REUTERS: WASHINGTON (Reuters) - President Barack Obama will try on Monday to revive a stalled push for stricter oversight of Wall Street, using the anniversary of Lehman Brothers' collapse to argue for sweeping regulatory changes.
Obama's wide-ranging economic address in New York will also discuss plans to unwind the government's involvement in the financial sector and call upon Wall Street firms to take responsibility and avoid reckless behavior. He is to speak at 12:10 p.m. EDT.
Gaps in the regulation of U.S. banks and capital markets have been blamed for the subprime mortgage crisis and global financial chaos triggered after Lehman filed for bankruptcy on September 15, 2008.
Obama and other backers of a financial overhaul say new rules are crucial to heading off another catastrophe.
But as Obama prepares to deliver the speech at the historic Federal Hall in the heart of Wall Street, the regulatory reform effort has hit resistance in Congress, casting doubt on Obama's goal of enacting the legislation by year end.
In addition to jumpstarting the regulatory reform legislation, Obama will seek to take credit for the relative calm that has settled over the markets in the aftermath of the worst financial crisis since the 1930s Great Depression.
Obama's battle to pass major health care legislation has taken a toll on his popularity but he hopes to get a boost from signs the economy is starting to improve.
Treasury Secretary Timothy Geithner last week told a congressional panel that the economy, while still ailing, was in far better shape than a year ago and the government could begin unwinding some of the massive support given to markets. >>> Caren Bohan | Monday, September 14, 2009
