Obama Push for 'World' Regulations

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Obama Says Financial Regulations Must Be Strengthened Globally
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By Nicholas Johnston

Sept. 19 (Bloomberg) -- President Barack Obama said tougher financial
regulations are needed worldwide to protect consumers, provide
economic stability and prevent future crises.

With the leaders from the Group of 20 nations set to meet next week in
Pittsburgh, Obama said in his weekly address on the radio and Internet
that international cooperation has "stopped our economic freefall."

"We know we still have a lot to do, in conjunction with nations around
the world, to strengthen the rules governing financial markets and
ensure that we never again find ourselves in the precarious situation
we found ourselves in just one year ago," Obama said.

The administration has proposed an overhaul of U.S. financial
regulations including oversight of the systemic risk large financial
institutions pose to the economy, new ways for the government to
dismantle failed companies and a regulator to oversee financial
products for consumers.

Obama reiterated his calls for Congress to act on his regulatory
proposals, which he also made in a speech on Wall Street Sept. 13.

"As I told leaders of our financial community in New York City earlier
this week, a return to normalcy can't breed complacency," Obama said
in today's address. "Our government needs to fundamentally reform the
rules governing financial firms and markets to meet the challenges of
the 21st century."

Oversight for Consumers

Obama said a central element to this regulatory overhaul is a new
agency to oversee consumer products, including mortgages and credit
cards.

"We need clear rules, clearly enforced. And that's what this agency
will do," Obama said.

Obama said lobbyists for financial institutions are already fighting
against new regulations.

"We cannot let the narrow interests of a few come before the interests
of all of us," Obama said. "We cannot forget how close we came to the
brink, and perpetuate the broken system and breakdown of
responsibility that made it possible."

In the Republican address, North Carolina Representative Sue Myrick
focused on Obama's health-care proposals, which are being debated in
Congress. She said the plan being offered by Obama and congressional
Democrats would lead to government-run insurance and that would mean
delays in care.

Access to Care

"Every family that confronts a serious illness should have access to
the highest-quality care at the lowest possible cost, with no delays,"
Myrick said.

Obama has said he favors a government-run insurance program to compete
with private insurers. While he has suggested he wouldn't make it a
requirement as part of final legislation, other Democrats including
House Speaker Nancy Pelosi of California have said it must be part of
any bill.

"Replacing your current health care with a government-run system is
not the answer," Myrick said.

Myrick also said the health-care proposals would lead to tax increases
on small businesses that would lead to the elimination of more than
1.6 million jobs.

"This is the worst possible time to be imposing new, job- killing
taxes," Myrick said.

To contact the reporter on this story: Nicholas Johnston in Washington
at Njohnston3@bloomberg.net
Last Updated: September 19, 2009 06:00 EDT