President Obama's remarks on financial crisis: Liveblog

By GottaLaff

Wow, he's 10 minutes early! Live, from New York, it's Barack Obama Live!

For those without a Tee Vee Machine: I'LL BE UPDATING REGULARLY, SO REMEMBER TO REFRESH.

Here we go:

He's recapping the financial crisis, on the first anniversary of the Lehman collapse.

Previous administration took necessary action. But, when we came in, the situation remained urgent. It was feared the largest banks had too little capital, risky loans... it spread. Now it became a full blown economic crisis.

Factories, families were affected. Foreclosures. Lack of access to affordable credit affected small businesses. Weakened financial system weakened the economy.

This admin., under Time Geithner, Summers, etc., moved quickly on all fronts, initializing financial stability plan, restart lending...

Opened books of lg. financial firms: Restored capital and confidence. We spurred lending. Homeownership planned helped. Recover plan helped, spurred consumer spending. Prevented layoffs of public servants. 1000s of recovery projects are on the way now.

8 mos. later, the work continues. I'll never be satisfied while people are out of work, but the storms are beginning to break. In fact, while a need for govt. involvement to stabilize financial system, we're seeing money flow back to taxpayers. There's still problems, but banks have repaid $$, and taxpayers have earned a 17% return on their investment.

More taxes were not required. That fear has not been realized.

More time/work needed. We're beginning to return to normalcy.

BUT: Normalcy cannot lead to complacency. Some in the industry are misreading this moment, ignoring lessons. They do so at their own peril, but at our nation's.

So hear this: We won't go back to reckless behavior, excess. Those on Wall St. can't take risks w/o consequences. We need strong rules to guard against systemic risks.

We need to protect consumers, taxpayers, economy as whole.

Rules mustn't stifle enterprise, innovation. We want to work WITH financial industry. But old ways cannot stand.

Change is needed now.

We're calling for financial industry to join us to update rules/regulatory structure.

House/Senate are working with us to pass regulatory reform.

Biggest overhaul since Depression. Rooted in principle of transparency, accountability.

Markets should reward those who compete honestly within the system, not game the system. Outline:

1. New rules to protect consumers, new agency to enforce those rules. [applause] Loans were taken out by Americans, offered by lenders who didn't tell the truth, because no agency could make sure that didn't happen. Consumer Financial Protection Agency will give consumers clear, concise info. Lenders shouldn't have to worry about unregulated competitors. In past, we had the wrong KIND of innovation. They hid real costs, got the business. Setting ground rules will increase competition.

2. Must close loopholes that caused part of crisis. Overlaps, lack of accountability, weaknesses engendered abuse. Existing rules: Some co's. can shop for regulators of their choice, or act beyond rules. Nobody has been responsible for protecting system as a whole. Result: Failure of one firm threatened viability of others. We'll create clear accountability... oversight council will be created... Require firms to meet stronger capital/liquidity requirements. Avoid a crisis by insuring lg. firms can't take risks that threaten whole system, plus have resources to weather storms.

3. We want to create a resolution authority if it does happen. No more Too Big To Fail. [Note: He's going fast.. I'm missing some details] Tapping fed. reserve/treasury was all we've had until now. Taxpayers shouldn't foot the bill. Now they'll have to get paid back.

4. Close gaps among countries, and in this country. Leaders agreed to work together to spur global demand, prevent global recession. This work continues. Essential: Global race to the top, stronger capital standards, reform regulatory system globally. Geithner's already on this.

Buy/sell goods globally helps the economy. Expanded trade, new trade agreements are essential. We invoke provisions of EXISTING agreements.. not protectionism.

Some will defend status quo, or say to do less or nothing at all.. engage in revisionist history, selective memories who forget what just happened. Was all that GOOD for the financial system? GOOD for our economy? The American people? I believe in power of free market.. jobs created not by govt. but by businesses. Govt. should provide ground rules.

I didn't run for pres. to bail out banks. But the absence of common sense regulations is what created the need for intervention. Lack of sensible rules of the road... The rescue was far more intrusive than ANY of us predicted, D or R.

What's needed now goes beyond these reforms. This was also a failure of responsibility, fundamentally was that failure of responsibility. Collective failure of Washington, Wall St., etc.

Rebuild by rebuilding TRUST stronger than before. You don't have to wait for a new law to do that. [giving examples] You can't shirk your obligation... Urging you to take this obligation to heart... Help small business owners who desperately need loans.. help communities... come up with creative approaches... bring banking to those who live and work outside of banking system.. embrace, not resist, reform.

I am committed to putting this nation on secure, sound fiscal footing. I won't go along with old Wash. ways... must not add a dime to deficit with healthcare reform. Must have common sense. No more recklessness, irresponsibility.