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Obama Issues Warning To Bankers

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http://news.bbc.co.uk/1/hi/business/8255603.stm

US President Barack Obama has warned bankers against complacency, saying that some in the industry are ignoring the lessons of the financial crisis.

"We will not go back to the days of reckless behaviour and unchecked excess at the heart of this crisis," he said.

He called on Wall Street to support "the most ambitious overhaul of the financial system since the Great Depression".

The financial system was returning to normal but had not recovered, he added.

"There are some in the financial industry who are misreading this moment," said President Obama in a speech to mark one year since the collapse of Lehman Brothers bank.

"Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them. They do so not just at their own peril, but at our nation's."

He told Wall Street that it could not resume taking risks without regard for consequences and said they should not expect US taxpayers to bail them out again.

The speech came as UK Prime Minister Gordon Brown said that he was "appalled" that some financial firms had been continuing or even extending their bonus culture.

In a BBC interview, Mr Brown said he was determined that world leaders meeting in Pittsburgh next week would "complete the unfinished business" of cleaning up banks - including establishing rules on bonuses.

New powers

President Obama said his administration was working on an "ambitious" overhaul of the regulatory system.

Under the proposed regulation, the White House would give the central bank, the Federal Reserve, new powers over huge financial firms and the ability to seize banks whose collapse could threaten the economy.

He also wants a new watchdog, the Consumer Financial Protection Agency, to oversee products such as mortgages, car loans and credit cards. The Federal Trade Commission would also be given new powers to protect consumers.

"It is incumbent on us to put in place those reforms that will prevent this crisis from ever happening again," President Obama said.

The proposals have faced opposition from the banking industry and been tied up in Congress, which has been bogged down with the administration's healthcare reform proposals.

So:

A )Will this regulatory system allowing risk taking bankers to be jailed?

B )Or will it be the nice regulatory system that allows bankers to take ever increasing risks safe in the knowledge that the good old taxpayer will pick up the tab for the next 60 or so years.

Answers on a postcard to Obama about which regulatory system the taxpayer will end up with.

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Anybody other than a paid for shill would have made sure the money went where it was needed.

"We will not go back to the days of reckless behaviour and unchecked excess at the heart of this crisis,

A total lie, we're already there in terms of bonuses and market action - in fact worse in many ways.

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the world has long since stopped caring about what obama has to say.

The ridiculous optimisim and europhia surrounding his victory was as hollow as the '97 charade we witnessed here when tory blair and nulabour came in via landslide.

Indeed obama's own election and subsequent actions we can liken quite a lot to the gfc. there was a great sense that there would be profound changes within the casino's of capitalism. But those who actually believed that have only themselves to blame for beleiving in fairy stories.

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And from Market Ticker:

FHA and VA are today writing loans with 3.5% down (and in fact 0% down if you use the $8,000 "home buyers credit") and ignoring safe and sound front and back end ratio limits in a desperate attempt to prevent that which must happen to restore a sound housing industry: A decline in prices to sustainable levels.

so much for safe and sound lending when 20% of loans are delinquent or up for foreclosure.

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More total ******** from another GS shill.

Whatever is done, you can bet your ass it will benefit GS and bury some of the competition.

Edited by MOP

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Goldman Sachs paid for his election, he isn't about to make any changes that will be detrimental to his bosses. It's funny how Yanks actually believe that the President is anything other than a PR figurehead for the real powerbase. At least we know our Queen has no power.

Change, not for the elite, only the newly poor ex-middle class, your turn now for a fleecing.

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The ridiculous optimisim and europhia surrounding his victory was as hollow as the '97 charade we witnessed here when tory blair and nulabour came in via landslide.

Oh no,it's far more sinister than that.

have you seen some of the 1933 rallies where hitler was pounding the podium??

There are VERY scary similarities,and also in the crowds reaction.

BE AFRAID,BE VERY AFRAID

(I know you think I'm crackers but there IS occult stuff at work,and I'm very worried)

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Oh no,it's far more sinister than that.

have you seen some of the 1933 rallies where hitler was pounding the podium??

There are VERY scary similarities,and also in the crowds reaction.

BE AFRAID,BE VERY AFRAID

(I know you think I'm crackers but there IS occult stuff at work,and I'm very worried)

Crackers is a very polite word.

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Under the proposed regulation, the White House would give the central bank, the Federal Reserve, new powers over huge financial firms and the ability to seize banks whose collapse could threaten Goldman Sachs
(corrected)

.....and hand over their assets for pence in the pound to the Giant Squid.

Edited by Red Karma

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http://business.timesonline.co.uk/tol/busi...icle6834388.ece

Barack Obama: banks could cause another recession

A year after the Lehman Brothers collapse, Obama scolds firms for already ignoring lessons learnt from financial crisis

A year after the collapse of Lehman Brothers, President Obama told an audience of bankers today that their industry could drag the US into another recession if it does not submit to sweeping regulatory reform that would act to discourage “bloated bonuses†and end the era of firms that were “too big to failâ€.

In a speech symbolising Washington’s new role as Wall Street’s chief policeman, Mr Obama scolded firms that he said were already ignoring the lessons of the financial crisis, and set out a four-point plan to prevent it happening again.

He promised a new consumer protection agency to end the mis-selling of loans and mortgages to American homeowners; an expanded role for the Federal Reserve in monitoring the country’s biggest banks and insurance companies; new rules requiring stronger capital ratios for all lenders; and the establishment of a “resolution authority†to protect customers – if necessary at shareholders’ expense – when big firms go to the wall.

“The reforms I’ve laid out will pass and these changes will become law,†Mr Obama said, in far more confident language than he has used on the healthcare issue that continues to hobble his domestic agenda.

Thread from earlier

From the earlier thread where he was calling the end of the recession. This makes sense now he's going to blame the bankers when it all surely goes tits up next year or the year after with the ARM etc... resets.

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Under the proposed regulation, the White House would give the central bank, the Federal Reserve, new powers over huge financial firms and the ability to seize banks whose collapse could threaten Goldman Sachs

(corrected)

.....and hand over their assets for pence in the pound to the Giant Squid.

It really is that simple RK. Well summed up. ;)

Lehman was sacrificed to save GS via AIG.

GS didn't fund Obama and his campaign just to get f*ck all in return.

Edited by MOP

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Goldman Sachs paid for his election, he isn't about to make any changes that will be detrimental to his bosses. It's funny how Yanks actually believe that the President is anything other than a PR figurehead for the real powerbase. At least we know our Queen has no power.

Change, not for the elite, only the newly poor ex-middle class, your turn now for a fleecing.

Quite so. I get the impression from the look on his face these days that he's realised that the people who run the country - and that's not him - aren't going to let him get what he wants or anywhere near what he'd promised.

At least here it isn't as if anyone really believes the Labour Party run the country - or do they...

Anyone see the excellent film "JFK" the other night...

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