Obama warns he will veto reform without tight derivative controls

President Barack Obama warned anxious congressional Democrats on Friday that he would veto any bill that does not "bring the derivatives market under control."

Obama, meeting with the presidential economic recovery advisory board (PERAB) at the White House, said he would wait to see what Congress passes. But Obama and his aides have repeatedly signaled an unwillingness to compromise on the legislation.

On a day when Goldman Sachs was charged with fraud, Obama made clear that he will cast dissenting Republicans as being on the side of Wall Street against Main Street.

In mentioning the "armies" of lobbyists opposed to reform, Obama noted that "they have found some willing allies on the other side of the aisle in Congress."

"Anyone who opposes this reform is going to be leaving taxpayers on the hook if a crisis like the one we've just seen ever happens again," Obama said. "And I consider that unacceptable."

The president said he continues to hope for a bipartisan bill, but he said embracing bipartisanship does not mean accepting a bill with "lobbyist-driven loopholes that put American taxpayers at risk."

"That would not be real reform," Obama said.

Obama said he and his advisers would spend much of the remainder of the meeting discussing ways to increase American exports in the coming years.

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