Wall Street clashes with the White House over financial regulation by Zuzana Zelenakova

Following the recent financial crisis, from which the whole world is still recovering, the Obama administartion is trying to introduce large-scale modification of financial regulation. Wall Street, among others, is worried about their profits. But the Obama administration is pressing hard, as it has made this point one of its priorities, and the Republicans are complaining that these steps could put the economy slowly emerging from the crisis at risk once again. President Barrack Obama met with congressional leaders Wednesday morning to "turn up the pressure for an overhaul of Wall Street regulations". The Senate is planning to introduce the changes in less than two weeks.! Republicans were quick to announce they would stand against Democrats in this one, as they do not approve of the extent of the revamp. Shortly before the closed meeting president Obama addressed the reporters to say that he was "absolutely confident that the bill that emerges is going to be a bill that prevents bailouts. That's the goal." "If there's one lesson that we've learned," he said, "it's that an unfettered market where people are taking huge risks and expecting taxpayers to bail them out when things go sour is simply not acceptable." He also stressed the need for tighter regulation of derivatives that are extremely risky. Derivatives are basically contracts between two or more parties where tha value of the contract is derived from the fluctuations in the underlying asset. Generally, they are used to hedge risk, but can be also used for speculation. Senate republican leader Mitch McConnell of Kentuckyis still strongly convinced that the bill "will lead to endless! taxpayer bailouts of Wall Street banks." He compared the situ! ation to the health care reform. "Put together a partisan bill, then jam it through on a strictly partisan basis."

related story (sgx17014): http://news.yahoo.com/s/ap/us_obama;_ylt=AnrNlLp4d0P4uWQ.h44...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

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