Obama takes on banks: 'Something's gotta change'
VIDEO - Later this morning, Treasury Secretary Tim Geithner will tell Congress President Obama wants "shock absorbers" to contain the damage when big banks fail...
Later this morning, Treasury Secretary Tim Geithner will tell Congress President Obama wants “shock absorbers” to contain the damage when big banks fail.
“When we don’t have basic rules of the road in place that assures that consumers aren’t abused and tricked, and investors don’t know what’s going on, then something’s gotta change,” said President Obama.
The timing may be right. Just days after the SEC accused Goldman-Sachs of fraud.
Democrats are pushing a 50 billion dollar fund, paid by banks, to save those on the verge of collapse.
Senator Chris Dodd, Chairman of the Senate Banking Committee said, “Why should the American taxpayer pay that bill?”
Republicans say that amounts to a bailout, which would encourage banks to take too many risks.
New Hampshire Senator Judd Gregg said, “The initiative here from our side of the aisle is to end too big to fail.”
The partisan fight is on. Democrats say banks have Republicans in their pocket.
Political Analyst Stuart Rothenberg said, “They’re trying to paint Republicans as defenders of Wall Street.”
And Republicans accuse Democrats of putting taxpayers at risk.
White House Press Secretary Robert Gibbs said, “We are not watering down financial reform on behalf of big banks. We’re just not gonna to do that.”
The showdown starts Thursday when President Obama speaks in New York, as Democrats introduce their plan in the Senate.
