UK considers Obama-style banking revolution

[dreamdancer 0]

at last...

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US officials will fly to London next week to discuss with ministers how sweeping changes to the banking system outlined by President Barack Obama to fight Wall Street's excesses might be implemented in the City.

Top Wall Street banks are to face tough limits on their size and will be ordered to dismantle lucrative chunks of their business after Obama responded to a series of political setbacks by turning his fire on a "binge of irresponsibility" by financiers.

Just a day after his administration suffered a disastrous defeat in a key Senate byelection, Obama shocked the financial industry by announcing that he intended to prohibit some of banks' most lucrative, yet speculative, activities.

Britain's City minister, Lord Myners, will talk to US officials on Monday as part of a meeting with G7 countries to discuss ways to impose a financial levy on a banking system that has already bounced back to profit barely a year after a multibillion pound taxpayer bailout.

In a sign that the White House is responding to public disaffection by getting tougher on those blamed for economic hardship, Obama intends to ban banks from operating hedge funds or private equity funds and will stop so-called "proprietary" trading, whereby they use their own corporate funds to gamble on the financial markets.

"Never again will American taxpayers be held hostage by a bank that is too big to fail," said Obama, who framed his plans in aggressive terms and accused banks of deploying an "army of lobbyists" to block reforms. "If these folks want a fight, it's a fight I'm ready to have."

http://www.guardian.co.uk/business/2010/jan/21/uk-considers-obama-banking-rules

stay away from moving propellers - they bite
blue skies from thai sky adventures
good solid response-provoking keyboarding

[kelpdiver 2]

For a smart guy, one has to ask why he followed up what appears to be a bad defeat on health care to take on an industry with hundreds of billions of bonus dollars to invest in the upcoming election.

[dreamdancer 0]

he should of done this the first time around. he has just enough time now to get this sorted then back to universal healthcare
(or the us is going to explode)

stay away from moving propellers - they bite
blue skies from thai sky adventures
good solid response-provoking keyboarding

[rushmc 23]

a devided house

http://uk.reuters.com/article/idUKN2123718120100122

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WASHINGTON/NEW YORK, Jan 21 (Reuters) - U.S. Treasury Secretary Timothy Geithner has expressed some skepticism behind closed doors about the broad bank limits proposed on Thursday by his boss, President Barack Obama, according to financial industry sources.

The sources, speaking anonymously because Geithner has not spoken publicly about his reservations, said the Treasury chief is concerned the proposed limits on big banks' trading and size could impact U.S. firms' global competitiveness.

He also has concerns that limits on proprietary trading do not necessarily get at the root of the problems and excesses that fueled the recent financial meltdown, the sources said.

But a White House official said Geithner was on board with Obama's economic team behind the proposals.

Geithner and Lawrence Summers, the director of President Barack Obama's National Economic Council, worked closely with Paul Volcker, who heads a panel of outside advisers, in developing the proposals, the official said

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[rhaig 0]

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(or the us is going to explode)

There will be societal breakdown and infrastructure failure in the US. It's just a matter of when, and how well we'll recover. Any efforts to stop that should really be aimed at minimizing the impact, maximizing the recovery, and preparing the infrastructure.

From a personal point of view, are you ready to go 2 weeks without electricity?

--
Rob

[dreamdancer 0]

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Quote

(or the us is going to explode)

There will be societal breakdown and infrastructure failure in the US. It's just a matter of when, and how well we'll recover. Any efforts to stop that should really be aimed at minimizing the impact, maximizing the recovery, and preparing the infrastructure.

From a personal point of view, are you ready to go 2 weeks without electricity?

part of the critical infrastructure being universal health care

stay away from moving propellers - they bite
blue skies from thai sky adventures
good solid response-provoking keyboarding

[rhaig 0]

notice I didn't define infrastructure.

I disagree with you. But that's another thread.

--
Rob

[shropshire 0]

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part of the critical infrastructure being universal health care

I couldn't agree more !

BTW the Banks have been taking the piss for way too long. It's about time someome had the balls to slap them down - BIG TIME.

(.)Y(.)
Chivalry is not dead; it only sleeps for want of work to do. - Jerome K Jerome

[kelpdiver 2]

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notice I didn't define infrastructure.

I disagree with you. But that's another thread.

Yeah, you instead put out some vague 'world is going to end' posting, but with none of the specific details that Bill Cole would include. Nice CYA!

[BDashe 0]

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he should of done this the first time around. he has just enough time now to get this sorted then back to universal healthcare
(or the us is going to explode)

You do realize proprietary trading has absolutely nothing to do with the lending collapse... right? O is really starting to reach and pick at straws with the banks now that they are all unexpectedly (to him) paying him back.

So there I was...

Making friends and playing nice since 1983

[dreamdancer 0]

let me guess - it was obama's fault the banks collapsed?

stay away from moving propellers - they bite
blue skies from thai sky adventures
good solid response-provoking keyboarding

[rhaig 0]

Quote

Quote

notice I didn't define infrastructure.

I disagree with you. But that's another thread.

Yeah, you instead put out some vague 'world is going to end' posting, but with none of the specific details that Bill Cole would include. Nice CYA!

I do vague very well. I'm in software support for a living. Vague is my job :)

--
Rob

[kelpdiver 2]

do you write EULAs also?

[rhaig 0]

:)

--
Rob

[BDashe 0]

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let me guess - it was obama's fault the banks collapsed?

No, I've addressed my opinion on that unrelated matter in another thread. However the fact remains, proprietary trading has absolutely nothing to do with the financial crisis, so he is f*cking with it likely cuz he has it out for banks and big business... and small business evidently.

I'm starting to think he enjoys watching banks and businesses fail so he can appear to be "right." he must be right on all these matters yeah? A few years as a community organizer certainly qualifies him to tell banks and CEOs how to operate.

So there I was...

Making friends and playing nice since 1983

[CanuckInUSA 0]

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A few years as a community organizer certainly qualifies him to tell banks and CEOs how to operate.

Hey it's not everyday that a community organizer mentored by marxists gets to hold the most powerful job in the world. After all he does part the Red Sea every Tuesday and Thursday (though he did have to stop his matinée appearances).

Obama is the Hollywood president.
Smoke and mirrors baby ... smoke and mirrors.

Try not to worry about the things you have no control over