Change And Cooperation Is Called For At The Obama Wall Street Address
As the financial reform bill is starting to make its way through Congress, President Obama went to Cooper Union College to speak, and the Obama Wall Street speech was full of requests for cooperation and change. He admonished Wall Street to not have cush a cavalier and insular attitude towards the economy, and he wanted the Volcker Rule put into action. Millions have run to money lenders or to the unemployment line because of Wall Street’s mismanagement.
Obama Wall Street address calls for reform
You can find a transcript on Reuters of the Obama Wall Street address. He asked for common sense reform and for lobbyists to knock it off. He also took Wall Street to task for being irresponsible. He suggested some specific reforms were needed: the public needs more insulation from too-big-to-fail firms, greater transparency, more consumer protections and greater controls for shareholders.
Volcker Rule
Part of the financial reform bill is the institution of the Volcker Rule. The rule is named for Paul Volcker, former Federal Reserve Chairman, and it prohibits banks from certain trades or actions not on the behest of its shareholders. Critics have declared regulations would stagnate industry growth, but Obama countered that “unless your business model depends on bilking people there is little to fear from these rules.” (From USA Today ).
Deriding and upholding bailouts
The Obama Wall Street speech included a justification and condemnation of bailouts. Doing nothing, the President maintained, would have been worse. He stressed that “the American people should never have been put in that position in the first place.” The idea that any further bailouts to Wall Street would be ok was flatly denied. The President clearly doesn’t want to give Wall Street another huge cash advance from the taxpayers.
The House passes financial reform bill
The House of Representatives just passed the financial reform bill, with a Senate version due soon, and both will likely contained reforms along the lines of the Obama Wall Street speech. Some Wall Street impresarios and Republicans have opposed it, and many believe it won’t deliver the necessary reforms.
Resources for the article
Reuters
http://www.reuters.com/article/idUSN2224964320100422
USA Today
http://content.usatoday.com/communities/theoval/post/2010/04/obama-to-wall-street-work-with-me/1
