January 21st, 2010
01:01 PM ET
13 years ago

Obama wants to limit bank size

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/01/21/art.bopaul0121.gi.jpg caption="President Obama announced the 'Volcker rule' Thursday. The proposal is named after Paul Volcker, an Obama economic adviser who is also a former Federal Reserve chief."]
NEW YORK (CNNMoney.com) - President Obama on Thursday publicly signed on to a message that former Federal Reserve chief Paul Volcker has been giving for a year: Let's limit the big banks.

Volcker, an economic adviser to Obama, will join the president Thursday in announcing new measures to narrow the size and scope of banks' investment activities, according to a senior administration official.

Calling it the "Volcker rule," the president proposed prohibiting commercial banks from making trades for their own accounts. He also proposed prohibiting banks from owning or investing in hedge funds.

"We should no longer allow banks to stray too far from their central mission of serving their customers," Obama said in a White House address.

Obama also proposed tougher rules aimed at limiting bank mergers and consolidation. New, yet to be determined, caps would curb banks' marketshare, going further than existing caps.

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soundoff (51 Responses)
  1. Dar

    Odumbo wants to rule us all. Now that he owns (he thinks like that) a part of the banking system he is going to tell them how not to make money?????? It's their profits and they should be able to do what they want and invest how they want.
    Investing is a good thing for all of us, look at the stock market, when it went down to 6000 points and bottomed out, we started investing again in the market and it shot back up. I dont know about you but I for one am glad as hell because my 401 looks healthy again.
    Odumbo is a fool when it comes to running a business, why because he never did. You Dems hierd a boy to do a mans job.
    He need to go away and build play grounds for blind Dems all over the country and let the people run the USA.

    2010/2012 REAL Change is coming (did you hear we have a new senator 🙂

    January 21, 2010 03:00 pm at 3:00 pm |
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