When the bank everyone considered "too big to fail" folded, the government stepped in. Congress ultimately directed $700-billion dollars to stabilize the system but the fallout continued.
15 million Americans are out of work, home values dropped by 15-percent, and the stock market is about 1,800 points lower than this time last year.
"Those on Wall Street cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall," said Obama.
The President wants stronger and more transparent financial regulations, and a new government agency to enforce the rules.
But he's calling for change just as a ABC News-Washington Post poll shows slipping job approval; 54-percent of Americans approve of Mr. Obama's work on the job; 43 percent do not. Congress seems hesitant to pass more banking regulations anytime soon.
"They have not changed anything fundamentally, and until they do the risk of another financial panic in our future is still very high," said Mark Zandi with Moody's Economy.com.
President Obama said he'd like to see new financial regulations in place by the end of the year, but industry lobbyists are already fighting key proposals.
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