EMBARGOED: Remarks of President Barack Obama at Siemens Wind Turbine Blade Manufacturing Plant in Fort Madison, Iowa--As Prepared for Delivery

THE WHITE HOUSE

Office of the Press Secretary

_______________________________________________________________________________________

EMBARGOED UNTIL DELIVERY

April 27, 2010

 

 

Remarks of President Barack Obama—As Prepared for Delivery

Siemens Wind Turbine Blade Manufacturing Plant

Fort Madison, Iowa

April 27, 2010

 

As Prepared for Delivery—

 

Good afternoon, everybody.  Thank you for that warm welcome.  It's so good to be back in Iowa and in Fort Madison.  I just finished a tour of this impressive facility and saw how they create these giant wind blades.  It was remarkable, made all the more so when you consider that just a few short years ago, this facility sat dark and quiet.  Today, it's alive and humming with more than 600 employees, almost two-thirds of whom found themselves unemployed before landing here.  And this plant supports more than 350 other jobs throughout Lee County.

 

Here, you manufacture blades for some of the most advanced wind turbines in the world; each as tall as Air Force One is long; each capable of generating enough energy to power hundreds of homes, just by harnessing the wind.

 

Here, you're helping stake America's claim on a clean energy future.  And you're staking Fort Madison's claim on America's future.

 

That's why I've come to Iowa today.  To talk with folks like you about the economic pain that towns like this are feeling – but also about their economic potential.

 

Lately, we've been able to report some welcome news after a hard two years.  Our economy is growing.  Our markets are climbing.  Our businesses are beginning to create jobs again.

 

But in too many places, the recovery isn't reaching everyone just yet.  Times are still tough in towns like Fort Madison.  And times are still tough for middle-class Americans, who had been swimming against the current for years before the economic tidal wave hit.

 

So even as we took steps to rescue our economy and recover from this crisis, we took steps to rebuild our economy on a new foundation for long-term growth and prosperity – to create conditions so that folks who work hard can finally get ahead.

 

That means making our schools more competitive and college more affordable.  That means health insurance reform that gives families and businesses more choice, more competition, and more protection from the worst abuses of the insurance industry.  That means commonsense reforms that prevent the irresponsibility of a few on Wall Street from threatening the dreams of millions on Main Street.  And that means igniting a new, clean energy economy that generates good jobs right here in America.

 

For decades, we talked about this.  We talked about how our dependence on fossil fuels threatened our economy; but our will to act rose and fell with the price of a barrel of oil.  We talked about how it threatened future generations; even as we witnessed the mounting evidence of climate change.  We talked about how it threatened our national security; even as that dependence grew deeper with every passing year.

 

And as we talked, other nations acted.  From China to Spain, other nations recognized that the country that leads the clean energy economy will be the country that leads the 21st century global economy.  And they made serious investments to win that race and the jobs that come with it. 

 

Well, I don't accept second place for the United States of America.  That's why our energy security has been a top priority for my administration since the day I took office.

 

We began early last year by making the largest investment in clean energy in our nation's history.  It's an investment expected to create or save more than 700,000 jobs across America by the end of 2012 – jobs manufacturing next-generation batteries for next-generation vehicles; jobs upgrading to a smarter, stronger power grid; jobs doubling America's capacity to generate renewable electricity from sources like the sun and the wind, just like you do here.

 

That investment was part of the Recovery Act.  And this facility took advantage of that act's Advanced Energy Manufacturing Tax Credit; which allowed you to add equipment, boost output, and hire new workers right here in Fort Madison.  In the midst of economic turmoil, the Recovery Act helped make it possible for America to install nearly 10 gigawatts of new wind generating capacity last year alone – enough to power more than 2.4 million American homes.  And each new wind farm has the potential to create hundreds of construction jobs, and dozens of permanent local jobs, in communities just like Fort Madison.

 

One study suggests that if we pursue our full potential for wind energy, and everything goes right, wind could generate as much as 20 percent of America's electricity 20 years from now.  While that may be on the high end of what's possible, it may soon be the reality here in Iowa.  This state already generates a higher percentage of its electricity from wind than any other state – 14 percent – and that number is only growing.

 

As extraordinary as this facility is, however, wind power isn't the silver bullet that will solve all our energy challenges.  There isn't one.  But it is a key part of a comprehensive strategy to move us from an economy that runs on fossil fuels to one that relies on more homegrown fuels and clean energy.  And I believe that we can come together around this issue and pass comprehensive energy and climate legislation that will ignite new industries, spark new jobs in towns like this, and make America more energy independent.  Our security, our economy, and the future of our planet depend on it.

 

This is what's possible in a clean energy economy.  And while it may not feel like it every day when you punch in; you are making it possible.  You're blazing a trail.  And someday, our children, and our children's children; will look back on this moment and marvel at a generation that chose, in a time of crisis, to place its bet on the future; that chose to reopen factories, restart assembly lines, and retrain workers; that chose to once again step forward and meet the challenges of our time.  Thank you, everybody. 

 

###

 

EMBARGOED: Remarks of President Barack Obama at the Presidential Entrepreneurship Summit--As Prepared for Delivery

THE WHITE HOUSE

Office of the Press Secretary

_______________________________________________________________________________________

EMBARGOED UNTIL DELIVERY

April 26, 2010

 

 

Remarks of President Barack Obama—As Prepared for Delivery

Presidential Entrepreneurship Summit

Ronald Reagan Building & International Trade Center

Washington, DC

Monday, April 26, 2010

 

 

As Prepared for Delivery—

 

Good evening everyone, and welcome to Washington.  In my life, and as President, I’ve had the great pleasure of visiting many of your countries.  I’ve always been grateful for the warmth and hospitality that you and your fellow citizens have shown me.  Tonight, I appreciate the opportunity to return that hospitality.

 

For many of you, I know this is your first time visiting our country.  So let me say, on behalf of the American people, welcome to the United States of America.

 

It is my privilege to welcome you to this Presidential Summit on Entrepreneurship.  This has been a coordinated effort across my Administration, and I want to thank the hard-working folks and leaders at all the departments and agencies who made it possible, and who are here tonight.

 

That includes our United States Trade Representative, Ambassador Ron Kirk.  I especially want to thank the two departments and leaders who took the lead on this Summit—Secretary of Commerce Gary Locke and Secretary of State Hillary Clinton. 

 

We’re joined by members of Congress who work every day to help their constituents realize the American Dream, and whose life stories reflect the diversity and equal opportunity that we cherish as Americans—Nydia Velazquez, Keith Ellison and Andre Carson.

 

Most of all, I want to thank all of you for being part of this historic event.  You have travelled here from across the United States and nearly 60 countries, from Latin America to Africa, Europe to Central Asia, from the Middle East to Southeast Asia. 

 

You bring with you the rich tapestry of the world’s great traditions and cultures.  You carry within you the beauty of different colors and creeds, races and religions.  You are visionaries who pioneered new industries and young entrepreneurs looking to build a business or a community.

 

But we have come together today because of what we share—a belief that we are all bound together by certain common aspirations.  To live with dignity.  To get an education.  To live healthy lives.  Maybe to start a business, without having to pay a bribe.  To speak freely and have a say in how we are governed.  To live in peace and security.  To give our children a better future.

 

But we’re also here because we know that over the years, despite all we have in common, the United States and Muslim communities around the world too often fell victim to mutual mistrust.

 

That is why I went to Cairo nearly one year ago and called for a new beginning between the United States and Muslim communities—a new beginning based on mutual interest and mutual respect.  I knew that this vision would not be fulfilled in a single year, or even several.  But I knew we had to begin and that all of us have responsibilities to fulfill.

 

As President, I’ve worked to ensure that America once again meets its responsibilities, especially when it comes to the security and political issues that have often been a source of tension.  The United States is responsibly ending the war in Iraq, and we will partner with the Iraqi people for their long-term prosperity and security.

 

In Afghanistan, Pakistan and beyond, we’re forging new partnerships to isolate violent extremists, combat corruption and foster the development that improves lives and communities.

 

I say again tonight: despite the inevitable difficulties, so long as I am President, the United States will never waver in our pursuit of a two-state solution that ensures the rights and security of both Israelis and Palestinians.  And around the world, the United States of America will continue to stand with those who seek justice and progress and the human rights and dignity of all people.

 

But even as I committed the United States to addressing these security and political concerns, I also made it clear in Cairo that we needed something else—a sustained effort to listen to each other, to learn from each other, to respect one another.  And I pledged to forge new partnerships, not simply between governments, but between people on the issues that matter most in their daily lives—in your lives.  Many questioned whether this was possible.

 

Yet over the past year, the United States has been reaching out and listening.  We’ve joined interfaith dialogues and held town halls, roundtables and listening sessions with thousands of people around the world, including with many of you.  And like so many people, you’ve extended your hand in return, each in your own way, as entrepreneurs and educators, as leaders of faith and science.  

 

But I have to say, perhaps the most innovative response was from Dr. Naif al-Mutawa of Kuwait, who joins us tonight.  His comic books have captured the imagination of so many young people with superheroes who embody the teachings and tolerance of Islam.  After my speech in Cairo, he had a similar idea.  In his comic books, Superman and Batman reached out to their Muslim counterparts.  And I hear they’re making progress, too.

 

By listening to each other, we’ve been able to partner with each other.  We’ve expanded educational exchanges, because knowledge is the currency of the 21^st century.  Our distinguished Science Envoys have been visiting several of your countries, exploring ways to increase collaboration on science and technology. 

 

We’re advancing global health, including our partnership with the Organization of the Islamic Conference to eradicate polio.  This is just one part of our broader engagement with the OIC, led by my Special Envoy, Rashad Hussain, who joins us tonight.

 

And we’re partnering to expand economic prosperity.  At a government level, I’d note that putting the G-20 in the lead on global economic decision-making has brought more voices to the table—including Turkey, Saudi Arabia, India and Indonesia.  And here today, we’re fulfilling my commitment in Cairo to deepen ties between business leaders, foundations and entrepreneurs in the United States and Muslim communities around the world.

 

Now, I know some have asked—given all the security, political and social challenges that we face, why a summit on entrepreneurship?  Well, the answer is simple. 

 

Entrepreneurship—because you told us that this is an area where we can learn from each other; where America can share our experience as a society that empowers the inventor and the innovator, where men and women can take a chance on a dream—taking an idea that starts around a kitchen table or in a garage, and turning it into a new business and even new industries that can change the world.

 

Entrepreneurship—because throughout history, the market has been the most powerful force the world has ever known for creating opportunity and lifting people out of poverty.

 

Entrepreneurship—because it’s in our mutual economic interest.  Trade between the United States and Muslim-majority countries has grown.  But all this trade, combined, is still only about the same as our trade with Mexico.  So there’s so much more we can do together, in partnership, to foster opportunity and prosperity in all our countries.

 

And social entrepreneurship—because, as I learned as a community organizer in Chicago, real change comes from the bottom up, from the grassroots, starting with the dreams and passion of a single individual serving their community.

 

That’s why you’re here.  We have Jerry Yang, who transformed how we communicate, with Yahoo, as well as entrepreneurs who have opened cybercafés and new forums on the Internet for discussion and development.  Together, you can unleash the technologies that will shape the 21^st century.

 

We have success stories like Dr. Mohamed Ibrahim, who I met earlier, who built a telecommunications empire that empowered people across Africa, and we have aspiring entrepreneurs who are looking to grow their businesses and hire new workers.  Together, you can address the challenges of accessing capital.

 

We have trailblazers like Sheikha Hanadi of Qatar, along with Waed al Taweel, who I met earlier—a 20-year student from the West Bank who wants to build recreation centers for Palestinian youth.  Together, they represent the incredible talents of women entrepreneurs and remind us that countries that educate and empower women are countries that are far more likely to prosper. 

 

We have pioneers like Chris Hughes, who created Facebook, as well as an online community that brought so many young people into my campaign for president—MyBarackObama.com.  And we have people like Soraya Salti of Jordan who are empowering the young men and women who will be the leaders of tomorrow.  Together, they represent the great potential—and expectations—of young people around the world.

 

And we have social entrepreneurs like Tri Mumpuni, who has helped rural communities in Indonesia harness the electricity, and revenues, of hydro-power.  And Andeisha Farid, an extraordinary woman from Afghanistan, who has taken great risks to educate the next generation, one girl at a time.  Together, they point the way to a future where progress is shared and prosperity is sustainable.

 

That is the incredible potential your represent; the future we can seize—together.  Tonight, I’m proud to announce a series of new partnerships and initiatives to do just that.

 

The United States is launching several new exchange programs.  We will bring business and social entrepreneurs from Muslim-majority countries to the United States and send their American counterparts to learn from your countries.  Women in technology fields will have the opportunity to come to the United States for internships and professional development.  And since innovation is central to entrepreneurship, we’re creating new exchanges for science teachers.

 

We’re forging new partnerships in which high-tech leaders from Silicon Valley will share their expertise—in venture capital, mentorship, and technology incubators—with partners in the Middle East, Turkey, and Southeast Asia.

 

Tonight, I can report that the Global Technology and Innovation Fund that I announced in Cairo will potentially mobilize more than $2 billion in investments.  This is private capital, and it will unlock new opportunities for people across our countries in sectors like telecommunications, healthcare, education, and infrastructure.

 

Finally, I’m proud that what we’re creating here, at this Summit, will not end here.  Together, we’ve sparked a new era of entrepreneurship—with events all over Washington this week, and upcoming regional conferences around the world.  And tonight, I am pleased to announce that Prime Minister Erdogan has agreed to host the next Entrepreneurship Summit next year in Turkey.  I thank the Prime Minister—and the people and private sector leaders of Turkey—for helping to sustain the momentum that we’ve unleashed today.   

 

As I said, there are those who questioned whether we could forge this new beginning.  And given the magnitude of the challenges we face in the world, it can be all too tempting to believe that the goodwill and good works or ordinary people are simply insufficient to the task.  But to any who still doubt whether partnerships between people can remake our world, I say look at the men and women here today.

 

Look at the professor from Bangladesh who came up with an idea—micro-finance—that empowered the rural poor across his country, especially women and their children.  That’s the inspiring example of Muhammad Yunus.

 

And look what happened when Muhammad shared his idea with a woman from Pakistan, who has since lifted hundreds of thousands of families and children out of poverty through a foundation whose name literally means “miracle.”  That’s the example of Roshaneh Zafar.

 

And look what happened when that idea spread across the world—including to people like my own mother, who worked with the rural poor from Pakistan to Indonesia.  That simple idea, which began with a single person, has transformed the lives of millions.  That’s the spirit of entrepreneurship.

 

So yes, the new beginning we seek is not only possible, it has already begun.  It exists within each of you, and the millions around the world who believe, like we do, that the future belongs, not to those who would divide us, but to those, like us, who come together; not to those who destroy, but to those, like us, who build; not to those trapped in the past, but to those, like us, who believe, with confidence and conviction, in a future of justice and progress and the dignity of all human beings. 

 

God bless you all, and may God’s peace be upon you.

 

 

###

EMBARGOED: Administration Officials Preview the President's White House to Main Street Tour & Discuss the CEA Report on Strengthening the Rural Economy

The White House

Office of Media Affairs

_______________________________________________________________________________________________

EMBARGOED UNTIL MIDNIGHT

April 26, 2010

 

EMBARGOED: Administration Officials Preview the President’s White House to Main Street Tour & Discuss the CEA Report on Strengthening the Rural Economy

 

WASHINGTON- TODAY, Monday, April 26, at 2:00 PM EDT Christina Romer, Chair of the President’s Council of Economic Advisers and Jen Psaki, White House Deputy Director of Communications will hold a conference call with reporters to preview the next stops on the President’s White House to Main Street Tour in Illinois, Iowa and Missouri and to discuss a new CEA report on the Administration’s policies for Strengthening the Rural Economy.   This call is embargoed until midnight. 

 

To receive an embargoed copy of the report in advance of the conference call, please email media_affairs@who.eop.gov.

 

 

WHAT: Conference Call on the White House to Main Street Tour & new CEA report on the Rural Economy

 

WHO: Christina Romer, Chair of the President’s Council of Economic Advisers and Jen Psaki, White House Deputy Director of Communications

 

WHEN: Monday, April 26, 2010

               2:00 PM EDT

 

DIAL-IN: Media wishing to join the call should dial (800) 288-8968 and ask to join the White House Call.  No passcode is necessary. 

 

###

 

 

 

EMBARGOED: Excerpts From President Obama’s Eulogy at Upper Big Branch Mine Memorial Service

The White House

Office of the Press Secretary

EMBARGOED UNTIL 6 AM EDT

April 25, 2010

 

EMBARGOED: Excerpts From President Obama's Eulogy at Upper Big Branch Mine Memorial Service

 

All the hard work. All the hardship. All the time spent underground. It was all for their families. For a car in the driveway. For a roof overhead. For a chance to give their kids opportunities they never knew; and enjoy retirement with their wives. It was all in the hopes of something better. These miners lived – as they died – in pursuit of the American dream.

…

 

In the days following the disaster, emails and letters poured into the White House. Postmarked from different places, they often begin the same way: "I am proud to be from a family of miners," "I am the son of a coal miner," "I am proud to be a coal miner's daughter." They ask me to keep our miners in my thoughts. Never forget, they say, miners keep America's lights on. Then, they make a simple plea: don't let this happen again.

…

 

We cannot bring back the 29 men we lost. They are with the Lord now. Our task, here on Earth, is to save lives from being lost in another such tragedy. To do what must be done, individually and collectively, to assure safe conditions underground. To treat our miners the way they treat each other – like family. For we are all family. We are Americans.

 

CORRECTED - EMBARGOED: Weekly Address: President Obama Says Promising News From the Auto Industry Doesn't Reduce Need for Wall Street Reform

THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET, SATURDAY, April 24, 2010

WEEKLY ADDRESS: President Obama Says Promising News From the Auto Industry Doesn’t Reduce Need for Wall Street Reform

 

WASHINGTON – In his weekly address, President Obama said that while the government is ending many of emergency programs put in place to stabilize the financial sector and restart lending, Wall Street reform remains urgently needed.  General Motors announced that it has repaid its loan to taxpayers with interest five years ahead of schedule, and Chrysler Financial has already fully repaid with interest its loan as well.  While this is good news, it is also a reminder that the crisis in the auto industry was caused in part by problems in the financial sector.  To help prevent another crisis, Congress needs to enact reforms to hold Wall Street accountable and protect consumers.

 

The full audio of the address is HERE. The video can be viewed online at www.whitehouse.gov.

 

Remarks of President Barack Obama

Saturday, April 24, 2010

Weekly Address

Washington, DC

 

It was little more than one year ago that our country faced a potentially devastating crisis in our auto industry.  Over the course of 2008, the industry shed 400,000 jobs.  In the midst of a financial crisis and deep recession, both General Motors and Chrysler – two companies that for generations were a symbol of America’s manufacturing might – were on the brink of collapse.  The rapid dissolution of these companies – followed by the certain failure of many auto parts makers, car dealers, and other smaller businesses – would have dealt a crippling blow to our already suffering economy.  The best estimates are that more than one million American workers could have lost their jobs. 

 

The previous administration extended temporary loans to both companies.  Even so, when I took office, the situation remained dire.  We had to determine whether or not we could justify additional taxpayer assistance.  After all, many of the problems in the auto industry were a direct result of poor management decisions over decades.  So it wasn’t an easy call.  But we decided that while providing additional assistance was a risk, the far greater risk to families and communities across our country was to do nothing.  We agreed to additional help, but only if the companies and their stakeholders were willing to break with the past.  They had to fundamentally reorganize, with new management that would reexamine the decisions that led to this mess and chart a path toward viability.  I knew this wasn’t a popular decision.  But it was the right one. 

 

So, GM and Chrysler went through painful restructurings: ones that required enormous sacrifices on the part of all involved.  Many believed this was a fool’s errand.  Many feared we would be throwing good money after bad: that taxpayers would lose most of their investment and that these companies would soon fail regardless.  But one year later, the outlook is very different. In fact, the industry is recovering at a pace few thought possible.

 

Just this week we received some encouraging news.  Since General Motors emerged from bankruptcy, the auto industry has actually added 45,000 jobs – the strongest growth in a decade.  And Chrysler announced an operating profit in the first three months of this year.  This is the first time Chrysler has reported a profit since the beginning of the economic crisis.  What’s more, 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. 

 

In addition, Chrysler Financial has already fully repaid with interest the loans it received to support auto financing.  And we are closing the books on the temporary program that helped parts suppliers weather this storm – returning this investment to the Treasury in full, with interest, as well.  Finally, we are bringing to an end many of the emergency programs designed to stabilize the financial sector and restart lending so folks could finance cars and trucks – as well as homes and small businesses. 

 

On Friday, in fact, the Treasury Department informed Congress that this financial rescue – which was absolutely necessary to prevent an even worse economic disaster – will end up costing taxpayers a fraction of what was originally feared.  This is a direct result of the careful management of the investments made by the American people so that we could recoup as many tax dollars as possible – and as quickly as possible.

 

These steps, as well as others we’ve taken, have meant that millions of people are working today who might otherwise have lost their jobs.  But these steps were never meant to be permanent.  As I’ve said many times, I did not run for president to get into the auto business or the banking business.  As essential as it was that we got in, I’m glad to see that we’re 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.  And the economy is on a better footing.  But people are still hurting.  I hear from them just about every day in letters I read and in the towns and cities that I visit.  No matter what the economic statistics say, I won’t be satisfied until folks who need work can find good jobs.  After a recession that stole 8 million jobs, this is gonna take some time.  And this will require that we continue to tackle the underlying problems that caused this turmoil in the first place.  In short, it’s essential that we learn the lessons of this crisis – or we risk repeating it. 

 

Now, part of what led to the crisis in our auto industry – and one of the main causes of the economic downturn – were problems in our financial sector.  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.  Some people simply forgot that behind every dollar traded or leveraged, there is a family looking to buy a house, pay for an education, open a business, or save for retirement.

 

That’s why I went to New York City this week and addressed an audience that included leaders in the financial industry.  And once again I called for reforms to hold Wall Street accountable and to protect consumers.  These reforms would put an end – once and for all – to taxpayer bailouts.  They would bring greater transparency to complex financial dealings.  And they will empower ordinary consumers and shareholders in our financial system.  Folks will get clearer and more concise information when they make financial decisions – instead of having to worry about deceptive fine print.  And shareholders and pension holders will have a stronger voice in the boardrooms of companies in which they invest their savings. 

 

That’s how we’ll restore trust and confidence in our markets.  That’s how we’ll help to put an end to the cycle of boom and bust that we’ve seen.  And that’s how – after two very difficult years – we will not only revive the economy, but help to rebuild it stronger than ever before.

 

Thanks.

 

EMBARGOED: Weekly Address: President Obama Says Promising News From the Auto Industry Doesn't Reduce Need for Wall Street Reform

THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET, SATURDAY, April 24, 2010

WEEKLY ADDRESS: President Obama Says Promising News From the Auto Industry Doesn’t Reduce Need for Wall Street Reform

 

WASHINGTON – In his weekly address, President Obama said that while the government is ending many of emergency programs put in place to stabilize the financial sector and restart lending, Wall Street reform remains urgently needed.  General Motors announced that it has repaid its loan to taxpayers with interest five years ahead of schedule, and Chrysler Financial has already fully repaid with interest its loan as well.  While this is good news, it is also a reminder that the crisis in the auto industry was caused in part by problems in the financial sector.  To help prevent another crisis, Congress needs to enact reforms to hold Wall Street accountable and protect consumers.

 

The full audio of the address is HERE. The video can be viewed online at www.whitehouse.gov.

 

Remarks of President Barack Obama

Saturday, April 24, 2010

Weekly Address

Washington, DC

 

It was little more than one year ago that our country faced a potentially devastating crisis in our auto industry.  Over the course of 2008, the industry shed 400,000 jobs.  In the midst of a financial crisis and deep recession, both General Motors and Chrysler – two companies that for generations were a symbol of America’s manufacturing might – were on the brink of collapse.  The rapid dissolution of these companies – followed by the certain failure of many auto parts makers, car dealers, and other smaller businesses – would have dealt a crippling blow to our already suffering economy.  The best estimates are that more than one million American workers could have lost their jobs. 

 

The previous administration extended temporary loans to both companies.  Even so, when I took office, the situation remained dire.  We had to determine whether or not we could justify additional taxpayer assistance.  After all, many of the problems in the auto industry were a direct result of poor management decisions over decades.  So it wasn’t an easy call.  But we decided that while providing additional assistance was a risk, the far greater risk to families and communities across our country was to do nothing.  We agreed to additional help, but only if the companies and their stakeholders were willing to break with the past.  They had to fundamentally reorganize, with new management that would reexamine the decisions that led to this mess and chart a path toward viability.  I knew this wasn’t a popular decision.  But it was the right one. 

 

So, GM and Chrysler went through painful restructurings: ones that required enormous sacrifices on the part of all involved.  Many believed this was a fool’s errand.  Many feared we would be throwing good money after bad: that taxpayers would lose most of their investment and that these companies would soon fail regardless.  But one year later, the outlook is very different. In fact, the industry is recovering at a pace few thought possible.

 

Just this week we received some encouraging news.  Since General Motors emerged from bankruptcy, the auto industry has actually added 45,000 jobs – the strongest growth in a decade.  And Chrysler announced an operating profit in the first three months of this year.  This is the first time Chrysler has reported a profit since the beginning of the economic crisis.  What’s more, 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. 

 

In addition, Chrysler Financial has already fully repaid with interest the loans it received to support auto financing.  And we are closing the books on the temporary program that helped parts suppliers weather this storm – returning this investment to the Treasury in full, with interest, as well.  Finally, we are bringing to an end many of the emergency programs designed to stabilize the financial sector and restart lending so folks could finance cars and trucks – as well as homes and small businesses. 

 

On Friday, in fact, the Treasury Department informed Congress that this financial rescue – which was absolutely necessary to prevent an even worse economic disaster – will end up costing taxpayers a fraction of what was originally feared.  This is a direct result of the careful management of the investments made by the American people so that we could recoup as many tax dollars as possible – as quickly as possible.

 

These steps, as well as others we’ve taken, have meant that millions of people are working today who might otherwise have lost their jobs.  But these steps were never meant to be permanent.  As I’ve said many times, I did not run for president to get into the auto business or the banking business.  As essential as it was that we got in, I’m glad to see that we’re 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.  I hear from them just about every day in the letters I read and in the cities and towns I visit.  No matter what the economic statistics say, I won’t be satisfied until folks who need work can find good jobs.  After a recession that stole 8 million jobs, this is gonna time.  And this will require that we continue to tackle the underlying problems that caused this turmoil in the first place.  In short, it’s essential that we learn the lessons of this crisis – or we risk repeating it. 

 

Now, part of what led to the crisis in our auto industry – and one of the main causes of the economic downturn – were problems in our financial sector.  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.  Some people simply forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement.

 

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.  These reforms would put an end – once and for all – to taxpayer bailouts.  They would bring greater transparency to complex financial dealings.  And they will empower ordinary consumers and shareholders in our financial system.  Folks will get clearer and more concise information when they make financial decisions – instead of having to worry about deceptive fine print.  And shareholders and pension holders will have a stronger voice in the boardrooms of the companies in which they invest their savings. 

 

That’s how we’ll restore trust and confidence in our markets.  That’s how we’ll help to put an end to the cycles of boom and bust that we’ve seen.  And that’s how – after two very difficult years – we’ll not only revive the economy, but help to rebuild it stronger than ever before.

 

Thanks.

 

EMBARGOED: Remarks of President Obama on Wall Street Reform at Cooper Union

THE WHITE HOUSE

Office of the Press Secretary

_______________________________________________________________________________________

EMBARGOED UNTIL DELIVERY

April 22, 2010

 

Remarks of President Barack Obama – As Prepared for Delivery

Wall Street Reform at Cooper Union

Thursday, April 22, 2010

New York City, New York

 

It's good to be back in the Great Hall at Cooper Union, where generations of leaders and citizens have come to defend their ideas and contest their differences.  It's also good being back in Lower Manhattan, a few blocks from Wall Street, the heart of our nation's financial sector.

 

Since I last spoke here two years ago, our country has been through a terrible trial.  More than 8 million people have lost their jobs.  Countless small businesses have had to shut their doors.  Trillions of dollars in savings has been lost, forcing seniors to put off retirement, young people to postpone college, and entrepreneurs to give up on the dream of starting a company.  And as a nation we were forced to take unprecedented steps to rescue the financial system and the broader economy.

 

As a result of the decisions we made – some which were unpopular – we are seeing hopeful signs.  Little more than one year ago, we were losing an average of 750,000 jobs each month.  Today, America is adding jobs again.  One year ago, the economy was shrinking rapidly.  Today, the economy is growing.  In fact, we've seen the fastest turnaround in growth in nearly three decades.

 

But we have more work to do.  Until this progress is felt not just on Wall Street but Main Street we cannot be satisfied.  Until the millions of our neighbors who are looking for work can find jobs, and wages are growing at a meaningful pace, we may be able to claim a recovery – but we will not have recovered.  And even as we seek to revive this economy, it is incumbent on us to rebuild it stronger than before.  That means addressing some of the underlying problems that led to this turmoil and devastation in the first place. 

One of the most significant contributors to this recession was a financial crisis as dire as any we've known in generations.  And that crisis was born of a failure of responsibility – from Wall Street to Washington – that brought down many of the world's largest financial firms and nearly dragged our economy into a second Great Depression.

 

It was that failure of responsibility that I spoke about when I came to New York more than two years ago – before the worst of the crisis had unfolded.  I take no satisfaction in noting that my comments have largely been borne out by the events that followed.  But I repeat what I said then because it is essential that we learn the lessons of this crisis, so we don't doom ourselves to repeat it.  And make no mistake, that is exactly what will happen if we allow this moment to pass – an outcome that is unacceptable to me and to the American people.

 

As I said two years ago on this stage, I believe in the power of the free market.  I believe in a strong financial sector that helps people to raise capital and get loans and invest their savings.  But a free market was never meant to be a free license to take whatever you can get, however you can get it.  That is what happened too often in the years leading up to the crisis.  Some on Wall Street forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement.  What happens here has real consequences across our country. 

 

I have also spoken before about the need to build a new foundation for economic growth in the 21^st century.  And, given the importance of the financial sector, Wall Street reform is an absolutely essential part of that foundation.  Without it, our house will continue to sit on shifting sands, leaving our families, businesses and the global economy vulnerable to future crises.  That is why I feel so strongly that we need to enact a set of updated, commonsense rules to ensure accountability on Wall Street and to protect consumers in our financial system.

 

A comprehensive plan to achieve these reforms has passed the House of Representatives.  A Senate version is currently being debated, drawing on the ideas of Democrats and Republicans.  Both bills represent significant improvement on the flawed rules we have in place today, despite the furious efforts of industry lobbyists to shape them to their special interests.  I am sure that many of those lobbyists work for some of you.  But I am here today because I want to urge you to join us, instead of fighting us in this effort.  I am here because I believe that these reforms are, in the end, not only in the best interest of our country, but in the best interest of our financial sector.  And I am here to explain what reform will look like, and why it matters. 

 

First, the bill being considered in the Senate would create what we did not have before: a way to protect the financial system, the broader economy, and American taxpayers in the event that a large financial firm begins to fail.  If an ordinary local bank approaches insolvency, we have a process through the FDIC that insures depositors and maintains confidence in the banking system.  And it works.  Customers and taxpayers are protected and the owners and management lose their equity.  But we don't have any kind of process designed to contain the failure of a Lehman Brothers or any of the largest and most interconnected financial firms in our country.

 

That's why, when this crisis began, crucial decisions about what would happen to some of the world's biggest companies – companies employing tens of thousands of people and holding hundreds of billions of dollars in assets – had to take place in hurried discussions in the middle of the night.  That's why, to save the entire economy from an even worse catastrophe, we had to deploy taxpayer dollars.  And although much of that money has now been paid back – and my administration has proposed a fee to be paid by large financial firms to recover the rest – the American people should never have been put in that position in the first place. 

 

It is for this reason that we need a system to shut these firms down with the least amount of collateral damage to innocent people and businesses.  And from the start, I've insisted that the financial industry – and not taxpayers – shoulder the costs in the event that a large financial company should falter.  The goal is to make certain that taxpayers are never again on the hook because a firm is deemed "too big to fail."

 

Now, there is a legitimate debate taking place about how best to ensure taxpayers are held harmless in this process.  But what is not legitimate is to suggest that we're enabling or encouraging future taxpayer bailouts, as some have claimed.  That may make for a good sound bite, but it's not factually accurate.  In fact, the system as it stands is what led to a series of massive, costly taxpayer bailouts.  Only with reform can we avoid a similar outcome in the future.  A vote for reform is a vote to put a stop to taxpayer-funded bailouts.  That's the truth. 

 

And these changes have the added benefit of creating incentives within the industry to ensure that no one company can ever threaten to bring down the whole economy.  To that end, the bill would also enact what's known as the Volcker Rule: which places some limits on the size of banks and the kinds of risks that banking institutions can take.  This will not only safeguard our system against crises; this will also make our system stronger and more competitive by instilling confidence here at home and across the globe.  Markets depend on that confidence.  Part of what led to the turmoil of the past two years was that, in the absence of clear rules and sound practices, people did not trust that our system was one in which it was safe to invest or lend.  As we've seen, that harms all of us.  By enacting these reforms, we'll help ensure that our financial system – and our economy – continues to be the envy of the world.

 

Second, reform would bring new transparency to many financial markets.  As you know, part of what led to this crisis was firms like AIG and others making huge and risky bets – using derivatives and other complicated financial instruments – in ways that defied accountability, or even common sense.  In fact, many practices were so opaque and complex that few within these companies – let alone those charged with oversight – were fully aware of the massive wagers being made.  That's what led Warren Buffett to describe derivatives that were bought and sold with little oversight as "financial weapons of mass destruction."  And that's why reform will rein in excess and help ensure that these kinds of transactions take place in the light of day.

 

There has been a great deal of concern about these changes.  So I want to reiterate: there is a legitimate role for these financial instruments in our economy.  They help allay risk and spur investment.  And there are a great many companies that use these instruments to that end – managing exposure to fluctuating prices, currencies, and markets.  A business might hedge against rising oil prices, for example, by buying a financial product to secure stable fuel costs.  That's how markets are supposed to work.  The problem is, these markets operated in the shadows of our economy, invisible to regulators and to the public.  Reckless practices were rampant.  Risks accrued until they threatened our entire financial system.

 

That's why these reforms are designed to respect legitimate activities but prevent reckless risk taking.  And that's why we want to ensure that financial products like standardized derivatives are traded in the open, in full view of businesses, investors, and those charged with oversight.  I was encouraged to see a Republican Senator join with Democrats this week in moving forward on this issue.  For without action, we'll continue to see what amounts to highly-leveraged, loosely-monitored gambling in our financial system, putting taxpayers and the economy in jeopardy.  And the only people who ought to fear this kind of oversight and transparency are those whose conduct will fail its scrutiny. 

 

Third, this plan would enact the strongest consumer financial protections ever.  This is absolutely necessary.  Because this financial crisis wasn't just the result of decisions made in the executive suites on Wall Street; it was also the result of decisions made around kitchen tables across America, by folks taking on mortgages and credit cards and auto loans.  And while it's true that many Americans took on financial obligations they knew – or should have known – they could not afford, millions of others were, frankly, duped.  They were misled by deceptive terms and conditions, buried deep in the fine print.

 

And while a few companies made out like bandits by exploiting their customers, our entire economy suffered.  Millions of people have lost homes – and tens of millions more have lost value in their homes.  Just about every sector of our economy has felt the pain, whether you're paving driveways in Arizona or selling houses in Ohio, doing home repairs in California or using your home equity to start a small business in Florida.

 

That's why we need to give consumers more protection and power in our financial system.  This is not about stifling competition or innovation.  Just the opposite: with a dedicated agency setting ground rules and looking out for ordinary people in our financial system, we'll empower consumers with clear and concise information when making financial decisions.  Instead of competing to offer confusing products, companies will compete the old-fashioned way: by offering better products.  That will mean more choices for consumers, more opportunities for businesses, and more stability in our financial system.  And unless your business model depends on bilking people, there is little to fear from these new rules.

 

Finally, these Wall Street reforms will give shareholders new power in the financial system. They'll get a say on pay: a voice with respect to the salaries and bonuses awarded to top executives.  And the SEC will have the authority to give shareholders more say in corporate elections, so that investors and pension holders have a stronger role in determining who manages the companies in which they've placed their savings.

 

Now, Americans don't begrudge anybody for success when that success is earned.  But when we read in the past about enormous executive bonuses at firms even as they were relying on assistance from taxpayers, it offended our fundamental values.

 

Not only that, some of the salaries and bonuses we've seen created perverse incentives to take reckless risks that contributed to the crisis.  It's what helped lead to a relentless focus on a company's next quarter, to the detriment of its next year or decade.  And it led to a situation in which folks with the most to lose – stock and pension holders – had the least to say in the process. That has to change.

 

I'll close by saying this.  I have laid out a set of Wall Street reforms.  These are reforms that would put an end to taxpayer bailouts; that would bring complex financial dealings out of the shadows; that would protect consumers; and that would give shareholders more power in the financial system.  But we also need reform in Washington.  And the debate over these changes is a perfect example.

 

We've seen battalions of financial industry lobbyists descending on Capitol Hill, as firms spend millions to influence the outcome of this debate.  We've seen misleading arguments and attacks designed not to improve the bill but to weaken or kill it.  And we've seen a bipartisan process buckle under the weight of these withering forces, even as we have produced a proposal that is by all accounts a common-sense, reasonable, non-ideological approach to target the root problems that led to the turmoil in our financial sector. 

 

But I believe we can and must put this kind of cynical politics aside.  That's why I am here today.  We will not always see eye to eye.  We will not always agree.  But that does not mean we have to choose between two extremes.  We do not have to choose between markets unfettered by even modest protections against crisis, and markets stymied by onerous rules that suppress enterprise and innovation.  That's a false choice.  And we need no more proof than the crisis we've just been through. 

 

There has always been a tension between the desire to allow markets to function without interference – and the absolute necessity of rules to prevent markets from falling out of balance.  But managing that tension, one we've debated since our founding, is what has allowed our country to keep up with a changing world.  For in taking up this debate, in figuring out how to apply our well-worn principles with each new age, we ensure that we do not tip too far one way or the other – that our democracy remains as dynamic as the economy itself.  Yes, the debate can be contentious.  It can be heated.  But in the end it serves to make our country stronger.  It has allowed us to adapt and thrive. 

 

I read a report recently that I think fairly illustrates this point.  It's from Time Magazine.  And I quote: "Through the great banking houses of Manhattan last week ran wild-eyed alarm.  Big bankers stared at one another in anger and astonishment.  A bill just passed … would rivet upon their institutions what they considered a monstrous system…  Such a system, they felt, would not only rob them of their pride of profession but would reduce all U.S. banking to its lowest level."  That appeared in Time Magazine – in June of 1933.  The system that caused so much concern and consternation?  The Federal Deposit Insurance Corporation – the FDIC – an institution that has successfully secured the deposits of generations of Americans. 

 

In the end, our system only works – our markets are only free – when there are basic safeguards that prevent abuse, that check excess, that ensure that it is more profitable to play by the rules than to game the system.  And that is what these reforms are designed to achieve: no more, no less.  Because that is how we will ensure that our economy works for consumers, that it works for investors, that it works for financial institutions – that it works for all of us. 

 

This is the central lesson not only of this crisis but of our history.  It's what I said when I spoke here two years ago.  Ultimately, there is no dividing line between Main Street and Wall Street.  We rise or we fall together as one nation.  So I urge you to join me – to join those who are seeking to pass these commonsense reforms.  And I urge you to do so not only because it is in the interests of your industry, but because it is in the interests of our country.

 

Thank you.  God bless you.  And may God bless the United States of America.

 

 

##

EMBARGOED: WEEKLY ADDRESS: President Obama Says We Must Move Forward on Wall Street Reform

 

THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________________
EMBARGOED UNTIL 6:00 AM ET, SATURDAY, April 17, 2010

WEEKLY ADDRESS: President Obama Says We Must Move Forward on Wall Street Reform

 

WASHINGTON – In his weekly address, President Barack Obama said that in the wake of the economic crisis Wall Street reform is too important an issue for inaction.  The plan moving through Congress will end bailouts, hold Wall Street accountable, and protect consumers, taxpayers and the economy from the kind of abuses that helped bring about the economic crisis.  Every day without reform, those abuses, and the system which allowed them, remain in place.  It is time to move forward with real reforms for Wall Street.

 

The audio and video will be available online at www.whitehouse.gov at 6:00 am ET, Saturday, April 17, 2010.

 

Remarks of President Barack Obama

As Prepared for Delivery

The White House

April 17, 2010

 

There were many causes of the turmoil that ripped through our economy over the past two years.  But above all, this crisis was caused by failures in the financial industry.  What is clear is that this crisis could have been avoided if Wall Street firms were more accountable, if financial dealings were more transparent, and if consumers and shareholders were given more information and authority to make decisions.

 

But that did not happen.  And that’s because special interests have waged a relentless campaign to thwart even basic, common-sense rules – rules to prevent abuse and protect consumers.  In fact, the financial industry and its powerful lobby have opposed modest safeguards against the kinds of reckless risks and bad practices that led to this very crisis. 

 

The consequences of this failure of responsibility – from Wall Street to Washington – are all around us: 8 million jobs lost, trillions in savings erased, countless dreams diminished or denied.  I believe we have to do everything we can to ensure that no crisis like this ever happens again.  That’s why I’m fighting so hard to pass a set of Wall Street reforms and consumer protections.  A plan for reform is currently moving through Congress.

 

Here’s what this plan would do.  First, it would enact the strongest consumer financial protections ever.  It would put consumers back in the driver’s seat by forcing big banks and credit card companies to provide clear, understandable information so that Americans can make financial decisions that work best for them. 

 

Next, these reforms would bring new transparency to financial dealings.  Part of what led to this crisis was firms like AIG and others making huge and risky bets – using things like derivatives – without accountability.  Warren Buffett himself once described derivatives bought and sold with little oversight as “financial weapons of mass destruction.”  That’s why through reform we’d help ensure that these kinds of complicated financial transactions take place on an open market.  Because, ultimately, it is a marketplace that is open, free, and fair that will allow our economy to flourish.

 

We would also close loopholes to stop the kind of recklessness and irresponsibility we’ve seen.  It’s these loopholes that allowed executives to take risks that not only endangered their companies, but also our entire economy.  And we’re going to put in place new rules so that big banks and financial institutions will pay for the bad decisions they make – not taxpayers.  Simply put, this means no more taxpayer bailouts.  Never again will taxpayers be on the hook because a financial company is deemed “too big to fail.”

 

Finally, these reforms hold Wall Street accountable by giving shareholders new power in the financial system.  They’ll get a say on pay: a vote on the salaries and bonuses awarded to top executives.  And the SEC will ensure that shareholders have more power in corporate elections, so that investors and pension holders have a stronger voice in determining what happens with their life savings.

 

Now, unsurprisingly, these reforms have not exactly been welcomed by the people who profit from the status quo – as well their allies in Washington.  This is probably why the special interests have spent a lot of time and money lobbying to kill or weaken the bill.  Just the other day, in fact, the Leader of the Senate Republicans and the Chair of the Republican Senate campaign committee met with two dozen top Wall Street executives to talk about how to block progress on this issue.

 

Lo and behold, when he returned to Washington, the Senate Republican Leader came out against the common-sense reforms we’ve proposed.  In doing so, he made the cynical and deceptive assertion that reform would somehow enable future bailouts – when he knows that it would do just the opposite.  Every day we don’t act, the same system that led to bailouts remains in place – with the exact same loopholes and the exact same liabilities.  And if we don’t change what led to the crisis, we’ll doom ourselves to repeat it.  That’s the truth.  Opposing reform will leave taxpayers on the hook if a crisis like this ever happens again.

 

So my hope is that we can put this kind of politics aside.  My hope is that Democrats and Republicans can find common ground and move forward together.  But this is certain: one way or another, we will move forward.  This issue is too important.  The costs of inaction are too great.  We will hold Wall Street accountable.  We will protect and empower consumers in our financial system. That’s what reform is all about. That’s what we’re fighting for.  And that’s exactly what we’re going to achieve.

 

Thank you.