Wall Street Is to Blame for the Financial Crisis

Wall Street Is to Blame for the Financial Crisis

Charles Hurt and David Seifman, "'Populist' Prez Bonks the Banks," New York Post, January 22, 2010. Reproduced by permission.

"Obama laid blame for the financial crisis squarely at the feet of the banks, railed against their 'excess and abuse,' and laid out far-reaching new regulations on them."

In the following viewpoint, Charles Hurt and David Seifman discuss President Barack Obama's all-out war on Wall Street. Obama believes that Wall Street and its investment banks took risks and used "excess and abuse" to bring about the financial crisis. The president communicates his resolve to reform the banks and industry he believes caused the crisis by ensuring that Wall Street pays back the American people for the bailout. Charles Hurt and David Seifman are columnists for theNew York Post.

As you read, consider the following questions:

1. According to the article, what would the proposed reforms give the federal government?

2. What would the reforms force banks to get rid of?

3. As stated in the article, which banks "would have to change radically or stop being banks"?

Striking a fighting populist stance in a bid to reverse his sagging political fortunes, President Obama yesterday portrayed himself as the champion of Main Street while unleashing an all-out war on Wall Street.

Obama laid blame for the financial crisis squarely at the feet of the banks, railed against their "excess and abuse," and laid out far-reaching new regulations on them that instantly drew sour reactions from [New York] Mayor [Michael] Bloomberg and others concerned about the vitality of the financial industry.

Speaking in sometimes fiery language two days after Republican Scott Brown's Senate win in Massachusetts altered the political landscape, Obama said he had welcomed input from the financial sector.

"But what we've seen so far, in recent weeks, is an army of industry lobbyists from Wall Street descending on Capitol Hill...