posted
Jan 26, 2010 by News Gatherer
Obama is scheduled to announce the plan at 11:40 a.m. at the White House after meeting with former Federal Reserve Chairman Paul Volcker, who has been an advocate of taking such steps. The proposals will be part of an overhaul of regulations and will specifically address firms’ proprietary trading, the official said yesterday on the condition of anonymity.
Those economic concerns will amount in the campaigns for November elections that will determine whether Obama’s Democratic Party can sustain majorities in the House and Senate. Obama is renewing his focus on economic issues, tapping into voter anger about the struggling economy, taxpayer bailouts and growing bank profits at a time of 10 percent unemployment, as well as a federal deficit that rose to $1.4 trillion last year.
Banks conduct proprietary trading for their own benefit, not for that of their clients. in Lake Oswego, Oregon. The proposals could affect trading at some of the nation’s largest banks, including New York-based Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co., said Frederic Dickson, chief market strategist at D.A. Davidson & Co.
based in Charlotte, North Carolina. and American International Group Inc. Last anniversary the admiral announced a plan to impose a fee on as many as 50 financial companies to recover losses from the federal government’s Troubled Asset Relief Program. and Bank of America Corp. It would be imposed starting June 30 on companies such as New York-based Citigroup Inc.
Goldman reaped more than 90 percent of its pretax earnings last year from trading and so-called principal investments, which accommodate market bets on securities and stakes in companies. The proposal could limit activities of banks such as Goldman, the most profitable investment bank in Wall Street history.
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