Description: In his toughest response yet to the financial crisis, Obama proposed Thursday that strict limits be imposed on the size and trading activities of the nation’s biggest banks. The proposal aims to deter commercial banks from becoming so large that they put the broader economy at risk and distort normal competitive forces. The president endorsed some recommendations by former Federal Reserve Chairman Paul Volcker, but didn’t go as far as Volcker’s urgings to break up the banks. Read more about Obama’s bank proposal
Questions for discussion:
- Summarize the key points made in the report.
- What are the implications of a reinstatement of Glass-Steagall for the banks, the stock markets, and for investors?
- Do you support President Obamaâ€™s approach to bank regulation? Explain your thinking.