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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (68603)	1/21/2010 4:45:19 AM
From: Mac Con Ulaidh	Read Replies (1) \| Respond to of 149317

Proposal Set to Curb Bank Giants By DAMIAN PALETTA and JONATHAN WEISMAN WASHINGTON—President Barack Obama on Thursday is expected to propose new limits on the size and risk taken by the country's biggest banks, marking the administration's latest assault on Wall Street in what could mark a return, at least in spirit, to some of the curbs on finance put in place during the Great Depression, according to congressional sources and administration officials. The past decade saw widespread consolidation among large financial institutions to create huge banking titans. If Congress approves the proposal, the White House plan could permanently impose government constraints on the size and nature of banking. Mr. Obama's proposal is expected to include new scale restrictions on the size of the country's largest financial institutions. The goal would be to deter banks from becoming so large they put the broader economy at risk and to also prevent banks from becoming so large they distort normal competitive forces. It couldn't be learned what precise limits the White House will endorse, or whether Mr. Obama will spell out the exact limits on Thursday. Mr. Obama is also expected to endorse, for the first time publicly, measures pushed by former Federal Reserve Chairman Paul Volcker, which would place restrictions on the proprietary trading done by commercial banks, essentially limiting the way banks bet with their own capital. Administration officials say they want to place "firewalls" between different divisions of financial companies to ensure banks don't indirectly subsidize "speculative" trading through other subsidiaries that hold federally insured deposits. The proposal could have the biggest effect on Bank of America Corp., Wells Fargo & Co., and J.P. Morgan Chase & Co., which control a large amount of U.S. deposits, as well as Goldman Sachs, Morgan Stanley and Citigroup Inc., which have a large presence on Wall Street. If the proposal took effect, big banks could be forced to wall off certain activities in their investing banking units—which trade and underwrite securities and make their own bets on markets—from their traditional businesses, which make loans and take deposits. The investing banking units have grown dramatically in recent years, were far more profitable than the banking operations and were at the heart of the financial crisis. The industry has undergone a major consolidation during the financial crisis, leaving the top four banks with an unprecedented market share in businesses such as deposit taking, credit cards and mortgages. The rules could also keep banks out of the business of running hedge funds, investing in real estate or private equity, all businesses that have become important, profitable parts of these banks. The collapse of two highly leveraged hedge funds began the process that led to the collapse of Bear Stearns. If investors believe the new rules could take effect, they could sell off the shares of most of the big financial stocks in the belief these companies would be facing years of turmoil and potentially lower profits. Messrs. Obama and Volcker are scheduled to meet tomorrow in advance of the White House announcement. The White House's proposal, one aide said, wouldn't resurrect the exact limits put in place by the Depression-era Glass Steagall Act, which essentially walled off commercial banks from investment banks and was repealed in 1999. Instead, the White House proposal would seek to return the "spirit of Glass Steagall," meant to limit large banks from becoming too big and complex that create enormous risk. online.wsj.com

To: stockman_scott who wrote (68603)	1/21/2010 10:59:19 AM
From: manalagi	Read Replies (1) \| Respond to of 149317

Mr Obama, your friends are not Joseph Lieberman who campaigned for McCain and threatened to vote against HCR, or Senator Ben Horseman Nelson who blackmailed you to give money to his state, or Larry Summers who panders to Wall Street, or Martha Coakley who embarrassed you by losing to Scott Brown, a good looking man who posed naked for the cover of Cosmopolitan. The Senate is not 59/41. Don't forget that Lieberman will change color just to get in the news. People who voted for Obama are so disappointed since he is just another politician: promising good things to be elected, and then ignoring those who supported him. Obama tries to be nice to every one, including those who despise him, like Cheney, neocons, Fox etc. His pandering to the opposition party makes him look weak, and just like any predator, the Republican sees a weakened prey and piles on whatever Obama does. Obama is a professor. He can teach but cannot practice what he teaches. Obama is a good guy, but in politics, good guy finishes last. He has to take a big bat and swing to those who are against him, just like GWB did. Go to Texas, get a 10 gallon hat and acts like a cowboy.