President Barack Obama travelled to New York on Thursday where he reached out to Wall Street to win its cooperation on his major financial regulation overhaul package which awaits a Senate vote. President chose the Cooper Union educational institution in

First, Obama said, the bill being considered in the Senate would create new protections for the financial system and the broader economy and in particular will ensure that the taxpayers are never again at a loss because a firm is deemed. He said that the recent financial crisis had occurred because there was no process designed to contain the failure of a Lehman Brothers.

 
He added  that it was for this reason that  a system was needed  to shut these firms down with the least amount of collateral damage to innocent people and businesses.
 

Next, Obama argued that regulatory reform must  bring new transparency to financial markets, for example by preventing firms from making huge and risky bets using derivatives and other complicated financial instruments in ways that defied accountability. In this regard he said that these financial instruments must spur investments in the economy
 
Third, he explained that his administration would enact the strongest consumer financial protections  to protect people taking on mortgages and credit cards and auto loans from being misled by companies and losing their homes and fortunes.
 
Finally, he said that the Wall Street reforms he was proposing would give shareholders an altogether new power  in the financial system. Obama said, adding that this compensation structure had also created perverse incentives to take reckless risks.