Obama Calls for Closer Scrutiny of Credit Agencies (Update1)
By Peter Cook and Kim Chipman
Sept. 16 (Bloomberg) -- Democratic presidential nominee Barack Obama said investors shouldn't expect taxpayers to bail them out when financial markets are in turmoil and proposed closer scrutiny of credit-ratings services.
The Illinois senator, reacting to the collapse of New York- based Lehman Brothers Holdings Inc., said regulation of Wall Street needs to ``catch up'' with changes in financial markets.
``Whether it's Freddie Mac or some of the investment banks, at some level what you had is a situation in which investors and management at these firms were taking extraordinary risks with enormous upside when the market was good, but you can't have a situation where you expect the taxpayers to foot the bill when times are bad,'' Obama said in an interview yesterday with Bloomberg Television.
By Peter Cook and Kim Chipman
Sept. 16 (Bloomberg) -- Democratic presidential nominee Barack Obama said investors shouldn't expect taxpayers to bail them out when financial markets are in turmoil and proposed closer scrutiny of credit-ratings services.
The Illinois senator, reacting to the collapse of New York- based Lehman Brothers Holdings Inc., said regulation of Wall Street needs to ``catch up'' with changes in financial markets.
``Whether it's Freddie Mac or some of the investment banks, at some level what you had is a situation in which investors and management at these firms were taking extraordinary risks with enormous upside when the market was good, but you can't have a situation where you expect the taxpayers to foot the bill when times are bad,'' Obama said in an interview yesterday with Bloomberg Television.
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