English subtitles for clip: File:2010-04-17 President Obama's Weekly Address.ogv
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1 00:00:06,033 --> 00:00:08,166 The President: There were many causes of the turmoil that ripped through 2 00:00:08,166 --> 00:00:10,567 economy over the past two years. 3 00:00:10,567 --> 00:00:13,700 But above all, this crisis was caused by the failures in 4 00:00:13,700 --> 00:00:15,700 the financial industry. 5 00:00:15,700 --> 00:00:18,834 What's clear is that this crisis could have been avoided 6 00:00:18,834 --> 00:00:21,633 if Wall Street firms were more accountable, 7 00:00:21,633 --> 00:00:24,099 if financial dealings were more transparent, 8 00:00:24,100 --> 00:00:26,266 and if consumers and shareholders were given more 9 00:00:26,266 --> 00:00:29,599 information and authority to make decisions. 10 00:00:29,600 --> 00:00:31,233 But that didn't happen. 11 00:00:31,233 --> 00:00:33,233 And that's because special interests have waged a 12 00:00:33,233 --> 00:00:36,199 relentless campaign to thwart even basic, 13 00:00:36,200 --> 00:00:40,900 common-sense rules -- rules to prevent abuse and protect consumers. 14 00:00:40,900 --> 00:00:44,266 In fact, the financial industry and its powerful lobby have 15 00:00:44,266 --> 00:00:47,199 opposed modest safeguards against the kinds of reckless 16 00:00:47,200 --> 00:00:51,800 risks and bad practices that led to this very crisis. 17 00:00:51,800 --> 00:00:54,532 The consequences of this failure of responsibility -- 18 00:00:54,533 --> 00:00:56,600 from Wall Street to Washington -- 19 00:00:56,600 --> 00:00:59,333 are all around us: 8 million jobs lost, 20 00:00:59,333 --> 00:01:04,000 trillions in savings erased, countless dreams diminished or denied. 21 00:01:04,000 --> 00:01:06,667 I believe we have to do everything we can to ensure that 22 00:01:06,667 --> 00:01:09,567 no crisis like this ever happens again. 23 00:01:09,567 --> 00:01:11,866 And that's why I'm fighting so hard to pass a set of Wall 24 00:01:11,867 --> 00:01:15,300 Street reforms and consumer protections. 25 00:01:15,300 --> 00:01:18,200 A plan for reform is currently moving through Congress. 26 00:01:18,200 --> 00:01:19,934 Here's what this plan would do. 27 00:01:19,934 --> 00:01:22,567 First, it would enact the strongest consumer financial 28 00:01:22,567 --> 00:01:24,399 protections ever. 29 00:01:24,400 --> 00:01:27,066 It would put consumers back in the driver's seat by forcing big 30 00:01:27,066 --> 00:01:30,233 banks and credit card companies to provide clear, 31 00:01:30,233 --> 00:01:32,867 understandable information so that Americans can make 32 00:01:32,867 --> 00:01:36,467 financial decisions that work best for them. 33 00:01:36,467 --> 00:01:41,166 Next, these reforms would bring new transparency to financial dealings. 34 00:01:41,166 --> 00:01:44,866 Part of what led to this crisis was firms like AIG and others 35 00:01:44,867 --> 00:01:48,500 making huge and risky bets -- using things like derivatives -- 36 00:01:48,500 --> 00:01:50,467 without accountability. 37 00:01:50,467 --> 00:01:52,934 Warren Buffett himself once described derivatives bought and 38 00:01:52,934 --> 00:01:57,633 sold with little oversight as "financial weapons of mass destruction." 39 00:01:57,633 --> 00:02:01,166 That's why through reform we'd help ensure that these kind of 40 00:02:01,166 --> 00:02:04,166 complicated financial transactions take place on an 41 00:02:04,166 --> 00:02:05,734 open market. 42 00:02:05,734 --> 00:02:09,100 Because, ultimately, it is a marketplace that is open, free, 43 00:02:09,100 --> 00:02:12,299 and fair that will allow our economy to flourish. 44 00:02:12,300 --> 00:02:15,433 We'd also close loopholes to stop the kind of recklessness 45 00:02:15,433 --> 00:02:17,834 and irresponsibility that we've seen. 46 00:02:17,834 --> 00:02:20,633 It's these loopholes that allowed executives to take risks 47 00:02:20,633 --> 00:02:22,667 that not only endangered their companies, 48 00:02:22,667 --> 00:02:24,934 but also our entire economy. 49 00:02:24,934 --> 00:02:27,567 And we're going to put in place new rules so that big banks and 50 00:02:27,567 --> 00:02:31,166 financial institutions will pay for the bad decisions they make 51 00:02:31,166 --> 00:02:32,767 -- not taxpayers. 52 00:02:32,767 --> 00:02:36,400 Simply put, this means no more taxpayer bailouts. 53 00:02:36,400 --> 00:02:39,367 Never again will taxpayers be on the hook because a financial 54 00:02:39,367 --> 00:02:42,333 company is deemed "too big to fail." 55 00:02:42,333 --> 00:02:45,600 Finally, these reforms hold Wall Street accountable by giving 56 00:02:45,600 --> 00:02:48,632 shareholders new power in the financial system. 57 00:02:48,633 --> 00:02:51,667 They'll get a say on pay: a vote on the salaries and bonuses 58 00:02:51,667 --> 00:02:53,667 awarded to top executives. 59 00:02:53,667 --> 00:02:56,800 And the SEC will ensure that shareholders have more power in 60 00:02:56,800 --> 00:02:59,967 corporate elections, so that investors and pension holders 61 00:02:59,967 --> 00:03:02,467 have a stronger voice in determining what happens with 62 00:03:02,467 --> 00:03:04,600 their life savings. 63 00:03:04,600 --> 00:03:07,966 Now, unsurprisingly, these reforms have not exactly been 64 00:03:07,967 --> 00:03:11,066 welcomed by the people who profit from the status quo -- 65 00:03:11,066 --> 00:03:13,266 as well their allies in Washington. 66 00:03:13,266 --> 00:03:15,733 This is probably why the special interests have spent a lot of 67 00:03:15,734 --> 00:03:20,633 time and a lot of money lobbying to kill or weaken the bill. 68 00:03:20,633 --> 00:03:23,934 Just the other day, in fact, the Leader of the Senate Republicans 69 00:03:23,934 --> 00:03:27,033 and the Chair of the Republican Senate campaign committee met 70 00:03:27,033 --> 00:03:30,899 with two dozen top Wall Street executives to talk about how to 71 00:03:30,900 --> 00:03:33,533 block progress on this issue. 72 00:03:33,533 --> 00:03:36,132 Lo and behold, when he returned to Washington, 73 00:03:36,133 --> 00:03:38,367 the Senate Republican Leader came out against 74 00:03:38,367 --> 00:03:40,934 common-sense reforms that we've proposed. 75 00:03:40,934 --> 00:03:43,700 In doing so, he made the cynical and deceptive assertion that 76 00:03:43,700 --> 00:03:46,500 reform would somehow enable future bailouts -- 77 00:03:46,500 --> 00:03:49,700 when he knows that it would do exactly the opposite. 78 00:03:49,700 --> 00:03:53,000 Every day we don't act, the same system that led to bailouts 79 00:03:53,000 --> 00:03:56,734 remains in place -- with the exact same loopholes and the 80 00:03:56,734 --> 00:03:58,667 exact same liabilities. 81 00:03:58,667 --> 00:04:01,333 And if we don't change what led to the crisis, 82 00:04:01,333 --> 00:04:03,900 we will doom ourselves to repeat it. 83 00:04:03,900 --> 00:04:05,266 That's the truth. 84 00:04:05,266 --> 00:04:07,867 Opposing reform will leave taxpayers on the hook if a 85 00:04:07,867 --> 00:04:10,533 crisis like this ever happens again. 86 00:04:10,533 --> 00:04:14,299 So my hope is that we can put this kind of politics aside. 87 00:04:14,300 --> 00:04:17,433 My hope is that Democrats and Republicans can find common 88 00:04:17,433 --> 00:04:19,733 ground and move forward together. 89 00:04:19,733 --> 00:04:24,032 But this is certain: one way or another, we will move forward. 90 00:04:24,033 --> 00:04:25,967 This issue is too important. 91 00:04:25,967 --> 00:04:28,667 The costs of inaction are too great. 92 00:04:28,667 --> 00:04:30,799 We will hold Wall Street accountable. 93 00:04:30,800 --> 00:04:34,767 We will protect and empower consumers in our financial system. 94 00:04:34,767 --> 00:04:37,367 That's what reform is all about. 95 00:04:37,367 --> 00:04:38,800 That's what we're fighting for. 96 00:04:38,800 --> 00:04:40,900 And that's exactly what we're going to achieve. 97 00:04:40,900 --> 00:04:42,366 Thanks so much.