[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.