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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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By Frank Ahrens  |  September 14, 2009; 12:38 PM ET
Categories:  The Ticker  | Tags: FDIC, G-20, Lehman Brothers, Obama, regulation  
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Comments

I just heard Obama talk about not using scare tactics in a speech about health care. Ironically, he proceeded to attempt to scare people by telling them that they would most likely loose their insurance in the future...and need his plan.

Now, he's using scare tactics in the economical arena! I guess scare tactics are back on the table. Ergo, here's one forya: Pay attention to small business, as they employ 70% of Americans. How can anyone claim to be attempting to fixing the economy as they choke the life out of any business that is not owned by the government?

Posted by: nosam32 | September 14, 2009 2:20 PM | Report abuse

America is built on free enterprise and hard work. It is unfortunate that a culture of plunder and blunder has taken over in the past two or three decades and has become the new definition of capitalism. In the past we took a risk and reaped the rewards. Today we can build a resume by going to the right schools, doing right amount of volunteering and network the right connections and we can guarantee a rise up the corporate ladder and be rewarded millions of dollars in salaries and bonuses. AIG, Goldman and others have shown that if this new breed of capitalists make a profit it is theirs and if they make a loss US tax payers have to bail them. If anyone criticizes the new definition of capitalism they are called socialists. Our new definition of capitalism is in reality hampering creativity and dragging down our economy. During the traditional age of Capitalism we saw the entrepreneurs like Steve Jobs and Bill Gates start new ventures that not only changed and improved our country but they changed they world. As a person with potential starting out in their youth years in today’s USA, one has more incentive to try to rise up the corporate ladder than to build a new Microsoft or Apple. Unfortunately we have now built a Corporate Welfare State and as much as people don’t like to hear it we need to revamp our current salary and bonus structure in our public corporations. We need to reign in the salary and bonuses of top management to a multiple of average salary in a public corporation. We need to go back to our old fashioned definition of Capitalism where hard work and entrepreneurship was rewarded. Current American CEO and Management salaries are the highest in the world.

Posted by: lr1963 | September 14, 2009 2:44 PM | Report abuse

Obama`s message is hollow and falls short of reality.There are already mechanisms and regulations to corral reckless management or bludgeoning of the unwary investor.They have not been employed and the SEC under Cox is just one case in point.Fannie and Freddie are two other failed institutions that took the political yellow brick road and played major roles in the sub prime crisis.It galls me that Obama who has never managed even a hot dog stand is lecturing Wall Street under the guise of protecting us from those demonic devils of capitalism.We need job creation and a true economic stimulus,not a bellowing,blustering politician who sounds more like the village idiot than the alleged leader of the free world!

Posted by: bowspray | September 14, 2009 3:01 PM | Report abuse

Fear not oh great nation! With his own words he will be brought down!

Posted by: CS_GUY | September 14, 2009 3:17 PM | Report abuse

Maybe ACORN should be told to mend their ways

by indyvol[Sep 14, 2009 2:45:01 PM]
Where is our champion for change in Washington? He should be leading the call for an investigaion - he wasted precious little time in taking over the greedy wall street businesses, calling doctors crooks for doing unnecessary surgery, and calling out the 'evil" insurance industry and taxpayer revolutionaries. This is out and out corruption and yet Obama remains silent, as is the mainstream media. Why is he not enraged? How is he going to get those tremendous savings promised in his health care reform by eliminating fraud? With ACORN, he is actively supporting fraud. I wonder how involved ACORN is in giving advice to medicare and medicaid enrollees. Perhaps Obama should start there as a "test" program for Medicare/Medicaid reform. Mainstream media should be embarrassed that two young journalist brought this evil to light, and still the mainstreamers protect these criminals and thugs. Where is Pelossi who has called ACORN to town hall meetings to counter the "astro-turfers" and un-patriotic health care protestors who object to the government throwing away our money to crooks like ACORN.

Posted by: lucygirl1 | September 14, 2009 3:30 PM | Report abuse

Looks like the warning is going out to OBAMA and this CONGRESS ON BAILOUT,STIMULOUS, AND PORKULOUS.
The people said no remeber?
They meant it.

BEAR REVOLT was started by Veterans seeking to empower the active troops with a majority documentation of the majority's will of the people,
but was named whhen Pelosi went to THE BEAR REPUBLIC California , and threw imported ACORNS at their heads,
then called them astroturf , and walked on their backs with her spikey heels out the door , refusing to listen to them.

PETITION:

The REDRESS of the 2009 Federal Government of the United States of America
For NO CONFIDENCE
By the recall of :
The Congress, (all names listed both Partys)
The Hill , ( all names listed both Partys)
The Cabinet, (all names listed)
The Czars, ( all names listed)
Barack Hussein Obama ( all "currently" known names listed: Barack Hussein Soroeto, Barack Hussein Dunham )
The Republicans and the Democrats seated 2009 both are being recalled for No Confidence in the BEAR REVOLT clear documentation of the people's will in local County recordations offices, where an open ended Document can congeal all Petitions.

When pooled with other Countys, the people of the State can enter into the Library of Congress these "recorded documents" signed by all men, women, and children, who are victimized by the 2009 Federal Government, (instead of being represented), as the majority will of the people..

These Documents are a call for Redress of the 2009 Fed, for NO CONFIDENCE, by recalling them all
It accomplishes two tasks.

It shows eyes of the military sworn to uphold the US Constitution, a "well documented Majority will of the people", and it voids all of the signatures of this 2009 Fed.

It also allows the military to grant security, while a new emergency election is placed.

There will be no big war chests, or power torches in that election, and no droning on. It will be an elected group to serve the people from the people, and not above the people.

I would assume the local representatives only promise is to end insurance priviledge, and put those seated servants out in the public market to buy health care insurance just like us.

These representatives picked by the people will also , I assume, cut salaries to $10.00 per day for the Hill, Congress, the cabinet, and the POTUS , and end the illegal shadow government of CZARS forever.

The day of the career politician and corruption is over with the BEAR REVOLT demand for REDRESS by the people.

Posted by: dottydo | September 14, 2009 3:30 PM | Report abuse

For some people this President can’t even tie his shoes the right way to please them. They would rather we have another depression and have the whole country go bankrupt. What was said to day by Mr. Obama needed to be said. Bringing up the subject of ACORN has nothing to do with this particular subject. It’s like talking about someone’s unruly children when the subject matter is how high the price of health care will rise this year. A total disconnect. That’s what happens when people are focused on a single issue. In this case their focus is on the destruction of the President. It has not dawned on these Americans that he is the Commander and Chief of the whole country, not just the Democratic half. Focus people, focus! Your credibility is rapidly descending to the level of a mental patient obsessed with impressing Jodie Foster. Be careful, be very careful that in your haste to destroy this President you don’t end up destroying your own life. That is usually how a story motivated by this type of blind vitriol ends. You desperately lack wisdom.

Posted by: dhampton100 | September 14, 2009 3:43 PM | Report abuse

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