The President addresses Wall Street

story by AP
photo by Reuters


NEW YORK - President Barack Obama sternly warned Wall Street Monday against returning to the sort of reckless and unchecked behavior that threatened the nation with a second Great Depression.

Even as he noted the U.S. economy and financial system were pulling out of a downward spiral, Obama warned financial titans on the first anniversary of the Lehman Brothers collapse that they could not count on any more bailouts.

He credited his administration and the $787 billion stimulus package rammed through Congress in the first days of his taking office for pulling the country back from the brink.

“We can be confident that the storms of the past two years are beginning to break,” he said.
And even as the economy begins a “return to normalcy,” Obama said, “normalcy cannot lead to complacency.”

Nevertheless, Obama said, “Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them.”

His tough message warned the financial community to “hear my words: 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.”

Obama spoke at Federal Hall in the heart of Wall Street before an audience that included members of the financial community, lawmakers, and top administration officials. Afterwards, he joined former President Bill Clinton for lunch at a New York restaurant as the White House announced Obama would address the annual meeting of the Clinton Global Initiative Sept. 22 while in New York for the United Nations General Assembly meeting.

In marking his determination to prevent a repeat of the crisis that nearly brought down the global financial system last fall, Obama said he was attacking the problem on several broad fronts, including asking Congress to approve new rules to protect consumers and a new Consumer Financial Protection Agency to enforce those rules. He also called for the closure of regulator loopholes and overlap that “were at the heart of the crisis” because they left key officials without “the authority to take action.”