Obama Pushing for Action on Reform of Wall Street, Banking Practices

President Barack Obama urged supporters of sweeping financial system reforms to "remain strong" and push for greater scrutiny of abusive practices on on Wall, Street and in large banks, but he conceded Republican backing for a reform bill has faded and financial interests have launched a counter-offensive.

In his weekly address Saturday, the president complained that the same system that contributed to the loss of eight million jobs is still in place more than a year after a financial collapse that took a "terrible toll throughout the economy."

Obama is backing legislation introduced by Sen. Chris Dodd (R-Conn.) and set for action in Dodd's banking committee on Monday. Passage this year may be a tall order. Obama acknowledged that banks and consumer finance agencies have opened a multimillion ad campaign to defeat the legislation.

Dodd's bill would provide more oversight of the largest firms to avoid situations where failure at one institution could threaten the entire system; allow greater regulatory oversight of exotic financial products, such as derivatives, and give shareholders a say on executive salaries and bonuses.

It would also set up a new consumer bureau to prevent predatory loan practices and other abuses. Consumer protection is currently spread across seven federal agencies, the president said, "none of which has the interests of ordinary Americans as its principal concern."

"No one denies that reform is needed," Obama said. "So the question we have to ask is very simple: will we learn from this crisis, or will we condemn ourselves to repeat it? That's what's at stake. I urge those in the Senate who support these reforms to remain strong, to resist pressure from those who would preserve the status quo, to stand up for their constituents and our country."



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