Obama prepares to put the brakes on Wall Street - WMBFNews.com, Myrtle Beach/Florence SC, Weather

Obama prepares to put the brakes on Wall Street

Washington -

(NBC) - In New York, President Barack Obama has outlined new rules for Wall Street to protect consumers, avoid taxpayer bailouts and put risky investments called derivatives through a clearinghouse, such as the Stock Market.

"If you're going to operate with derivatives, you've got to make sure that you are an open book, everybody knows what's going to' on," said Obama.

Democrats are set to introduce their plan Thursday.

Arkansas Senator Blanche Lincoln said, "It is time for bold change and big decisions."

Republicans seem ready to compromise.

Alabama Senator Richard Shelby said, "We're not there yet, but I think we're closer than we've ever been."

But there are still big differences. Republicans want to scrap a 50 billion dollar bailout fund, even if banks pay for it. They claim this plan creates an even bigger government bailout.

House Minority Leader John Boehner said, "When you look at the authority given to the FDIC and Treasury, they've got the ability to go in and bail out anybody they deem in need of it."

Now some lawmakers are questioning the timing, just days after fraud charges against Goldman Sachs.

California Representative Darrell Issa said, "How they did it, when they did it, it smells and that's why we're asking."

President Obama says the White House was hands off and, in fact, found out about those charges on CNBC.

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