Traders work at the New York Stock Exchange during U.S. President Barack Obama's speech Thursday. (Mark Lennihan/Associated Press)

U.S. President Barack Obama called for stronger financial regulations and oversight on Wall Street, arguing that only tougher reforms will prevent a future economic meltdown.

"It is essential that we learn the lessons of this crisis, so we don't doom ourselves to repeat it. And make no mistake, that is exactly what will happen if we allow this moment to pass — and that's an outcome that is unacceptable to me and to the American people," Obama said in a speech at Cooper Union in Manhattan in New York on Thursday.

The reforms, considered the the largest attempt to overhaul the U.S. financial system since the 1930s, would include:

• Regulation of the derivatives market.
• Establishment of a consumer protection agency for buyers of mortgages and investment products.
• The creation of a council to detect threats to the financial system.

The reforms would also seek to clamp down on risks banks can take.

Obama said that Wall Street reform is an essential part of building a new foundation for economic growth in the 21st century.

"Without it, our house will continue to sit on shifting sands, leaving our families, businesses and the global economy vulnerable to future crises. That is why I feel so strongly that we need to enact a set of updated, common sense rules to ensure accountability on Wall Street and to protect consumers in our financial system."

Obama rejected critics' suggestions that the proposed legislation will enable future taxpayer bailouts, saying they are "not factually accurate."

"The system as it stands is what led to a series of massive, costly taxpayer bailouts, and it's only with reform that we can avoid a similar outcome in the future. A vote for reform is a vote to put a stop to taxpayer-funded bailouts. That’s the truth. End of story," he said.

The U.S. House of Representatives passed a financial reform bill in December. Democrats are preparing to bring the Senate version of the bill up for debate, but Republicans have opposed some of the proposals, saying too much regulation will hurt the financial markets.

SEC charges bank

Obama's push for reforms comes as the U.S. Securities and Exchange Commission charged the giant Wall Street investment bank Goldman Sachs with civil fraud last week.

The SEC suit alleges the bank misled investors who bought complex mortgage-related products that were crafted in part by a hedge fund billionaire who was betting that they would fail.

Goldman has denied the SEC charge.

Some Republicans have accused the White House of meddling in the SEC, saying the charges were timed to come as the Senate considers financial regulation legislation.

But Obama himself denied any interference from the White House, stessing that the SEC is an independent body.

With files from The Associated Press