President Announces New Restrictions On Banks

President Obama recently announced new reforms for Wall Street, unveiling a proposal to cut down on the size and risk-taking of the nation’s largest banks, ABC News reports. The proposals must be approved by Congress.

“This economic crisis began as a financial crisis, when banks and financial institutions took huge, reckless risks in pursuit of quick profits and massive bonuses,” the President said.

Now the administration intends to cut back on the size and scope of these institutions, as well as the extent of their risk-taking. The new proposal would crack down on high-risk trades by restricting proprietary trading at commercial banks. Banks would be prohibited from owning or investing in hedge funds and private equity firms.