NEW YORK — President Barack Obama rebuked Wall Street for risky practices Thursday even as he sought its leaders’ help for “updated, commonsense” banking regulations to head off any new financial crisis.
“Ultimately, there is no dividing line between Main Street and Wall Street. We rise or we fall together as one nation. So I urge you to join me,” Obama said in a high-stakes speech near the nation’s financial hub before some of the nation’s most influential bankers.
The president acknowledged differences of opinion over how to best protect bailout-weary taxpayers but denounced criticism from some Republicans who say a Democrat-sponsored bill headed for Senate action would encourage rather than discourage future bailouts of huge banks.
“That makes for a good sound bite, but it’s not factually accurate. It is not true,” Obama said to scattered applause. “In fact, the system as it stands — the system as it stands is what led to a series of massive, costly taxpayer bailouts.”
He said the overhaul legislation would put a stop to such bailouts.
Obama’s speech came at a delicate time in negotiations over the Senate measure, which could be debated next week. The House has passed its own version of financial-overhaul legislation. Obama did not say which one he favored but told an audience that included dozens of financial leaders “both bills represent significant improvement on the flawed rules we have in place today.”
Taking his argument for stronger oversight of the financial industry to the city where the economic meltdown began, Obama said it was “essential that we learn the lessons of this crisis, so we don’t doom ourselves to repeat it. And make no mistake, that is exactly what will happen if we allow this moment to pass.”
Obama’s efforts to give the financial bill a personal push toward the finish line drew skepticism from his critics.
“The truth is, the American people have had enough of the federal government,” said House Republican leader John Boehner of Ohio. He said Obama-backed legislation “will enrich Wall Street at the expense of every other financial institution in the country.”
Meanwhile, Senate Majority Leader Harry Reid, D-Nev., moved to set up a procedural test vote Monday if bipartisan negotiations fail to yield an agreement. “The games of stalling are over,” Reid told reporters.
