Thursday, January 21, 2010
Obama tries to walk the walk on banking.
He has proposed a new set of rules for the investment banking community based on input from Paul Volcker.
President Barack Obama is calling for tougher regulations on banks that would limit the size and complexity of large financial institutions.This should help limit self dealing and insider trading at the biggest banks but it will limit their profit. We can judge how much from the amount of wailing and opposition they put up.
The proposal would limit banks' ability to engage in high-risk trades. Restrictions would be placed on proprietary trading by commercial banks to separate those institutions from investment banks.
Calling it the "Volcker rule," after former Federal Reserve Chairman Paul Volcker who flanked the president as he spoke, Obama said that banks will no longer be allowed to own, invest in or sponsor hedge funds and private equity firms for their own benefit. Volcker is chairman of the president's Economic Recovery Advisory Board and is widely respected on Wall Street.
Comments:
<< Home
Nice little nit-picky change. But sweeping changes? Sounds like Obama is going to make some sweeping changes in the banking industry alright. He's going to mandate that they buy a different brand of broom.
- Badtux the Snarky Penguin
- Badtux the Snarky Penguin
This leaves it subject to political horse-trading, both within Congress and between legislators and the administration. Could it become a bargaining chip in preserving the controversial consumer financial protection agency, Obama's centerpiece reform? Obama could pick off a few Republican supporters for the banking proposals; John McCain has expressed some similar sentiments recently, and the issue taps right into the anti-Wall Street fervor that shows no signs of abating.
Hinduja Group
Today, the Hinduja Group has become one of the largest diversified groups in the world spanning all the continents. The Group employs over 30,000 people and has offices in many key cities of the world and all the major cities in India.The Hinduja Family has always adapted to free-market reforms moving quickly in new markets that have opened, and capitalising on new economy opportunities.
http://www.hindujagroup.com/
Hinduja Group
Today, the Hinduja Group has become one of the largest diversified groups in the world spanning all the continents. The Group employs over 30,000 people and has offices in many key cities of the world and all the major cities in India.The Hinduja Family has always adapted to free-market reforms moving quickly in new markets that have opened, and capitalising on new economy opportunities.
http://www.hindujagroup.com/
# posted by 
: 3:21 AM
: 3:21 AM Subscribe to Post Comments [Atom]
<< Home
Subscribe to Posts [Atom]
Post a Comment