Obama taps Volcker to head panel on crisis

WASHINGTON (Reuters) - President-elect Barack Obama on Wednesday tapped former Federal Reserve Chairman Paul Volcker to head an advisory panel on the financial crisis.

Obama also said University of Chicago economist Austan Goolsbee, a top adviser during the campaign, would serve as a member of the White House Council of Economic Advisers and as staff director for the panel Volcker will chair.

Following are highlights from a news conference Obama held where he made the announcements.

OBAMA ON RESTORING CREDIT FLOWS

"We have to do whatever is required in order to make sure that our financial system stays effective in being able to get credit to the markets. It is important for us to make sure that the federal government -- whether it is the Fed or the Treasury or any of the other agencies that have been given this authority 0- use it in a forceful fashion."

OBAMA ON DETAILS OF BUDGET PARING PLANS

"With respect to the details of the economic plan, as I've said before we're going to be working over the next several months to put those details together. I've described for you the framework within which we're going to put that legislation forward ... I think we'd hardly be expected to provide you a detailed list now, that's why I have Peter Orszag, our budget director, who's going to be going through that budget page-by-page, line-by-line and the expectation is that we will identify those programs that are not working, make sure that those are eliminated and put money into those programs that do, things like health-care modernization, making sure that we've gotten first class schools that our kids need in order to compete in the 21st century, start putting a down payment on a new energy economy."

OBAMA ON NEED FOR FRESH THINKING

"It has become increasingly clear in recent months that we are facing an economic crisis of historic proportions. At this defining moment for our nation, the old ways of thinking and acting just won't do. We are called to seek fresh thinking and bold new ideas from the leading minds across America. And as we chart a course to economic recovery, we must ensure that our government -- your government -- is held accountable for delivering results."

OBAMA ON LOOKING FOR ADVISERS WITH EXPERIENCE

"The vision for change, comes, first and foremost, it comes from me. That's my job, to provide a vision in terms of where we are going and to make sure that my team is implementing. When you ultimately look at what this advisory board looks like, you'll say 'This is a cross-section of opinion.'"

"We want ideas from everybody but what I don't want to do is to somehow suggest that because you served in the last Democratic administration that you are somehow barred from serving."

OBAMA ON WHY HE HAS HELD 3 NEWS CONFERENCE IN 3 DAYS

"What this speaks to is the frustration of eight years in which middle class income has gone down, family incomes have been reduced, it speaks to my frustration about all the families I have met over the last two years who have lost their health insurance and their pensions are in danger, young people who can't afford to go to college. It expresses frustration of our inability to tackle some the long-term problems that we have been facing. Most of all I think frustration with the incapacity of Washington to take bold, clear decisive steps to deal with our economic problems. I was elected with the charge of getting this economy back in shape."