Obama essentially seeks to return to rules, repealed in 1999, that prevented bank holding companies from owning both commercial banks and Wall Street investment firms.
Obama essentially is proposing return to the Glass-Steagall restrictions enacted after the Great Depression, which separated commercial banks and investment banks.
If so and implemented, this is great news. What I’m unclear on is how it becomes regulation and if Obama will stand and fight against the expected onslaught from the investment banks.
After ignoring Big Paul [Volcker] for a year, Obama finally listened. The result is the end of Wall Street as we know it.
That is not hyperbole. But there’s been so many compromises from Obama over the past year, let’s see if he actually does it.