On Thursday, President Obama came to New York Chastising Wall Street and decrying to big to fail schemes, gambling on investors debt. The president announced a new bureaucratic program to financial mismanagement. The talk to place at the Cooper Union college in New York City.
Obama has called on Financial Services industries to stop “furious efforts” to oppose his financial reforms. Failure to carry out his changes to the financial system will result to more economic disasters.
Obama plans do not include the main culprits in the crisis the Federal Government’s control of the Government Sponsored Enterprises Fannie Mae and Freddie Mac. It was the lack of congressional oversight on Fannie and Freddie by House Banking committee and it Leader Rep. Barney Frank (D-MA). The Senate Financial Services committee and Chairman Sen. Christopher Dodd(D-CT). Fannie and Freddie gave implied guarantee mortgage-backed securities which cause the collapse of the economy.
Meanwhile New York Times Reports Republicans are opposing the legislation. In the Senate GOP block the efforts to start the debate in financial reform. Senate Majority Leader Harry Reid ask his Republican counterpart Senate Minority Leader Mitch McConnell to start debate he opposed. McConnell said the Democrats is interrupting the negotiations to bring both sides together. The fireworks began.
In response, Mr. Reid said he would call the first procedural vote on Monday to stop the Republican filibuster. That vote could test Republican resolve to oppose the measure in an election year, amid public dismay over big Wall Street profits and bonuses even as unemployment remains high.
At a press conference Democrats accused Republican of making false statements and show video to prove it. Republicans said they had renew talks.“Every indication is that the chairman and the ranking member are making progress in their discussions, and that this bill will have needed improvements,” Mr. McConnell said in a speech on Thursday.
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