New regulations on Wall Street-type financial firms will not only protect consumers, they will help prevent the kind of meltdown that led to a brutal recession and continues to plague the economy, President Obama said today.
“The primary cause (of the economic crisis) was a breakdown in our financial system,” Obama said before signing the new regulation bill that updates “antiquated and poorly enforced rules.”
As Obama signed the new bill, Republicans called the new rules an overreaction by government that will burden legitimate businesses.
“The American people are connecting the dots,” said Senate Minority Leader Mitch McConnell, R-Ky. “They don’t think this bill will solve the problems in the financial sector any more than they think the health care bill will lead to lower costs or better care.”
Obama highlighted creation of a new consumer protection board, designed to protect people from abuses connected to home mortgages, credit card debt and college loans.
The new rules also crack down on complex financial transactions that too often leave taxpayers holding the bag, Obama said.
“We all stand to gain from these reforms,” Obama said.
Republican Party chairman Michael Steele disagreed, saying the new rules will “saddle the business community with innumerable unintended consequences, tighter credit, and countless job-killing regulations.”
