Obama Pushes for Financial System Regulations

September 14, 2009 12:00:00 AM PDT
President Obama went to Wall Street Monday on the first anniversary of the Lehman Brothers collapse. That event is largely seen as the beginning of Wall Street's big tumble. And though things have improved, the president says there is still more to be done. "One year ago, we saw in stark relief how markets can err; how a lack of common-sense rules can lead to an excess and abuse; how close we can come to the brink," said President Obama.

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.

      MORE POLITICS NEWS | TWEET@ABC30 | FREE ABC30 WIDGET
-----------------------------------------------------------------------------------------------
Sign up for Breaking News Alerts
Breaking News E-Mail Alerts | Text Message Alerts
-----------------------------------------------------------------------------------------------
More News on abc30.com
Local California/State | National/World | Weather | Entertainment | Business | | Sports | Health Watch | Consumer Watch | Mr. Food |
-----------------------------------------------------------------------------------------------


Load Comments