September 14th, 2009
01:07 PM ET
5 years ago

Fixing the financial rules: Slow going

WASHINGTON (CNNMoney.com) - Just a month after taking office, President Obama asked Congress to move fast to reform the "outdated" system of financial oversight and install "tough, new common-sense rules of the road" for Wall Street.

Now, as Obama gave a major address on Monday marking the one-year anniversary of the Lehman Brothers collapse, things haven't advanced very far.

Obama urged Congress to pass his proposed reforms.

"We have to live up to our responsibilities on financial reform," he said. "There will be those who argue we should do less or nothing at all. But
to them I'd say only this: Do you believe that the absence of sound regulation one year ago was good for the financial system? Do you believe the resulting decline in markets and wealth and employment was good for the economy? Or the American people?"

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soundoff (47 Responses)
  1. Farrell in Houston

    One day those who don't realize it already will recognize there is more to being president than just starting wars that don't feed into our economy but help destroy it. Millions spent on a war in Iraq and the only return we got was brave young men and women killed due to lies.

    September 14, 2009 02:00 pm at 2:00 pm |
  2. Brent

    If Republicans are involved....it's slow going.

    September 14, 2009 02:00 pm at 2:00 pm |
  3. ThinkAgain

    Reforms are very much needed. The reforms that FDR instituted helped pull our country out of the Great Depression and ushered in an unprecedented 40-year economic expansion.

    We need to go back to the days of reasonable regulation. It is not only naive, but as we've seen, very dangerous to our and the world's economy, if we fail to do so.

    September 14, 2009 02:01 pm at 2:01 pm |
  4. Jaxson

    I look for the Republicans to dig in their heels again. They are a bunch of nonproductive morons.

    September 14, 2009 02:02 pm at 2:02 pm |
  5. "outdated" system of financial oversight

    how about any oversight

    after Bush got done watering it down and making the SEC impotent the U.S. showed what happens with no checks and balances

    thank you Mr. Bush for our Financial system in turmoil

    September 14, 2009 02:03 pm at 2:03 pm |
  6. OLIVER

    If Republicans are involved, they won't be fixing anything. The GOP longs for the days of George Bush, greed and corruption.

    September 14, 2009 02:03 pm at 2:03 pm |
  7. Patricia Dickson

    Mr McCain rember that you are not on the campain trail anymore take your time please take it easy dont need to worry you did not win give the President your supportand let us all build back this country that was torn apart by your party if we all have faith and hold hands together we can do it, your behaviour is not nice at all i am watching you r speech and you are giving the President a hard time as if you could do better come on please drink acold glass of lemonade and quence your thrist pull up your sleeve and get ready to work with our President when it come to the conculsion of the whole matter the country need to rebuilt, and to rebuilt it its going to take democrat and the republician even through the democrat did not mess it up but we all of towork together to clean up this mess.

    September 14, 2009 02:08 pm at 2:08 pm |
  8. Ted Tartaglia

    Obama is on the right track about regulating the miscreants on Wall Street. The problem is that Wall Street is connected to many of the members of Congress, financially and ideologically, and the members of Congress are reluctant to kill the golden goose.

    In addition to financial reform, we really need Congressional reform. Too many members, on both sides of the isle, lack the morals and ethics necessary to represent the interests of the American people when those interests conflict with the Congressmembers own interests.

    September 14, 2009 02:10 pm at 2:10 pm |
  9. TCM

    I believe the American people trust Obama with the financial challenge about as much as they trust him with healthcare....ZIPPO!

    His dishonesty and lack of transparency are causing his supporters to come to the conservative side in droves.......and rightfully so; his anti-American agenda can turn the stomach of even the most gullable liberal...

    September 14, 2009 02:13 pm at 2:13 pm |
  10. rr

    The Cato Institute has a good article on the myth of deregulation and shows just how many pages of new regulations and how much money was spent on regulations over the past 8 years.

    Thanks to the bailouts, we now have 3 banks that control the vast majority of big loans and are thus too big to fail. Thanks, congress!

    September 14, 2009 02:14 pm at 2:14 pm |
  11. Bedtime for Obonzo

    This is known as a "strawman" argument. First, you set up a ridiculous opposing point of view of your own creation, then you argue against it. So let's plug in a different topic and hear Barry's words...

    "There will be those who argue we should do less or nothing at all [about child abuse]. But to them I'd say only this: Do you believe that the absence of sound regulation one year ago was good for [our kids]? Do you believe the resulting decline in markets and wealth and employment was good for the [children of this nation]? Or the American [parents]?"

    So it's his way or the highway, and if you disagree, you're an ogre.

    September 14, 2009 02:18 pm at 2:18 pm |
  12. Jefe

    There is literally a small group of people right now gathered in front of the Schaumburg post office on Schaumburg Rd in Illinois by a poster of President Obama with a "Hitler moustache". These people really have no clue what's what in politics. They call themselves Conservatives while supporting debt-and-spend presidents Reagan, Bush Sr, and Bush Jr. They call themselves Conservatives while supporting suppression of Constitutional freedoms and such Fascist legislation as the so-called PATRIOT Acts. They call themselves Conservatives while campaigning for foreign interventionist wars. In short, the people who call themselves conservatives today would make Hitler smile.

    September 14, 2009 02:19 pm at 2:19 pm |
  13. diridi

    just bring back manufacturing sector jobs...not construction...

    September 14, 2009 02:20 pm at 2:20 pm |
  14. ALEX

    Republicans don't want financial rules....they long for the days of George W. and his Republican cohorts. Reppublicans miss the greed and corruption. Oh those were the days!!!!

    September 14, 2009 02:25 pm at 2:25 pm |
  15. gtakamine

    The situation as I see it is.

    Washington has turned their eyes to a mafia like finacial system for too long. In order fuel two wars, constituent needs and personal gain our government has let the finacial giants do what they want as long as the cash was flowing into their hand with the justification of a free market and the promise of internal regulations.

    I feel all this talk of the recession coming to an end has slowed down progress, we as a nation will forget and slip back into the complaicent mindset that let these institution do what they please.

    September 14, 2009 02:25 pm at 2:25 pm |
  16. Hugo

    Have no fear America, the two most intelligent beings on our planet, Bill Clinton and Barack Obama will be dining out, at our expense I am sure, to entertain ideas on how to prolong the inevitable fall of our economic market. It seems that President Obama's most recent evidence of economic brilliance is the initiation of a tariff on tires from China, the Chinese response is to claim protectionism and place tariffs on chicken meat and auto parts, what brilliance! Why would anyone think that a bunch of career politician lawyers that have never done an honest days work in their lives would ever have a clue as to how the FREE MARKET works without the influence of Government interference? I am sure Clinton will tell Obama to sell China some more of our advanced technological secrets for some quick cash, fart and then ask for the salt!

    September 14, 2009 02:25 pm at 2:25 pm |
  17. seebofubar

    I strongly believe that the financial industry need increased regulation. What I don't believe is that Obama has any clue how to do it.

    September 14, 2009 02:28 pm at 2:28 pm |
  18. Ernie in LA

    It's going to be really slow with Obama trying to destroy us. The Right is Right and the Left is Wrong.

    September 14, 2009 02:29 pm at 2:29 pm |
  19. Franky

    You know, I'm not a big fan of enforcing new agencies regarding regulatory reform, let alone the SEC was created for that back in the day. I'd like to think that they do care and will do their job but let alone many agencies or compensations can only do so much. I think what's important is how structurally different and complex the system is, I think so. For starters, they have smart and bright people, that's one so I will give them a chance, I will but with some many anger among the people, is easy to forget how little is so much to know. No offense but right now, just right now, don't tell the American people how much you earn, trust me.

    Might have to come out with a better idea than just creating this or that. Remember, it was only 3+ years when Wall St was fine or an idiot, when you look at back but that's how you learn. Is easy to do that but is NOT easy to predict what we, Main Street people want, that I can promise you.

    September 14, 2009 02:48 pm at 2:48 pm |
  20. Dominican mama 4 Obama

    That rhetorical question will nonetheless be answered by those that just don't understand that no response is necessary.
    Financial oversights, and industry regulations need to be put in place in order to avoid another worldwide fiasco. I certainly appreciate the methodical way Barack is going about this. I think we're past the 'emergency mode' of this program.

    September 14, 2009 02:49 pm at 2:49 pm |
  21. Mark,B'ham,Al.

    The government will not enforce the new rules and laws like they need to. Look @ GE and their CEO Imelt doing an Enron but are they being investigated by the justice or the democrats? No, they helped get the President elected so they can not be bad people. We need to enforce all laws of this country not a select number on oly select people. Those who caused the economic problems are still in business or are still in political office and not held accountable.

    September 14, 2009 02:51 pm at 2:51 pm |
  22. ketrout

    EXCUSE ME!

    With the amount that Obama is spending and in a very short time period, IT WILL GET EVEN SLOWER!

    Only the banks and other financial companies are the only ones getting the money! We the American Taxpayers are the one getting shafted!

    IT'S GOING TO GET EVEN SLOWER!

    September 14, 2009 02:55 pm at 2:55 pm |
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