HispanicBusiness

President Obama decided to go to Wall Street to mark the week in September when, the year prior, the U.S. financial system broke down. The week when the collapse of Lehman Brothers threatened to drag the U.S. and the world economy into a depression.

To commemorate this anniversary, President Obama presented his interpretation of the causes of the crisis, described how the intervention of the government has worked, and the need for reform of the financial system.

To those who are becoming complacent because the emergency seems to be over, the President said there is no going "back to the days of reckless behavior and unchecked excess that was at the heart of the crisis." He warned "Wall Street cannot resume taking risks without regard for consequences, and expect the next time, American taxpayers will be there to break their fall."

The proposed reform of the financial regulatory system was described by the President as "the most ambitious overhaul since the Great Depression." The reform consists of the following measures. First, the creation of a Consumer Financial Protection Agency, to prevent abuses against consumers. Second, to correct the deficiencies in regulation and weaknesses in oversight, which allowed for what the President called "systematic, and systemic, abuse." For this purpose, under an oversight council, the Federal Reserve will be in charge of regulating those large financial firms that can imperil the whole financial system. Finally, an international coordinated response is required to reform the global financial system.

The President expects that Congress will approve this year the proposed financial regulatory reform.