On Thursday, April 22, 2010 President Barack Obama made an appearance on Wall Street in New York City to discuss different proposals that are currently being discussed to reform the financial sector of the United States. The speech was given in front of about 700 people in the Great Hall at Cooper Union College in Manhattan. Currently there is much division throughout the United States regarding the controversial issue of creating these new rules and regulations to manage
At one point in the president’s speech he revealed that Wall Street is not alone to blame for the current issues in the financial sector. CNN reports that Obama stated, “That crisis was born of a failure of responsibility — from Wall Street all the way to Washington — that brought down many of the world’s largest financial firms and nearly dragged our economy into a second Great Depression.”
On Wednesday, April 21, 2010 the Agriculture Committee voted 13-8 in favor of the bill that would now impose new regulations on Wall Street trades that can sometimes be extremely complex.
The main reason why Barack Obama made the trip to Wall Street today was to try and gain some support from the same organizations most responsible for causes the financial crisis in the country. The president needs cooperation from Wall Street in order to avoid inevitable financial disasters in the future. Also, Obama is looking to some additional pressure on the Republicans to support reform legislation that could potentially rectify the financial situation in this country.
Wall Street Reaction:
There is expected to be a lot of resistance from Wall Street on the president’s stance on passing a financial reform. Wall Street executives are not going to be interested in letting the United States government have a hand in the way their companies are run. They also don’t appreciate how the government has targeted them as the main reason why the economy has taken a turn for the worse. Many people working on Wall Street simply feel that large corporations should be allowed to run their businesses however they see fit.
In addition, Obama’s speech was met with a lot of skepticism. Many people feel that reform is a great idea and that transparency in the industry will help to avoid crisis in the future. The only problem is “How can it be done?” There are already numerous rules and regulations in place on Wall Street and the prospect of adding more may cause additional frustration.
It will be interesting to see how this planned financial reform will play out in the coming months.