Banks banned from proprietary trading under Obama proposals

Financial institutions that own a deposit-taking bank would be forbidden from conducting proprietary trading for their own profit and owning, sponsoring or even investing in hedge funds and private equity funds, under reforms proposed by the Obama administration last month.

In an announcement in January, President Barack Obama said that “the financial system is still operating under rules that led to its near collapse” and proposed a new ‘Volcker rule’ – named after former Fed chairman Paul Volck

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