Obama Proposes More Restrictions on Big Banks
Federal regulators would have the power to limit the size of certain banks and their ability to take certain risks, under a proposal unveiled today by President Obama.
The plan, which he hopes will be incorporated in the regulatory restructuring legislation currently working its way through Congress, would ban banks from engaging in proprietary trading, which is trading financial instruments with its own money-rather than the customer's money.
The Obama administration's proposal would also limit what the administration describes as the "excessive growth of the market share of liabilities at the largest financial firms."
It would supplement, not replace, existing caps on the market share of deposits.
Last month, the House passed a regulatory restructuring and the Senate Banking Committee is working on coming up with its own version of the measure.