As we reform our regulatory system at home, we must work with international arrangements like the Basel Committee on Banking Supervision, the International Accounting Standards Board, and the Financial Stability Forum to address the same problems abroad. The goal must be ensuring that financial institutions around the world are subject to similar rules of the road – both to make the system stable, and to keep our financial institutions competitive.
Third, we need to streamline a framework of overlapping and competing regulatory agencies. Reshuffling bureaucracies should not be an end in itself. But the large, complex institutions that dominate the financial landscape do not fit into categories created decades ago. Different institutions compete in multiple markets – our regulatory system should not pretend otherwise. A streamlined system will provide better oversight, and be less costly for regulated institutions.
Fourth, we need to regulate institutions for what they do, not what they are. Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies. It makes no sense for the Fed to tighten mortgage guidelines for banks when two-thirds of subprime mortgages don’t originate from banks. This regulatory framework has failed to protect homeowners, and it is now clear that it made no sense for our financial system. When it comes to protecting the American people, it should make no difference what kind of institution they are dealing with.
Fifth, we must remain vigilant and crack down on trading activity that crosses the line to market manipulation. Reports have circulated in recent days that some traders may have intentionally spread rumors that Bear Stearns was in financial distress while making market bets against the company. The SEC should investigate and punish this kind of market manipulation, and report its conclusions to Congress.
Sixth, we need a process that identifies systemic risks to the financial system. Too often, we deal with threats to the financial system that weren’t anticipated by regulators. That’s why we should create a financial market oversight commission, which would meet regularly and provide advice to the President, Congress, and regulators on the state of our financial markets and the risks that face them. These expert views could help anticipate risks before they erupt into a crisis.
These six principles should guide the legal reforms needed to establish a 21st century regulatory system. But the change we need goes beyond laws and regulation – we need a shift in the cultures of our financial institutions and our regulatory agencies.
Financial institutions must do a better job at managing risks. There is something wrong when boards of directors or senior managers don’t understand the implications of the risks assumed by their own institutions. It’s time to realign incentives and compensation packages, so that both high level executives and employees better serve the interests of shareholders. And it’s time to confront the risks that come with excessive complexity. Even the best government regulation cannot fully substitute for internal risk management.
For supervisory agencies, oversight must keep pace with innovation. As the subprime crisis unfolded, tough questions about new and complex financial instruments were not asked. As a result, the public interest was not protected. We do American business – and the American people – no favors when we turn a blind eye to excessive leverage and dangerous risks.
Finally, the American people must be able to trust that their government is looking out for all of us – not just those who donate to political campaigns. I fought in the Senate for the most extensive ethics reform since Watergate. I have refused contributions from federal lobbyists and PACs. And I have laid out far-reaching plans that I intend to sign into law as President to bring transparency to government, and to end the revolving door between industries and the federal agencies that oversee them.
Once we deal with the immediate crisis in housing and strengthen the regulatory system governing our financial markets, our final task is to restore a sense of opportunity for all Americans.
The bedrock of our economic success is the American Dream. It's a dream shared in big cities and small towns; across races, regions and religions – that if you work hard, you can support a family; that if you get sick, there will be health care you can afford; that you can retire with the dignity and security and respect that you have earned; that your kids can get a good education, and young people can go to college even if they're not rich. That is our common hope across this country. That is the American Dream.
But today, for far too many Americans, this dream is slipping away. Wall Street has been gripped by increasing gloom over the last nine months. But for many American families, the economy has effectively been in recession for the past seven years. We have just come through the first sustained period of economic growth since World War II that was not accompanied by a growth in incomes for typical families. Americans are working harder for less. Costs are rising, and it’s not clear that we’ll leave a legacy of opportunity to our children and grandchildren.
That’s why, throughout this campaign, I’ve put forward a series of proposals that will foster economic growth from the bottom up, and not just from the top down. That’s why the last time I spoke on the economy here in New York, I talked about the need to put the policies of George W. Bush behind us – policies that have essentially said to the American people: “you are on your own”; because we need to pursue policies that once again recognize that we are in this together.
This starts with providing a stimulus that will reach the most vulnerable Americans, including immediate relief to areas hardest hit by the housing crisis, and a significant extension of unemployment insurance for those who are out of work. If we can extend a hand to banks on Wall Street, we can extend a hand to Americans who are struggling.
Beyond these short term measures, as President I will be committed to putting the American Dream on a firmer footing. To reward work and make retirement secure, we’ll provide an income tax cut of up to $1000 for a working family, and eliminate income taxes altogether for any retiree making less than $50,000 per year. To make health care affordable for all Americans, we’ll cut costs and provide coverage to all who need it. To put more Americans to work, we’ll create millions of new Green Jobs and invest in rebuilding our nation’s infrastructure. To extend opportunity, we’ll invest in our schools and our teachers, and make college affordable for every American. And to ensure that America stays on the cutting edge, we’ll expand broadband access, expand funding for basic scientific research, and pass comprehensive immigration reform so that we continue to attract the best and the brightest to our shores.
I know that making these changes won’t be easy. I will not pretend that this will come without cost, though I have presented ways we can achieve these changes in a fiscally responsible way. I know that we’ll have to overcome our doubts and divisions and the determined opposition of powerful special interests before we can truly advance opportunity and prosperity for all Americans.
"we need to address not only the immediate crisis in the housing market; we also need to create a 21st century regulatory framework, and pursue a bold opportunity agenda for the American people. "
This guy can talk ALL day long and say absolutely nothing. Standing on your head and talking about regulation will not eliminate the FED or remove the stranglehold that the globalists have on us. This "bold opportunity agenda" will it bring back our factories from overseas ? Much will be said this election season but absolutely NOTHING will change, for the better that is.
by
john riggs (0 articles, 0 quicklinks, 0 diaries, 324 comments)
on Thursday, March 27, 2008 at 11:26:48 AM
For an economy that has never been based on anything but faith and hope, this guy seems able to provide those two ingredients. What more can a sane person ask for?
by
Daniel Geery (26 articles, 55 quicklinks, 121 diaries, 653 comments)
on Friday, March 28, 2008 at 10:09:40 AM
Did read the artical completely? things like this are more t
Did read the artical completely? things like this are more than blah, blah, blah from a guy who could well be the next president.
"Beyond these short term measures, as President I will be committed to putting the American Dream on a firmer footing. To reward work and make retirement secure, we’ll provide an income tax cut of up to $1000 for a working family, and eliminate income taxes altogether for any retiree making less than $50,000 per year. To make health care affordable for all Americans, we’ll cut costs and provide coverage to all who need it. To put more Americans to work, we’ll create millions of new Green Jobs and invest in rebuilding our nation’s infrastructure. To extend opportunity, we’ll invest in our schools and our teachers, and make college affordable for every American. And to ensure that America stays on the cutting edge, we’ll expand broadband access, expand funding for basic scientific research, and pass comprehensive immigration reform so that we continue to attract the best and the brightest to our shores."
by
ALONE (112 articles, 1 quicklinks, 4 diaries, 242 comments)
on Friday, March 28, 2008 at 11:12:44 AM
I do have to admit--Paul krugman wasn't impressed either
I do have to admit--Paul krugman wasn't impressed either
click here Krugman says that only Clinton, by offering to revive a NEW DEAL era program to aid homeowners whose debt is higher than the value on their homes, has offered anything substantial to what McCain and Obama have offered. (However, her hubbies close relationship to financial sector is troubling.)
by
ALONE (112 articles, 1 quicklinks, 4 diaries, 242 comments)
on Friday, March 28, 2008 at 11:36:20 AM
I am very disapointed in this speech. I think it does nothing for his credibility.
YOYO AND WIITH or what ever it is called is catchy but it has no milage at helping the people caught in foreclosure.
At least Bush thtew pennies at us in the form of a tax stimulus package. Woefully stingy funding probably borrowed from the Chinese. But it was concrete. Obama fives us an catchy words
All this speech did was help McCain. How disappointing.
siriusss
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siriusss (4 articles, 3 quicklinks, 1 diaries, 72 comments)
on Thursday, March 27, 2008 at 11:44:51 AM
"Deregulation of the telecommunications sector, for example, fostered competition but also contributed to massive over-investment. Partial deregulation of the electricity sector enabled market manipulation. Companies like Enron and WorldCom took advantage of the new regulatory environment to push the envelope, pump up earnings, disguise losses and otherwise engage in accounting fraud to make their profits look better – a practice that led investors to question the balance sheet of all companies, and severely damaged public trust in capital markets. This was not the invisible hand at work. Instead, it was the hand of industry lobbyists tilting the playing field in Washington, an accounting industry that had developed powerful conflicts of interest, and a financial sector that fueled over-investment. "
THIS IS BLAH BLAH BLAH???? It is the best analysis of the reason we have a stock market crash, in a few words, that I have ever read. It is clear, concise and full of meaning. It points the way to a solution. The whole speech is like that. Those who think Obama just talks apparently never finished the 6th grade. Obama is one of the most brilliant men in America, and as he said (paraphrasing) if we continue to vote for alcohol sodden retxxds like Bush and McCain, nothing will ever change.
by
Antonio (0 articles, 0 quicklinks, 0 diaries, 63 comments)
on Thursday, March 27, 2008 at 12:35:02 PM
Even an eighth grade graduate like myself can see that printing money will never fix this economy. Hard money is ALL our constitution allows. The privately owned FED privately owns ALL the three candidates. Obama is dubya with a little brains, making him even more dangerous. If You wish to fall for more demo lies be my guest, but dont ask me to believe this snake-oil salesman. The only change that will save us is silver and gold, not more hot air from a professional politician (read professional liar).
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john riggs (0 articles, 0 quicklinks, 0 diaries, 324 comments)
on Thursday, March 27, 2008 at 1:41:04 PM
Just what America needs more regulation on utilities.
With Obama in charge there will be Dark days ahead both figuratively and literally. With his plan to hand out money to the Blacks and his re-regulation of electricity (price), the dollar will no longer have any value and even if it did there would still be no electricity when he is done.
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Gallaher (2 articles, 0 quicklinks, 2 diaries, 462 comments)
on Thursday, March 27, 2008 at 2:12:17 PM
Wow! Why George Dubya didn't snatch up a bigoted, race baiting fear monger like you to be on his "TEAM" I'll never know!!!! Just a little wake up call, "Blacks" aren't the only ones suffering in this economy that need a "hand-out" as you put it. But maybe you're so busy planning the next klan rally hate fest you haven't noticed.
by
enid dennis (1 articles, 0 quicklinks, 0 diaries, 4 comments)
on Thursday, March 27, 2008 at 8:19:35 PM
And have you forgotten about Enron ??? "The Smartest Guys in the Room" Guess you never heard of public goods, Mr. Reactionary Right Winger... or the public good for that matter.
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macdon1 (0 articles, 0 quicklinks, 0 diaries, 68 comments)
on Thursday, March 27, 2008 at 9:07:26 PM
Rural electrification program of 1930s 1940s and 1950s
Rural electrification was run much better and was more helpful than any big NATIONAL SECURITY PATRIOT office created in the last few years.
Don't paint all regulators and federally financed electrical firms with the same paint and brush.
What I read in the speech states that he wants an enforcing oversight office--no simply more burocracy as Bush/Cheney love to build at taxpayers expense
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ALONE (112 articles, 1 quicklinks, 4 diaries, 242 comments)
on Friday, March 28, 2008 at 11:25:38 AM
Come on, the media beats on him as though he were a red-headed step- child. What do they have to fear? I mean, Hillary and her republicans just hammer him on about everything.
He does answer the questions at hand unlike the repubs that dance around and dodge the answers.
And, another chunk of ?Antartica broke off, size of Rhode Island. To think DC could be under water. Make them provide their own wet suits like our soldiers had to do with body armour in the beginning of the Iraq "quagmire". Attn Congress & Execu.: if you go under water, call "Brownie". heh heh heh heh heh.
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shirley reese (0 articles, 0 quicklinks, 0 diaries, 198 comments)
on Thursday, March 27, 2008 at 12:51:06 PM
Mr. Obama is superb. As a macro-economist, his knowledge could be placed in a match box and have room to stretch out.
The U.S. currently has $99.2 trillion in unfunded debt that is growing daily. Our total GDP (including government spending) is $14 trillion and shrinking.
The first of America's boomers are now drawing money from the pay window for social security, and in 3 years from Medicare. That is a line that is 17 years long and 78 million deep.
Medicare will begin taking in less money than it pays out; this year!
I'm waiting for Mr. Obama to tell me how these problems will be fixed in his next flowery speech. I'm sure it will start, "Can't we all get along." NO.
by
Mike Folkerth (97 articles, 0 quicklinks, 2 diaries, 464 comments)
on Thursday, March 27, 2008 at 1:14:04 PM
Don't blaim Obama for the misspending of this and past
Obama--I am not necessarily voting for him--did not make 0.00000000001% oof this problem. If he did, his share is nothing compared to those who have allowed the federal government to hide debt and borrowing for foreign wars etc. in the trillions.
The money payers have put in social security will last till 2042. The sins of this administration will bus us before then.
What about the guy who had his house foreclosed on?
What about the single mother who saw her job shipped over seas?
What does the "Basel Committee on Banking Supervision, the International Accounting Standards Board, and the Financial Stability Forum " have to do with them?
Can they take regulation of the telecom industry to the bank to renegotiate the terms of their mortgage ?
Who was it that Obama was directing his speech to?
He may have the perfect grasp of what happened to the world economies but he has NO grasp of what people need in their everyday life to survive this ecomonic crash!
I don't give any of them a break on this. Not Hillary Not John McCain and certainly not Obama.
The American people don't need to give any one running a break. We need solid answers . Someone needs to give US a break!
Americans don't need another elitist leader who does not understand what life is like living pay check to pay check
siriusss
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siriusss (4 articles, 3 quicklinks, 1 diaries, 72 comments)
on Thursday, March 27, 2008 at 1:31:52 PM
What the heck, I'll say something although it won't make any difference. As long as our goverrnments(Federal, State, Local) continue to increase their cost and power, our economy and quality of life will continue to deteriorate.
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E J Antunez (0 articles, 0 quicklinks, 0 diaries, 9 comments)
on Thursday, March 27, 2008 at 1:48:39 PM
Please note, there must be a pause between every three to five words for effect.
After his intro.
Hello America… there is hope…There will be change…
I took... a walk... today… ... I’ve seen… the cracks… in the side walk… ...I’ve seen… the street signs… that are leaning… ....When I got… to the end… of my road… ...I saw… the next street… had... no side walk… So, I… walked… on the curb… And as... I walked… on the curb… ...I noticed… it had cracks… When I got… to the end… of that road… The… next road… did not… have a curb… I continued… to walk… until… I came… to a sign… that said… I... could not... walk... ...NO PEDESTRIANS… it said…
Pause as the croud goes wild. Make sure your supporters are up front and start the cheer when you don't speek for more than two seconds no mater what you say.
There… is hope… There will… be change…
So, now we will have people walking up and down our nations freeways getting slaughtered when hit by cars doing 70mph.
Yea, Thanks Obama, Thanks for the great speech.
by
Gallaher (2 articles, 0 quicklinks, 2 diaries, 462 comments)
on Thursday, March 27, 2008 at 2:46:16 PM
If you folks are going to give up on social improvement so easily maybe you should just take your semi auto and go play russian roulett. This was a pretty good speech. It was still a campaign speech, thats where we are. If we were willing to elect somebody who was going to promise to abolish the Fed and take on the international banking cartel we would have nominated Ron Paul or Mike Gravel, and might even be looking at a corpse. Anybody who promises to modernize regulation (can't live with it, can't live without it) and try to stimulate job creation while trying to create class equity in taxation has my attention. Will we undo 30 + years of sick thinking in one presidential term? Of couse not. But start somewhere or go home. If you still have one.
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Torus (0 articles, 0 quicklinks, 0 diaries, 9 comments)
on Thursday, March 27, 2008 at 6:19:07 PM
This hack speech should erase any doubts about who Obama will be running errands for.
Barack Obama on the dole:
Goldman Sachs $421,763
Ubs Ag $296,670
Lehman Brothers $250,630
National Amusements Inc $245,843
JP Morgan Chase & Co $243,848
Sidley Austin LLP $226,491
Citigroup Inc $221,578
Exelon Corp $221,517
Skadden, Arps Et Al $196,420
Jones Day $181,996
Citadel Investment Group $171,798
Time Warner $155,383
Morgan Stanley $155,196
Google Inc $152,802
University of California $143,029
Jenner & Block $136,565
Kirkland & Ellis $134,738
Wilmerhale Llp $119,245
Credit Suisse Group $118,250
Never mind that Obama voted for a business-friendly “tort reform” bill that rolls back working peoples’ ability to obtain reasonable redress and compensation from misbehaving corporations. Or that Obama claims to oppose the introduction of single-payer national health insurance on the grounds that such a widely supported social-democratic change would lead to employment difficulties for workers in the private insurance industry—at places like Kaiser and Blue Cross Blue Shield.
“I believe all of you are as open and willing to listen as anyone else in America. I believe you care about this country and the future we are leaving to the next generation. I believe your work to be a part of building a stronger, more vibrant, and more just America. I think the problem is that no one has asked you to play a part in the project of American renewal.”
- Barack Obama, speaking to the masters of “American” finance capitalism at the headquarters of NASDAQ, Wall Street, New York City, September 17, 2007
by
coyote (1 articles, 0 quicklinks, 0 diaries, 67 comments)
on Thursday, March 27, 2008 at 6:29:01 PM
