President Obama spoke about financial reform today from Cooper Union in New York City, where he urged “the titans of industry” to “to join us, instead of fighting us in this effort” to reform the financial system.
He began by noting that “we are seeing hopeful signs” about the economy’s recovery, and that “today America is adding jobs again.”
But, Obama said, the financial crisis “was born of a failure of responsibility,” and “it is essential that we learn the lessons from this crisis so that we don’t doom ourselves to repeat” them.
Though the President said he believes in the free market, “a free market was never meant to be a free license to take whatever you can get, however you can get it.”
He also addressed the Wall Street bankers who may object to reform. “I want to urge you to join us, instead of fighting us in this effort,” he said, adding later: “Unless your business model depends on bilking people, there’s little to fear from these new rules.”
“These reforms,” Obama said, “are designed to respect legitimate activities but prevent reckless risk taking.”
We do not have to choose between markets that are unfettered by even modest protections against crisis, and markets that are stymied by onerous rules that suppress enterprise and innovation.
The President got a round of laughter and applause when he cited a Time Magazine article about Wall Street anger and consternation over the creation of the FDIC in June 1933.
He concluded: “Ultimately there is no dividing line between Main Street and Wall Street. We will rise or we will fall together, as one nation.”
