President Obama has at last decided that something needs to be done about large US banks.
His ideas, to limit proprietary trading, while giving regulators the power to break up “too big to fail” banks and forbid excessive risk-taking, come straight from former Fed Chairman Paul Volcker, perhaps the only senior figure on Wall Street or in the Administration with any credibility on this issue.
Whether these ideas can be passed by a Congress that’s wholly owned by Wall Street remains to be seen, but it’s good to see the President recognize that the financial services industry has not been doing much to reinvigorate the floundering US economy.
Gorilla says: “Now if the President would also propose a public works program and guarantee the states’ debt for three years, you could say he finally gets it!”
Tags: banks, Obama, Paul Volcker, US Economy