The lesson of 15 September

The speech, which give U.S. President Barack Obama to the management of the Federal Reserve yesterday, is one of the Papers of British stamp issues.

One year after the failure of the fourth-largest U.S. bank Lehman Brothers „(Lehman Brothers), he warned banks not to forget the lessons learned through the financial crisis, to limit excessive premium for the bankers and to comply with new rules for financial markets because otherwise can cause recession.

The president spoke with instructive ton before representatives of the financial industry in the building of the Federal Reserve, which is two steps away from the stock exchange on Wall Street – and there is good reason for it, said The Independent.

One year after the onset of the financial meltdown the U.S. government still owns several giant financial institutions like the insurance company AIG „(AIG), and mortgage houses“ Fannie Mae „(Fannie Mae) and Freddie Mac“ (Freddie Mac ). Moreover, the state holds large stakes in many large American banks. The financial system was brought to the brink of collapse after years of inflated mortgages, which ended with the sudden collapse of confidence and ensuing panic. To save the system was spent trillions of dollars collected from taxpayers, notes The Independent.

The purpose of the President’s appearance in the heart of the financial capital of the United States, however, was not only to miss the steam of popular discontent against Wall Street, which this year lobbying more heavily against the strengthening of financial market regulation. In the midst of fierce battle for reform of the health system, which led to a fall in its ratings, Obama is trying to raise awareness of its achievements in stabilizing the financial system, said The Independent.

President’s speech symbolized a new role as Washington’s chief officer, who will monitor compliance with the rules of Wall Street, said the Times. His tongue was most acute when the topic touched on remuneration of financiers. However, it seems to agree that if you have a ceiling on salaries, will be achieved the opposite effect, except that such a decision would be almost impossible politically. Among the audience in the hall of the Federal Reserve had a few directors of major banks and some of them did their best to give your kind words of support that the president, although they contain sharp criticism, notes the Times.

Although the appeal of Obama as a whole was determined by the U.S. media as „conservative victory speech, experts warn that the biggest economy in the world is far overcame their problems, notes the Guardian. Over 450 U.S. banks and mortgage companies went bankrupt and another 416 are placed under special surveillance list of problem companies. Unemployment in the United States is at its highest level since 1983. 9.7% of working-age population, or 6.9 million people were without work. The Guardian quoted economist Nouri Rubin, known as „Doctor disaster“ because of his accurate prediction of the financial crisis. According Rubies large losses from credit cards, student loans, commercial property and leases for cars continues to poison the financial system and prevent the return to economic growth.

UBLIC not forgive bankers to involve the economic crisis, notes the Guardian. A study commissioned by the BBC, made in the twenty most developed countries shows that only 32 percent of respondents were satisfied with the actions taken by banks to overcome the crisis.

Saving the banks did not mean that must be saved the bankers, their shareholders and debenture holders, Joseph Stiglitz said in another article in The Guardian. You may save the banks as institutions, even if we were playing on the normal rules of capitalism, which states that where a company can not fulfill its obligations to its creditors, shareholders lose everything, says Stiglitz.

In his speech, Obama defended his government response to the financial crisis, but the truth is that one year after the bankruptcy of Lehman Brothers, Washington has not taken adequate action to reduce the size of the institutions, their interdependence and the tendency to assume risks. Indeed, the government allowed banks to become even bigger, while unable to cut the practice of giving huge bonuses to the financiers, Stiglitz wrote in The Guardian. The bankruptcy of Lehman Brothers was a symptom of a poorly functioning financial system and failed system of financial regulation. He should have taught us that it is easier and certainly cheaper to prevent problems rather than trying to solve them when out of control, Stiglitz concludes in his article in The Guardian.

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