U.S. President Barack Obama urged Wall Street to support his financial reforms that will enhance accountability of the financial sector during a speech delivered?in New York?on Thursday.

U.S. President Barack Obama speaks to the media at the Rose Garden of the White House in Washington D.C., capital of the United States, April 9, 2010. [Xinhua File Photo]

Speaking at the Cooper Union College in lower Manhattan, a few blocks away from Wall Street, Obama said that financial reforms are not only in the best interest of the country, but in the best interest of our financial sector.

"I want to urge you to join us, instead of fighting us in this effort," he said.

Recapping what he discussed in the last speech given at Cooper Union in 2008 before the crisis unfolded, Obama emphasized that Wall Street reform is "an absolutely essential part of the foundation for economic growth," given the importance of the financial sector.

In his latest effort to promote financial reforms for public support, Obama started travelling around the country this week, the same time as the Senate is debating on the financial regulation reform bill.

Obama said the bill would create a way to protect the financial system, the broader economy, and taxpayers in the event that a large financial firm begins to fail.

Obama pointed out that there currently is no process designed to contain the failure of a Lehman Brothers or any of the largest and most interconnected financial firms, and a system is needed to shut these firms down with the least amount of collateral damage to innocent people and businesses.

To tackle this issue, Obama said, the financial regulation reform bill would enact the Volcker Rule, which places some limits on the size of banks and the kinds of risks that banking institutions can take.

In January Obama proposed to bar banks from owning, investing in or sponsoring hedge funds or private equity funds.

In addressing the financial regulation loopholes, Obama again criticized the derivatives as "financial weapons of mass destruction," citing renowned investor Warren Buffett.

"That's why these reforms are designed to respect legitimate activities but prevent reckless risk taking. And that's why we want to ensure that financial products like standardized derivatives are traded in the open, in full view of businesses, investors, and those charged with oversight," he said.

The president also touted the importance of consumer financial protections. "While a few companies made out like bandits by exploiting their customers, our entire economy suffered," he said. "Millions of people have lost homes, and tens of millions more have lost value in their homes."

Part of the financial regulation reform is to set up a new Consumer Financial Protection Agency, which Obama administration proposed in June 2009. Earlier this year, Chairman of the Senate Banking Committee Chris Dodd suggested to put the consumer protection agency under the regulation of the Federal Reserve.

Obama promised that the reforms will give shareholders new power in the financial system. Shareholders will have a say on salaries and bonuses awarded to top executives, as well as in corporate elections.

Thursday's speech is the fourth address Obama has delivered in New York City, the home of Wall Street, since 2007 when as a candidate for the White House he called for greater accountability, intensified financial oversight, and other steps.