On the first anniversary of the collapse of the investment bank Lehman Brothers, and the start of the global financial crisis, there is a warning that lessons have not been learned by all.
President Obama has been to the New York financial district to argue for sweeping regulatory changes. He said: “The only way to avoid a crisis of this magnitude is to ensure that large firms can’t take risks that threaten our entire financial system, and to make sure they have the resources to weather even the worst of economic storms.” But whether Obama’s proposals will get through Congress in their current form, and be accepted by the industry, is far from certain. Experts say Wall Street will not be welcoming reform. Financial advisor Hugh Johnson said: “I think it’s accepting the fact that it’s going to have much more intense oversight, much more intense regulation. But I don’t think it’s embracing it. Wall Street never embraces any regulation of any magnitude from the federal government.” Obama warned financial firms to heed the lessons of the Lehman Brothers’ collapse, saying some were choosing to ignore them. He also confirmed he was not in favour of a second economic stimulus package, but is “monitoring the situation”.