Financial institutions that pose a serious risk to markets should be subject to serious government oversight, U.S. President Barack Obama said on Wednesday.

Speaking after meeting with Treasury Secretary Tim Geithner and lawmakers on financial regulatory reform, Obama also said: But let me be clear -- the choice we face is not between an oppressive government-run economy and a chaotic and unforgiving capitalism.

Rather, strong financial markets require clear rules of the road, not to hinder financial institutions, but to protect consumers and investors.

(Editing by Sandra Maler)