Bringing his message right to their doorstep, President Obama yesterday told Wall Street bankers in no uncertain terms to support sweeping regulatory reform, saying the industry has nothing to fear “unless your business model depends on bilking people.”
More than three dozen of the city’s leading industry executives gathered in an audience of 700 at Cooper Union and listened grimly as the president denounced their “battalions of lobbyists,” suggested millions of Americans had been “duped” by deceptive mortgages, and ripped enormous bonuses as offensive to America’s “traditional values.”
Obama’s speech came as:
* Goldman Sachs CEO Lloyd Blankfein — whose firm had been the target of major charges by the Securities and Exchange Commission just days earlier — sat in the crowd.
* Mayor Bloomberg, the leading defender of Wall Street, said later he agreed with “90 percent” of the president’s remarks, but still had some lingering concerns.
* Senate Democratic leader Harry Reid prepared to bring the overhaul legislation to the floor on Monday.
In his address, Obama, riding a crest of populist sentiment against Wall Street, insisted that embracing the reforms is patriotic.
“I urge you to do so not only because it is in the interests of your industry, but because it is in the interests of our country,” he said.
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The heavily partisan audience, which included large contingents of Cooper Union students and Democratic officials, applauded at every significant turn in the 25-minute speech.
But many of the Wall Street leaders, grouped together near the stage, didn’t.
A Democratic official who could see Bloomberg in the front row reported that “he clearly didn’t clap a number of times.”
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But the mayor, who has been a lone voice warning against restrictions that might cripple the city’s most important industry, said later that “we need a bill and the president and I probably agree on about 90 percent of the things.”
Even when he was on the attack, Obama was careful not to assess group blame — frequently employing the word “some” when decrying those who broke the rules or misled the public.
“Given the importance of the financial sector, Wall Street is an absolutely essential part,” the president said, extending an olive branch.
“Ultimately, there is no dividing line between Main Street and Wall Street. We rise or we fall together as one nation.”
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At times, Obama directly addressed the contingent from Wall Street.
“I am sure that some of those lobbyists [fighting the proposed rules] work for you and they’re doing what they’re paid to do,” Obama said.
“But I am here today because I want to urge you to join us, instead of fighting us in this effort.”
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While Democratic sponsors of the financial legislation in the Senate held out hope of winning Republican support to get it passed, Reid (D-Nev.) told reporters he’s prepared to hold a procedural test vote on Monday if bipartisan negotiations failed to reach agreement.
For security reasons, the audience had to sit in place for about an hour waiting for Obama’s arrival.
Blankfein made the most of the time by chatting with elected officials and chatting up the Rev. Al Sharpton.