Speaking to frequent bursts of applause at New York’s Cooper Union, President Obama this morning denounced the “furious activity” of lobbyists to gut financial reform measures passed last year in the House of Representatives and currently making their way through the Senate.
“I’m sure some of these lobbyists work for you, and I’m sure they’re doing what you’ve asked them to do. But I’m speaking to the captains of industry here, and I’m asking you to join us,” said Obama, arguing the reforms would be good for the financial industry, ultimately.
Back-room bailouts happened in 2008 because there weren’t proper tools in place to handle massive crises like the Lehman Brothers’s collapse, said Obama.
“The goal is to make certain taxpayers are never again on the hook because a firm is too big to fail.”
Obama denounced claims that the legislation was going to lead to future bailouts. “That’s a good soundbyte, but it’s not true.”
“The system as it stands led to massive bailouts. A vote for reform is a vote to put a stop to taxpayer-funded bailouts. And that’s the truth. End of story.”
Obama pointed to Paul Volcker, seated in the front row, citing the importance of the proposed Volcker Rule. “In the absence of clear rules and sound practices, people believed our system was not safe to invest in.”
Obama cheered Republican Senator Chuck Grassley’s announcement yesterday he’ll get behind the legislation.
“Unless your in the business of bilking people, you have little to fear from these reforms,” said Obama, after relating how a handful of institutions had taken risks that ended up harming individuals across the land.
Obama ended by citing a news headline.
“Bankers � ran in fear of a “monstrous legislation � that would rob them.”
“That headline ran in Time magazine in June of 1933,” Obama told the audience, to a rush of applause. “It was about the FDIC, which passed to protect investors.”
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