Transcript:

Bret Bair: With his signature issue of healthcare reform in disarray, President Obama today ramped up his push for another kind of reform in the financial sector. White House Correspondent Wendell Goler reports on the newest target for the Obama Administration.

Wendell Goler: Two days after the Massachusetts voters complicated his legislative agenda, President Obama addressed what he believes is the root cause of the recession he inherited.

President Obama: While the financial system is stronger than a year ago, it's still operating turbid rules that led to its near collapse.

Wendell Goler: Backed by a former head of the Federal Reserve appointed by Jimmy Carter and a Securities and Exchange Commission head who was appointed by George W. Bush, Obama proposed restrictions on risky investments by commercial banks and plan to keep them from becoming so big their failure would threaten the financial system. Aides deny there was politics in the decision.

Robert Gibbs: This was not done as a result of anything that happened this week.

Wendell Goler: They said the restrictions aren't punishment, but don't deny frustration of voters makes Wall Street a convenient target.

David Axelrod: They see irresponsible behavior all around them on Wall Street and Washington and they're angry about it.

Wendell Goler: Bankers were neither pleased nor surprised.

Rob Nichols: We don't see eye to eye on the specific elements. It's no secret that some of the large institutions are not the most popular institutions in the United States right now.

Wendell Goler: Republicans were quick to criticize. Virginia Congressman Eric Cantor saying, "The President's proposal will do nothing to help put Americans back to work or help small businesses hire more workers."  Both Cantor and Nichols asked why the proposal included no reforms for Fannie Mae and Freddie Mac. Some of the big banks that weathered the crisis, Nichols, said, absorbed the failing banks and kept it from being worse.

Rob Nichols: They were able to do that, provide instruments of stability in the midst of the storm.

Wendell Goler: But some of those banks too got billions in bail-outs and officials say that can't be repeated.

Austan Goolsbee: So there is no too big to fail with resolution authority. When they mess up, they die.

Wendell Goler: Aides say all the President's economic advisors endorse the bank restrictions, though some reportedly including Treasury Secretary Geithner aren't convinced that risky investing by banks as opposed to by the client caused the current recession. They are convinced it could cause the next one. The U.S. banks say the restriction will give foreign banks the advantage. Bret?