He sees the merger as evidence of the uncertainty surrounding the investment bankingindustry, amid regulatory reform and an uncertain global economic outlook.
At the start of his first term, Obama's pick to lead the Treasury Department, Timothy Geithner, emerged from a tough confirmation fight in the wake of recession to help push through Wall Street reform as well as the banking and auto industry rescues.
"This is an industry that the world needs... we need to reform this industry and change it, " he said and admits that banking has become "a bit detached from society" but is now "coming down to earth with a bump".