Banks banned from prop trading under Obama plan

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Financial institutions that own a deposit-taking bank could be forbidden from conducting proprietary trading for their own profit and prohibited from owning, sponsoring or even investing in hedge funds and private equity funds, under new reforms announced by the Obama administration. Speaking at the White House yesterday, President Barack Obama stated that "the financial system is still operating under rules that led to its near collapse" and proposed a new ‘Volcker rule' – named