed considered one of the 7 sins?

      • DaveH

        Maureen? I guess you didn’t read this one last time I posted it for you. My guess is that you’re afraid to learn:

        • eyeswideopen

          I’m reading Michel Chossudovsky, instead of a Republicans view point OR a Democrats. Look him up, maybe you too will learn something. He wants to prevent the New World Order.

    • Vic Bailey, Auburn, Georgia

      How long is the American people going to let Bama and his goon squad keep lying and stealing from your kids and grandkids? Somebody needs to call their hand and put them on an island that is surrounded by water that has no ships or planes where they could get back. Pelosi would love it there with Bama. Then they would realize that they are not better than the average American. They ALL have lost touch with Reality!!!

  • eyeswideopen

    Billionaire blue blood Finn Caspersen, the former head of giant consumer lender Beneficial Corp., as a major Republican Party fundraiser, as a former Florida town commissioner in millionaire-laden Jupiter Island, where he lived, and as one of New Jersey’s best-connected power brokers-Caspersen still could not quite evade the tax man. Caspersen owed up to 100 million in taxes and fines and faced prision. Committed suicide 10 days ago. He got swept up in the high profile federal crackdown of off-shore bank accounts used by wealthy Americans. IRS connected Caspersen to an account at the private bank LGT. This article in yesterdays newspaper here in Fl.
    As you can see the overly greedy, are still making news. If it wasn’t for the UBS investigation, Caspersen would not have been exposed and his personal ethics didn’t have him coming forward to admit his philosophy of making money here in the US and hiding it to avoid taxes in another country. Yes, we need regulations!!

    • DaveH

      I see you still haven’t read any books by Thomas Sowell, Milton Friedman, or Ludwig Von Mises. Get some education, Eyes, and take off those green-colored glasses.
      Regulations play right into the hands of the biggest baddest conglomerates. They can afford the cadre of lawyers and accountants to wade through the Big Government bullcrap. Their smaller competitors can’t.

      • eyeswideopen

        Dave, instead of buying into the Republican Anthony Randazzo, I have been reading what Michel Chossudovsky an Canadian( who has no skin in this fight) is saying about what went wrong. We can’t trust anyone who has a political affiliation here in the states. They write with one eye on their party. I want independent views. So, no, I don’t necessarily believe your go to guy Anthony. I just don’t blindly follow someone, I quit doing that in 2001.

  • Mark E

    I am probably a simpleton in the worst sense when it comes to enforcing laws to identify the law breakers. We need fewer laws, fewer places for loopholes, and to staunchly enforce those we have.

    We need basic school(maybe even taught by parents at home) courses in personal responsibility. Promise of great investment returns are either a fallacy or to be viewed skeptically. Much like we want to blame the mortgage companies for all the default home loans, how about the mortgagee that thinks he can handle a $3000/ mo mortgage when he makes $30,000 per year.

    And… greed is not good.

    Mark E.

  • charlie

    Barney Frank has done a lot of damage to this country, from what i see he lead deregulation of financial institutions. i do not understand why he is on a financial committe let alone leading it. He has not made any decisions in his life that seems good. If i were from massachusetts i would be embarrased to have him as a rep.
    Now Obama is saying we need more regulation? look at the historical stock charts for the past 5 years (nasdaq as example). 2007 to early 2008 was at a high. In september 2008 the dip started and hit a low in march 2008. I suspect that Obama running for president caused investors to pull out of american stocks.

  • Larry

    If they do try to block it, Is he going to put them on his hit list, or send out his own personal malitia to arrest them?

  • Larry

    With the administration that’s in there, I wouldn’t put any stock at all in our government. They’re all liars and thieves and control freaks.

  • 22popuser

    ON 9/24 The G-20 and Puppet Obama, globalists all, will be unconstitutionally conspiring in SECRET with the IMF and the World Central Bank; To further entangle the U S and eliminate our INDEPENDENCE; To promote more economically destructive free trade and climate change carbon tax legislation; The intende to abridge the RIGHT of Free Speech and Assembly by restricting outraged citizens to distant designated holding pens. Google home G20


    Is it obvious enough to all yet, that this administration is following the 1930′s FDR playbook for disaster and a major conflict?

    Take a close look at the agenda, the incidents and the course of action that has taken place to date and tell me I’m off base…..

  • Keith H

    If you look at who will benefit from this regulation scam, it won’t be the american people. Every tragic event that happens, whether it’s a terrorist attack or a economic colapse, they always use it to take away our liberties or to enforce more control or regulatory schemes on us.We also know that wars and economic crashes are manufactured for that purpose. The american people never seem to learn our lesson, they keep hoodwinking us.

    • DaveH

      That’s right Keith. The 2/3 majority of ultra-rich people that voted for Obama are probably busily working behind the scenes to help Obama craft regulations that will stifle their competitors.

      • eyeswideopen

        Well they screwed up in Fl. as we now have only one voting machine company who has control in 65 of our 67 counties. It just happens to be a Republican owned and controled company. But no fear, we know there is never any dishonesty when it comes to voting….Right?

      • eyeswideopen

        Dave, Warren Buffett says “the rich need to pay higher taxes”

  • DaveH

    Yeah right. First he bails out the screw-ups so they can continue to compete with the companies that did it right, and now he wants to further hobble them all with more government intervention. Has anybody heard of Sarbanes-Oxley? It didn’t work did it? For those who are going to say “but deregulation was the problem!”:

    When are we going to get somebody to regulate the regulators? Better yet, get them out of the market place.

  • DaveH

    We need to address the real drain on our economy, i.e. Big Government. We need to, at the very least, kick most of the incumbents out of office. We need to replace them with politicians that promise to cut the size of government dramatically (and put those public workers back to doing real work).
    The only party that I know takes that stand right now is the Libertarian Party:

    But if you can find Republicans or Democrats that promise to work in that direction then vote for them. Then ride herd on them to make sure they keep their promises. In this age of the Internet, that is relatively easy to do, unless Obama’s crew finds a way to censor the Internet.
    There are a few incumbents that work for Limited Government, such as Ron Paul. So let’s keep them.

  • DaveH
  • DAllen

    Hmmmmmmmmmmmmm “A More Broadly SHARED Prosperity”………….Sounds like SOCIALISM to me……………..

  • DaveH

    This is unbelievable. From an Obama speech:
    “We are the only nation on earth that leaves millions of people without healthcare.”

    We are supposed to believe a word this guy says?

  • greyhawk

    And, what Obama is not saying is the fact the He and Others of His Ilk, with the aid of Domestic Terrorist Group such as ACORN, were the very one’s who Pushed the Community Re-Investment Act, put into play by Jimmy Carter, that forced hundreds of billions in loans on banks to Deadbeats Who Could Not Pay Mortgages and then kept passing the Worthless Mortgages up the chain and into the Lap of Taxpayers. It was government Interventions, Laws and lack of Regulations and Lax Lending Policies pushed by the Left that lead to the Melt Down. Sound banking and lending policies is how banks thrive and survive. The failed institutions should have failed with No Tax Payer Bailouts Period. Yes, there was some Greed and Corruption, but it was made possible by Insane Lending Policies that were Unleashed by the CRA, and you can thank Jimmy Carter, Groups Such as ACORN, who had Lawyers and Trainers such as Barack Obama, who lead to this mess, and now, we are supposed to listen to this Incompetent Radical to tell us how to clean it up. This is akin to Calling Out an Arsonist Squad to put out a Forest Fire that they Started to Begin With.

  • Kim Rozell

    I think we need to add one new law to the books. Before anyone in Washington can take office they have to take a 90 day concentrated course in Economics, Business Admin, and Finance. All branches, no exceptions!

    • eyeswideopen

      Kim, how about just a simple test to see if they know what is in the bill they are signing. My neighbors 11 yr old, asked why we let them sign stuff they don’t know about? Good question I said. She then proposed that we give them a test. She also said half our problems would be solved with a line item veto she learned about in school. Out of the mouths of babes!!!

  • gunvault

    I follow your blog for quite a long time and should tell that your articles always prove to be of a high value and quality for readers.


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