Obama To Wall Street: It's Time To Mend Your Ways
UPDATED at 12:38 p.m. with reaction:
Here are some highlights of President Obama's speech to Wall Street, which concluded moments ago:
-- "...banks have repaid more than $70 billion, and in those cases where the government’s stake has been sold completely, taxpayers have actually earned a 17-percent return on their investment."
-- "We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses. 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."
-- REACT: Obama said: "I’ve always been a strong believer in the power of the free market," a statement that elicited groans from some traders on the floor of the NYSE, CNBC reported.
-- Calls for the creation of a new Consumer Financial Protection Agency that would work to make big banks' fine print a little clearer for consumers.
-- Calls for the creation of an oversight council of regulators of various sectors of the financial markets to share information and work to prevent systemic failure.
-- Calls for the creation of a wind-down authority for big financial institutions like Lehman Brothers and AIG similar to what the FDIC has for traditional banks.
-- Calls for closing international banking loopholes, an item that will be on the table when the G-20 meets in Pittsburgh later this month.
-- Concludes: "One year ago, we saw in stark relief how markets can err; how a lack of common-sense rules can lead to excess and abuse; how close we can come to the brink. One year later, it is incumbent on us to put in place those reforms that will prevent this kind of crisis from ever happening again; that reflect the painful but important lessons we’ve learned; and that will help us move from a period of recklessness and crisis to one of responsibility and prosperity. That is what we must do."
-- REACT: The speech elicited only one round of applause, and that was when Obama proposed creating the Consumer Financial Protection Agency. Otherwise, the reaction was stony silence.
-- Frank Ahrens
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September 14, 2009; 12:38 PM ET
Categories: The Ticker | Tags: FDIC, G-20, Lehman Brothers, Obama, regulation
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