Talk Radio News Service: News, Politics, Media

By Michael Ruhl, University of New Mexico - Talk Radio News Service

On the South Lawn of the White House today President Barack Obama said that the government must establish a regulatory framework to prevent future irresponsible activities such as those seen recently by AIG. Obama said that AIG used taxpayer funds inappropriately. He went on that the government is considering a power authority similar to that of the FDIC, which could exercise power proactively while moving to protect creditors, depositors, and consumers alike. The President said he has been working with Congressional leaders to this end, specifically with House Financial Services Committee Chairman Barney Frank (D-Mass.).

President Barack Obama said that although people in his administration did not cause AIG to inappropriately use taxpayers money, he himself was responsible for AIG’s overindulgences, because as president, “the buck stops with me”. Obama chagrined at having to “clean up after AIG’s mess”, and acknowledged that the American people are right to be upset with the situation. The president suggested that the country channel this anger to productive ends.

When questioned about recent calls for the resignation of Treasury Secretary Timothy Geithner, Obama said that Geithner has his complete confidence, and is “making all the right moves” after having been placed in a tough position.