Obama urges Congress to pass financial reform

June 27, 2010 at 12:00a.m.

MarketWatch

SAN FRANCISCO

President Barack Obama on Saturday urged Congress to pass the financial-reform bill aimed at strengthening consumer financial protection and enhancing transparency in derivatives trading.

Claiming that the economic crisis was triggered due to a lack of strong oversight on Wall Street, Obama said the reforms will lay a new foundation for growth and prosperity.

“That’s what the Wall Street reforms currently making their way through Congress will help us do — reforms that represent 90 percent of what I proposed when I took up this fight,” said Obama in his weekly address.

Obama also promised that the bill will enact the “Volcker rule” written to ensure that banks protected by the FDIC can’t engage in risky trades for profit.

“Put simply, we’ll end the days of taxpayer-funded bailouts, and help make sure Main Street is never again held responsible for Wall Street’s mistakes,” Obama said.

Meanwhile, Rep. Paul Ryan of Wisconsin, the top Republican on the House Budget Committee, said Saturday that the Democrats’ decision to cancel this year’s budget will “wreak havoc” on the economy and make job growth more difficult.

Ryan criticized the Democrats for an “out-of-control” stimulus spending spree and accused them of trying to raise taxes on the middle class.

“Talk about a recipe for disaster: Democrats are offering no budget, no priorities and no restraints — yet all their taxing, borrowing and spending continues unchecked,” Ryan said in a weekly GOP address.