Obama vows to fight reckless risk-takers to stabilise market

US president Barack Obama has pledged to work with leaders of the G-20 countries to bring back stability to the financial market and take appropriate measures to see that the crisis will not happen again.

''At next week's G-20 summit, we'll discuss some of the steps that are required to safeguard our global financial system and close gaps in regulation around the world - gaps that permitted the kinds of reckless risk-taking and irresponsibility that led to the crisis,'' Obama said in his weekly radio address today.

The two-day G-20 summit in Pittsburgh, scheduled for next Thursday, follows the July summit in London.
 
"We cannot allow the thirst for reckless schemes that produce quick profits and fat executive bonuses to override the security of our entire financial system and leave taxpayers on the hook for cleaning up the mess," the president said.

"While many folks took on more than they knew they could afford, too often folks signed contracts they didn't fully understand, offered by lenders who didn't always tell the truth. That's why we need clear rules, clearly enforced," he said.

He noted that the world's major economies had made substantial progress in the recent months, though the unemployment front has not stabilised.

The good news is that we've made real progress since last time we met - here at home and around the world," Obama said.
 
Financial crises know no borders, Obama said, adding that he would continue working with world leaders both at the upcoming summit and beyond to build on the progress already made.