Barack Obama advisor warns Wall Street on tougher regulation

19 October 2009

Barack Obama's economic advisor Lawrence Summers has warned top financial institutions in the US that they cannot fight against proposed regulatory overhauls.

Mr Summers, who is chairman of the National Economic Council, told an audience of financial executives in New York that Wall Street had been part of the problem in the financial crisis and now must be part of the solution.

He told the executives that they had little choice but to accept reform.

"There is no financial institution that exists today that is not the direct or indirect beneficiary of trillions of dollars of taxpayer support," Mr Summers said.

He added that it was the duty of the financial sector and the government to build a stronger foundation for the US economy.

Last week, Mr Summers said he believed the worst of the financial crisis was over and the top priority for the White House now is to tackle growing unemployment levels.

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