A year after the start of the financial crisis in the US, President Barack Obama warns of "complacency" that might lead the country to an economic standstill.
Speaking on Monday in the US financial hub, Wall Street, to mark the first anniversary of the latest US economic downturn sparked by the collapse of one of America's oldest commercial banks -- Lehman Brothers -- Obama called for an imminent launch of regulatory bodies in order to implement 'effective' oversight of America's Treasury on the financial industry without holding back capital market and enterprises.
The US president told financial executives present at New York's Federal Hall that the old appeals to the unregulated free market system have jeopardized the US economy, putting it on the verge of "collapse."
He defended his controversial economic reforms that favor more government spending to help move the clogged credit market and called for "strong" regulations intended to discourage creditors who lend without specifying loopholes set in their loan contracts.
Obama urged the nation to learn from past lessons of Lehman Brothers and other fiscal institutes that filed for the so-called chapter 11 bankruptcy protections and called on the financial sector to join efforts with the federal government in an attempt "to update the rules and regulatory structure to meet the challenges of this new century."
Obama also made a reference to the insolvency of Lehman Brothers and noted that "history can not be allowed to repeat itself." The 150-year-old bank went down on September 15, 2008 only a day after Merrill Lynch, a global financial services company, was taken over by Bank of America, the largest US commercial bank.
The US president stressed that his major overhaul bids to fully restructure US economic statutes are meant to bring "transparency and accountability" to the broader financial system.
He warned financiers against 'recklessness' in their transactions and held out the olive branch to those observing the law.
Obama blamed the current economic woes on both the US citizens for their indiscretion in seeking the so-called easy credit without considering the consequences and creditors "who did not always tell the truth."
He informed the US public of the instigation of 'Consumer Financial Protection Agency' capable of curbing deception in the financial market.
Obama went further to secure large banks against risks by introducing new 'Resolution Authorities' along the Federal Reserve and the Treasury in a bid to stave off fiscal hazards that might threaten pillars of US economy such as the large insurance group known as American International Group (AIG).
He also asked world leaders to pitch in with his economic revamp polices in order to prevent another economic meltdown.
The US president rejected charges of promoting a leftist agenda in his economic plans and called on the Congress to pass his financial overhaul bids.
Meanwhile, economists say that Obama's efforts to fix the US economy would push the country's liabilities to its limits as the government has spent public money on bailout schemes and debt defaults instead of being invested in productive projects.
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