Saturday, January 23, 2010

Obama to control greedy banks

Mr. Barack Obama,
President of the US,

Dear President,

We refer to the report below for your information and wish to congratulate you for taken this drastic action which is long overdue.

The global greedy banking cartel and other financial institutions are there to serve their own interests and must be controlled as to avoid another Great Depression!!

Yours respectfully,

Eddie Hwang
Unity Party WA
Ph/Fax: 61 893681884
Date: 23-Jan-2010.
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Obama plan to limit the size of banks - report
From: AFP - January 21, 2010 4:24PM
US President Barack Obama will tonight propose new limits on the size of US banks after spending billions of tax-payer dollars to bail out "too-big-to-fail'' firms, a senior official says.

The measures would place sweeping new restrictions on a sector seen as responsible for sparking the largest recession since the Great Depression of the 1930s.

"A couple of months ago the President began discussing with his economic team the need to include in financial reform more specific and stronger provisions to limit the size and scope of financial institutions'' the official said.

The proposals aim "to cut down on excessive risk taking'' among the largest banks, after crises at a handful of the largest firms threatened to choke the flow of cash to the US economy.

''The President will announce a series of measures that address size and scope'' of the institutions the official said.

by efforts to rescue banks that were exposed to massive loses on the sub-prime mortgage market.

The official, who asked not to be named, said the new measures would limit banks' ability to use their own cash to buy such financial instruments, so-called proprietary trading.

"The proposal will include size and complexity limits specifically on proprietary trading,'' the source said.

Facing widespread voter anger over state take-overs of the troubled firms, Mr Obama earlier this month proposed a tax on big banks and warned the banking industry not to block or water down his planned regulatory reforms.

"It is both in the country's interests and ultimately in the financial industry's interest to have updated rules of the road to prevent abuse and excess.''

The new measures will have to be approved by Congress before becoming law.

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