It has been one year since the collapse of American financial firm, Lehman Brothers, and US President Barrack Obama has delivered a stern warning to his nation that financial gambling will not be tolerated.

With the effects of the Global Financial Crisis beginning to show, the Lehman Brothers firm filed for Chapter 11 bankruptcy protection last year following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies.

The bankruptcy was the largest in US history and caused a rippling effect in the country’s economy and is believed to have been a major factor contributing to the current recession.

Obama used the speech, made to 150 Wall Street executives, to push forward his new financial proposal that would give the Federal Reserve new powers to monitor big financial firms. A new consumer protection agency would also be created.

But despite the recent slight signs of recovery form the economic crash caused by the Lehman Brothers, President Obama said Americans had to learn from last years mistake and that reckless financial behaviour would not be tolerated.

“Normalcy cannot lead to complacency,” Obama said.

“Unfortunately, there are some in the financial industry who are misreading this moment. Instead of learning the lessons of Lehman and the crisis from which we’re still recovering, they’re choosing to ignore those lessons.”

“Hear my words: We will not go back to the days of reckless behaviour and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses.”

While many economic experts believe the worst of the recession has passed, America, and the majority of the world is still in economic trouble and economic supervision by governments seems to be the right step in overcoming the problems.

WHAT’S YOUR OPINION?

Do you agree with what was said in Obama’s Speech?

How much longer will it be before we overcome the Global Financial Crisis?