Obama: GM News "Encouraging" but Financial Regulatory Reform Still Needed

From Sunlen Miller :

President Obama uses the “encouraging news” from General Motors this week as sign of improvement in the economy, yet says there’s still “a ways to go,” and advocates again for financial regulatory reform.

“The industry is recovering at a pace few thought possible,” Obama says in his weekly address of the auto industry, “GM announced that it paid back its loans to taxpayers with interest, fully five years ahead of schedule. It won’t be too long before the stock the Treasury is holding in GM can be sold, helping to reimburse the American people for their investment."

Mr. Obama says that as essential as it was that the government gets involved in the auto industry – and the banking business - he is glad to see that they are getting out.

“At the same time, even as we have come a long way, we still have a ways to go. The auto industry is more stable today. The economy is on a better footing. But people are still hurting.”

The president said that this requires tackling the underlying problems that caused the turmoil in the first place.

“In the absence of common-sense rules, Wall Street firms took enormous, irresponsible risks that imperiled our financial system – and hurt just about every sector of our economy,” the president said, “That’s why I went to New York City this week and addressed an audience that included leaders in the financial industry. And I once again called for reforms to hold Wall Street accountable and to protect consumers."

Mr. Obama notes that the reform would “put an end once and for all” to taxpayer bailouts.

-Sunlen Miller

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