Obama Will Propose New Limits on Banks

2 years ago

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Washington Reporter

President Obama is expected to propose giving bank regulators authority to limit the size of banks and prohibit the trading of accounts, the New York Times reports. In doing so, Obama will put his support behind a plan long advocated by Paul Volcker, the former chairman of the Federal Reserve.

The new regulations would stop proprietary trading, including trading of mortgage-backed securities, the financial products that played a large role in the market crash of 2008. The White House will work with the House and Senate to include the new proposals in pending legislation for financial regulation and consumer protection.

Only a handful of America's largest banks would be targeted, including Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase. Goldman Sachs, a Wall Street trading house, would have to give up its recently acquired status as a consumer bank.

Filed Under: Obama Administration, Wall Street

Tagged: bank, bankers, banks, daily guidance, DailyGuidance, financial products, financial regulation, FinancialProducts, FinancialRegulation, wall street, WallStreet

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