President Barack Obama said on Tuesday that efforts to create jobs and spur economic growth won't matter if the U. S. financial system remains vulnerable to crisis.

Obama said in an address to the Business Council in Washington, "None of these steps will matter if our financial system remains vulnerable to another crisis like the one that we've just been through. As we've learned so painfully in recent years, government has an obligation to set basic common-sense rules in the marketplace."

He also said that financial reform being considered by the Senate wouldn't be a hindrance to business but essential for the market to function.

The president further said, "The reforms we've proposed are in no way designed to hamstring businesses. These are changes to make sure that our markets are working in a way that is open and transparent and inoculated against the kind of massive, dangerous risks that nearly brought the whole financial sector down."

According to him, Wall Street reforms would do three things, Create a way to protect the U. S. financial system, economy and taxpayers should a large financial firm collapse; bring transparency to financial markets, including derivatives; and enact consumer financial protections.

Obama said, "I believe that unless your business model depends on bilking people, there is little to fear from these new rules. It is just going to be able to empower consumers to know what they're getting into."

Also, investors would have more sway in the financial system because the reforms would give shareholders a voice about salaries and bonuses awarded to top executives.

Obama also revealed, "I want America's financial sector to continue to be the most trusted and that most respected in the world. That requires reform." (With Inputs from Agencies)