You just watched a video in which President Obama announces his plan for financial regulatory reform. (ANSWER)

President Obama indicates that there are several reasons for the financial crisis. According to the president, one reason is irresponsible practices by financial institutions. The amount of risk involved in newly created investments was high, and few investors or consumers understood this. These types of investments were made possible due to a lack of regulation within the system.

True. One of the major reasons that led to the financial crisis of 2007-8 was irresponsible practices by financial institutions such as betting against their clients. Financial institutions repackaged and sold toxic assets some of which were given a good credit rating. Investors did not know what they were getting into and when the credit rating of the securities changed, the system was plunged into chaos

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jayilych4real jayilych4real · Answer 2 · 2021-11-02T17:40:37+01:00

The statement made by President Obama about the financial crisis which was caused by the irresponsible practices of financial institutions is:

True

According to the statements made by the President Barack Obama about his plans for financial regulation, he informed the American public that the current financial crisis was caused by financial institutions who failed to properly explain the level of risk for the investors.

As a result of this, we can see that this statement is true because of the financial crisis in the United States of America was because the institutions sold to their investors bad assets which was repackaged to seem like a good investment.