Obama’s plan to reform the big banks is rank political opportunism and will do little to address the underlying problems of the financial crisis.
Sean Collins, Spiked It’s the oldest trick in politics: when you’re in trouble, change the subject. And so two days after his administration and party were reeling after losing the special senate election in Massachusetts, President Barack Obama announced a plan that places new restrictions on banks’ activities and overall size.
First, he called for a ban on commercial banks (like high-street banks) from trading using depositors’ money unless directly on behalf of customers (so-called ‘proprietary trading’), and from owning, investing or sponsoring hedge funds or private equity funds. Second, he proposed expanding the current cap on the market share of deposits (set at 10 per cent) to other liabilities.
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