News / USA

Obama to Sign Financial Reform Next Week

TEXT SIZE - +

White House officials say President Barack Obama will sign legislation next week to reform the U.S. financial system.  The president is applauding the Senate's final approval of the bill.   

As he returned from a brief trip to the central state of Michigan Thursday, the president said the legislation that passed the Senate will vastly reform the way big financial firms do business.

"Reform that will prevent the kind of shadowy deals that led to this crisis, reform that would never again put taxpayers on the hook for Wall Street's mistakes," he said. "The reform that Congress passed today will accomplish these goals."

The president told reporters this legislation will prevent any further financial crises like the one that started in 2008 with the failure of several large Wall Street firms.

"There will be no more taxpayer-funded bailouts.  Period," he said.  "If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy.  And there will be new rules to end the perception that any firm is 'too big to fail'."

Before the Senate vote, the top Republican in the House of Representatives, John Boehner, was urging its repeal, calling the legislation "unwise."

"I think that it institutionalizes 'too big to fail' and gives far too much authority to federal bureaucrats to bail out virtually company in America they decide ought to be bailed out," he said. "I think it ought to be repealed."

The president said Mr. Boehner's comments are out of step with the views of the American people.

"Now, already, the Republican leader in the House has called for repeal of this reform," he said. "I would suggest that America cannot afford to go backwards, and I think that is how most Americans feel as well.  We cannot afford another financial crisis, just as we are digging out from the last one."

Shortly after the vote, U.S. Treasury Secretary Timothy Geithner said the effects of this reform will extend beyond the U.S. and into the world's markets.

"Recognizing that financial markets are truly global today, we will work hard to bring the rest of the world along with us, as we raise the standards of financial protection in the United States and reinforce the competitiveness of our nation's most innovative firms," he said.

The legislation will more tightly regulate banks, and especially the complex transactions known as derivatives.  It will also extend new protections to borrowers and investors.  

Also on Thursday, the large investment firm Goldman Sachs has agreed to pay $550 million to settle civil fraud charges that the company misled people who invested in mortgage-related investments.  Under the deal, Goldman would pay the U.S. Securities and Exchange Commission $300 million in fines.  The rest would go to those who lost money on the investments.

You May Like

Thailand's Political Power Struggle Continues

Court gave Prime Minister Yingluck Shinawatra until May 2 to prepare her defense over abuse of power charges but uncertainty remains over election timing More

Malaysia Plane Search Tests Limits of Ocean Mapping Technology

Expert tells VOA existing equipment’s maximum operating depth is around 6 kilometers as operation continues on ocean bed for any trace of MH370 More

Open Source Seeds Hit the Market, Raise Awareness

First open source seeds include 29 new varieties of broccoli, celery, kale, quinoa and other vegetables and grains More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Pet Kangaroo Helps Spread Environmental Messagei
X
Penelope Poulou
April 22, 2014 5:53 PM
Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pet Kangaroo Helps Spread Environmental Message

Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pro-Russian Separatists Plan 'Federalization Referendum' in Eastern Ukraine

Pro-Russian separatists in eastern Ukraine say they plan to move forward next month with a referendum vote for greater autonomy, despite the Geneva agreement reached with Russia, the U.S. and Ukraine to end the political conflict. VOA's Brian Padden reports from the city of Donetsk in Eastern Ukraine.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video International Students Learn Film Production in World's Movie Capital

Hollywood - which is part of Los Angeles - is the movie capital of the world, and many aspiring filmmakers go there in hopes of breaking into the movie business. Mike O'Sullivan reports that regional universities are also a magnet for students who hope to become producers or directors.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid