Obama and Volcker Want Big Changes on Wall Street

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Photo: SAUL LOEB/AFP/Getty Images

President Obama plans to announce some pretty serious new limits on the size of the country's biggest banks and the risks they can take today. The approach Obama will champion is one long supported by former Fed Chair Paul Volcker, who will be on hand for the announcement. The basic idea, according to the Times, is to "prohibit proprietary trading of financial securities, including mortgage-backed securities, by commercial banks using deposits in their commercial banking sectors." If Congress ends up passing regulations that include these rules, some of the countries biggest banks may have to say good bye to running hedge funds and investing in real estate or private equity, says the Wall Street Journal. This sounds like something that men in nice suits will be angry about.

Obama to Propose Limits on Risks Taken by Banks [NYT]
Proposal Set to Curb Bank Giants [WSJ]