On Wall Street, Obama Calls for Tougher Rules, Consumer Watchdog Agency

A year after the collapse of Lehman Bros., President Obama is calling on Wall Street to accept proposals to close the regulatory loopholes that paved the way for the nation's economic meltdown, the biggest financial crisis in history.

While there has been some recovery, Obama used his speech at New York's Federal Hall this afternoon to urge Congress to pass his package of reforms to make sure the crisis does not happen again and to create a consumer-oriented agency to regulate financial products.

"That's why we need strong rules of the road to guard against the kind of systemic risks we have seen. And we have a responsibility to write and enforce these rules to protect consumers of financial products, taxpayers and our economy as a whole," Obama said. "Yes, these rules must be developed in a way that does not stifle innovation and enterprise. . . . And we want to work with the financial industry to achieve that end.

"But the old ways that led to this crisis cannot stand. And to the extent that some have so readily returned to them underscores the need for change and change now. History cannot be allowed to repeat itself."

Obama also told Wall Street not to count on sweet bailout deals from the federal government.

"And if taxpayers ever have to step in again to prevent a second Great Depression, the financial industry will have to pay the taxpayer back – every cent."