President Barack Obama today called on the Business Roundtable to support his financial regulatory reform efforts.
“If we do not pass financial reform, we can expect more crises in the future,” Mr. Obama said in remarks prepared for delivery to round-table members — CEOS in corporate America. “But if we design the new rules carelessly, they could choke off the supply of capital to businesses.”
“Outdated financial regulations” is a key factor in “preventing our economy from reaching its full potential,” he said, noting “my goal is not to punish Wall Street. I believe that most folks in the financial sector are looking to make money in an honest, transparent way.
“But if there aren't rules in place to guard against the recklessness of a few, and (if) they are allowed to … take on excessive risk, it starts a race to the bottom that results in all of us losing.
“We cannot allow another AIG or another Lehman (Brothers) to happen again,” Mr. Obama added. “We can't allow financial institutions … to make gambles that threaten the whole economy. We must ensure consolidated supervision of all institutions that could pose a risk to the system. We must close loopholes that allow financial firms to evade oversight and circumvent rules of the road.”