April 17th, 2010
03:48 PM ET
5 years ago

Obama touts financial reform, says GOP stance 'deceptive'

(CNN) - President Obama touted financial regulation reform in the weekly White House address released Saturday.

"The consequences of this failure of responsibility – from Wall Street to Washington – are all around us: 8 million jobs lost, trillions in savings erased, countless dreams diminished or denied," Obama said. "I believe we have to do everything we can to ensure that no crisis like this ever happens again. That's why I'm fighting so hard to pass a set of Wall Street reforms and consumer protections."

But in an address largely devoted to laying out the components of financial reform legislation, Obama also accused Senate Minority Leader Mitch McConnell of deliberately misleading the public.

"[T]he Senate Republican Leader came out against the common-sense reforms we've proposed. In doing so, he made the cynical and deceptive assertion that reform would somehow enable future bailouts – when he knows that it would do just the opposite," Obama said.

Read the full remarks after the jump:

Remarks of President Barack Obama

As Prepared for Delivery

The White House

April 17, 2010

There were many causes of the turmoil that ripped through our economy over the past two years. But above all, this crisis was caused by failures in the financial industry. What is clear is that this crisis could have been avoided if Wall Street firms were more accountable, if financial dealings were more transparent, and if consumers and shareholders were given more information and authority to make decisions.

But that did not happen. And that's because special interests have waged a relentless campaign to thwart even basic, common-sense rules – rules to prevent abuse and protect consumers. In fact, the financial industry and its powerful lobby have opposed modest safeguards against the kinds of reckless risks and bad practices that led to this very crisis.

The consequences of this failure of responsibility – from Wall Street to Washington – are all around us: 8 million jobs lost, trillions in savings erased, countless dreams diminished or denied. I believe we have to do everything we can to ensure that no crisis like this ever happens again. That's why I'm fighting so hard to pass a set of Wall Street reforms and consumer protections. A plan for reform is currently moving through Congress.

Here's what this plan would do. First, it would enact the strongest consumer financial protections ever. It would put consumers back in the driver's seat by forcing big banks and credit card companies to provide clear, understandable information so that Americans can make financial decisions that work best for them.

Next, these reforms would bring new transparency to financial dealings. Part of what led to this crisis was firms like AIG and others making huge and risky bets – using things like derivatives – without accountability. Warren Buffett himself once described derivatives bought and sold with little oversight as "financial weapons of mass destruction." That's why through reform we'd help ensure that these kinds of complicated financial transactions take place on an open market. Because, ultimately, it is a marketplace that is open, free, and fair that will allow our economy to flourish.

We would also close loopholes to stop the kind of recklessness and irresponsibility we've seen. It's these loopholes that allowed executives to take risks that not only endangered their companies, but also our entire economy. And we're going to put in place new rules so that big banks and financial institutions will pay for the bad decisions they make – not taxpayers. Simply put, this means no more taxpayer bailouts. Never again will taxpayers be on the hook because a financial company is deemed "too big to fail."

Finally, these reforms hold Wall Street accountable by giving shareholders new power in the financial system. They'll get a say on pay: a vote on the salaries and bonuses awarded to top executives. And the SEC will ensure that shareholders have more power in corporate elections, so that investors and pension holders have a stronger voice in determining what happens with their life savings.

Now, unsurprisingly, these reforms have not exactly been welcomed by the people who profit from the status quo – as well their allies in Washington. This is probably why the special interests have spent a lot of time and money lobbying to kill or weaken the bill. Just the other day, in fact, the Leader of the Senate Republicans and the Chair of the Republican Senate campaign committee met with two dozen top Wall Street executives to talk about how to block progress on this issue.

Lo and behold, when he returned to Washington, the Senate Republican Leader came out against the common-sense reforms we've proposed. In doing so, he made the cynical and deceptive assertion that reform would somehow enable future bailouts – when he knows that it would do just the opposite. Every day we don't act, the same system that led to bailouts remains in place – with the exact same loopholes and the exact same liabilities. And if we don't change what led to the crisis, we'll doom ourselves to repeat it. That's the truth. Opposing reform will leave taxpayers on the hook if a crisis like this ever happens again.

So my hope is that we can put this kind of politics aside. My hope is that Democrats and Republicans can find common ground and move forward together. But this is certain: one way or another, we will move forward. This issue is too important. The costs of inaction are too great. We will hold Wall Street accountable. We will protect and empower consumers in our financial system. That's what reform is all about. That's what we're fighting for. And that's exactly what we're going to achieve.

Thank you.


Filed under: Mitch McConnell • Popular Posts • President Obama • Wall Street
soundoff (305 Responses)
  1. Pragmatic

    The committees start out working in a small "bipartisan" way ... the Democrats include some republican ideas ... then the GOP stalks out – pouting and whining about not getting 100% of what they want ...

    Then next day, they are loudly bashing the bill – especially the ideas the GOP inserted – blaming the Democrats! What is good for American doesn't seem to matter much anymore: always about GOP has to "win" and the Democrats "lose".

    April 17, 2010 04:10 pm at 4:10 pm |
  2. They call me "tater salad"

    Hey folks, just throw a coin in the tin cup and watch the little monkey (McConnell) dance!

    April 17, 2010 04:10 pm at 4:10 pm |
  3. Recalibrater

    This is what is meant by the pot calling the kettle black.

    April 17, 2010 04:12 pm at 4:12 pm |
  4. Limbaugh is a liberal

    The GOP is just using excuses to disguise the fact that they are in the pockets of Wall Street and don't want ANY reform whatsoever. It's exactly the same tactic they used with health care reform. Watch how in the next week the republicans come up with a 'sensible alternative' bill that'll be yet another laughable 3 page outline (cover page included) and over half of which is stolen from the Obama plan.

    April 17, 2010 04:12 pm at 4:12 pm |
  5. Peter E

    Republicans are being hypocritical in opposing regulation and reform (using the scare-tactic vocabulary of 'government takeover') WHILE they continue to criticize the government of not putting regulations in place to avoid further disaster. This is double-talk, hypocrisy, and red-faced lying. They are only interested in political maneuvering, purposely opposing any and all bills put forward by the government (and strongly supported by the public) and then whining and making false accusations that it was somehow the democrats who opposed reform and failed to produce a bill.
    I would like to see what the republican alternative is! They don't have any? Thought so! Typical...

    April 17, 2010 04:16 pm at 4:16 pm |
1 2 3 4 5 6 7 8 9 10 11 12 13