Home | About Us | Contact Us | Site Map | Chinese
News | Biz | Pearl River Delta | Enjoy Life | Culture | Travelling | Pics | Cities & Towns | Gov Info | Specials
Home> NewsBrief>World
Obama pushes for financial regulation reform on Lehman collapse anniversary
Latest Updated at 2009-September-15 11:22:18
Related News
Obama presses for health care reform, says nation at "break point"
Obama: G20 must set path for sustainable growth
Obama calls for hard work in back-to-school speech
Obama reiterates to withdraw all troops from Iraq as scheduled
Medvedev, Obama agree to intensify work on new START treaty
Merkel, Steinmeier stage TV debate
Father of "green revolution" Norman Borlaug dies at 95
Japan launches 1st rocket to supply int'l space station
Top Chinese legislator meets U.S. president

Story Highlights

* Obama reiterated on Monday his plan to overhaul the financial regulation system.

* Obama recounted his plan to reshape financial regulation.

* Obama urged the U.S. Congress to pass the regulatory reform as soon as possible.

U.S. President Barack Obama, speaking one year after Lehman Brothers Holdings Inc.'s collapse, reiterated on Monday his plan to overhaul the financial regulation system and urged the Congress to pass the reform as soon as possible.

At Federal Hall, which is located on Wall Street and just across the New York Stock Exchange, Obama urged the financial industry to support his new financial rules and avoid a return to the practices of excessive risk taking. Obama also called for global coordination in financial oversight and protecting economic recovery.

Lehman, the fourth largest U.S. investment bank, filed for bankruptcy on Monday, Sept. 15, 2008, which triggered a financial crisis that spread around the world and resulted in more than 1.6 trillion USD in losses and write downs by financial institutions.

Addressing an audience consisting of his economic team, financial executives and consumer advocates, Obama said it was a "collective failure of responsibility in Washington, on Wall Street, and across America that led to the near-collapse of the financial system one year ago."

The president warned Wall Street that they "cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall."

"While there were many who took out loans they knew they couldn't afford, there were also millions of Americans who signed contracts they didn't fully understand offered by lenders who didn't always tell the truth," Obama said.

Obama promised the Consumer Financial Protection Agency, which his administration proposed to establish in June this year, will have the power to ensure that consumers get information that is clear and concise, and to prevent the worst kinds of abuses.

U.S. President Barack Obama speaks about the global financial crisis on Wall Street at Federal Hall in New York City Sept. 14, 2009. (Xinhua/Gu Xinrong)

"Consumers shouldn't have to worry about loan contracts designed to be unintelligible, hidden fees attached to their mortgages, and financial penalties -- whether through a credit card or debit card -- that appear without warning on their statements," Obama assured the audience inside the Federal Hall and in front of TV.

The government is also seeking ideas and input from industry leaders, policy experts, academics, consumer advocates and the broader public for "the most ambitious overhaul of the financial system since the Great Depression," said Obama.

Obama recounted his plan to reshape financial regulation, which he unveiled in mid-June this year. Under the new plan, the government will make the Fed a systemic risk regulator to oversee large institutions whose failure could threaten the stability of the entire system.

Obama said one of the main reasons this crisis could take place is that many agencies and regulators were responsible for oversight of individual financial firms and their subsidiaries, but no one was responsible for protecting the whole system.

"Regulators were charged with seeing the trees, but not the forest," the president said.

The reform also will create a council of regulators with broad coordination responsibility across the financial system. The council will discuss systemic risks but the Fed will not need its approval to act against them.

Hedge funds, derivatives and consumer mortgages, all blamed for the current crisis, will thus be under the supervision by the government.

And institutions that originate loans would be required to retain 5 percent of the credit risk when the loans are turned into securities.

Under existing rules, some financial companies can actually choose the regulator of their choice, while others like hedge funds can operate outside of the regulatory system altogether.

Obama urged the U.S. Congress to pass the regulatory reform as soon as possible. He stressed that it is important to note that the very absence of common-sense regulations able to keep up with a fast-paced financial sector is what created the need for that extraordinary intervention.

Obama also called for "coordinated response to promote recovery and to restore prosperity coordination" among key developed and emerging economies.

Next week, the Group of 20 Summit will be held in Pittsburgh and leaders will continue to work on their agreement in April London Summit in spurring global demand and addressing underlying problems that caused such a deep and lasting global recession.

Obama called the G20 Summit "an effective forum for coordinating policies among key developed and emerging economies."

"Essential to this effort is reforming what's broken in the global financial system -- a system that links economies and spreads both rewards and risks," Obama said.

Editor: Miranda

By: Source: China View website

16th Asian Games official "Mascots in Motion" unveiled

Air hostesses selection for 2010 Asian Games

Ancient Daling Village Resumes its Original State

Rail Transport Network to cover PRD

Pirates of the Caribbean 3 premieres in China
This site contains material from other media for content enrichment purpose only.
The website do not endorse such content and do not bear the joint responsibility of their copyright infringement.
The views expressed in written material posted to the bulletin boards of are those of the authors and/or publishers. The website does not endorse information products posted by organizations and individuals here. The originators of these information products are solely responsible for their content.
For copyright infringement issues, you shall contact within thirty (30) days. Email:
If you find any error in this page, please drag your mouse to mark the text with error, then press "CTRL" and "ENTER", to inform us. Thanks for your help!
Home  |  About Us  |   Contact Us  |  Site Map  |  Chinese
©2005 WWW.NEWSGD.COM. All rights reserved.registered number 020074 Terms of Use | Advertise | ICP Certificate No.B2-20050252
Guangdong Gov Link
Guangdong Gov Brief
State Structure
Guangdong in Brief
Laws & Regulations
Exchange Rate
Guangdong Guide
Museum Museum
University University
Eat Eat
Shopping Duting
Night Life Night Life
Weather Weather
Phone No. Phone Num
Consulate Consulate
Airport Airport
Travel Tips Tours Tips