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Obama: Wall Street reforms made financial system safer

Saturday, July 23, 2016 - 01:56

Senator Elizabeth Warren joins U.S. President Barack Obama for his weekly address to talk about the gains made under the administration's Wall Street reforms. Rough Cut (no reporter narration).

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ROUGH CUT (NO REPORTER NARRATION) U.S. President Barack Obama says he wants to protect his Wall Street reforms. In his weekly address, he touted the gains made under those reforms, saying "These reforms have already made our financial system safer and more resilient." Obama was joined by Democratic U.S. Senator Elizabeth Warren who also spoke in favor of Obama's financial reform law and slammed Republican presidential nominee Donald Trump's proposal to weaken those reforms. Warren did not mention Trump by name, but she lambasted the billionaire's policy proposals. "Big banks and their Republican allies in Congress try to roll back these protections and undermine the consumer watchdog, whose only job is to look out for you. Their nominee for President promises to dismantle all of it. They may have forgotten about the crisis, but working families sure haven't. We haven't either. And that's why we're not going to let them give Wall Street the ability to threaten our economy all over again, " Warren said. Trump has vowed to dismantle most of the reforms. Obama, who leaves office in January, is eager to have a Democrat succeed him to ensure his legacy on the economy, healthcare reform and climate change continues. Congress passed the 2010 Dodd-Frank law in response to the 2007-2009 financial crisis. In addition to creating a new consumer agency, the law restricted banks' ability to make risky investments and gave regulators new power over Wall Street executives' pay. The U.S. financial industry has spent much of the past six years seeking legislative changes to Dodd-Frank and wielding its clout in a quieter way by trying to push regulatory agencies to implement the law in ways they consider manageable. Banks still want tweaks to the rules, such as simpler capital requirements - which limit banks' reliance on debt for funding - and carve-outs from the toughest rules for small- and mid-sized institutions. There could be risks for the banking industry should Trump or a Democratic successor to Obama push for a reopening of Dodd-Frank following the November 8 election. Anger at Wall Street has been a potent theme in the election so far and resonates strongly with both Democratic and Republican voters.