President Obama held a conference at the White House on Thursday proposing new restrictions on financial institutions to rein in excesses and help protect taxpayers.
According to a statement released by the Office of the Press Secretary issued Thursday.
The proposal would:
1. Limit the Scope of financial institutions - The President and his economic team will work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit.
2. Limit the Size of financial institutions - The President also announced a new proposal to limit the consolidation of our financial sector. The President’s proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms, to supplement existing caps on the market share of deposits.
At the conference President Obama remarked that “I welcome constructive input from folks in the financial sector. But what we've seen so far, in recent weeks, is an army of industry lobbyists from Wall Street descending on Capitol Hill to try and block basic and common-sense rules of the road that would protect our economy and the American people.”
The President also had a warning for lobbyists adding that, “If these folks want a fight, it's a fight I'm ready to have.’ He went on to latter add. “When I see soaring profits and obscene bonuses at some of the very firms claiming that they can't lend more to small business, they can't keep credit card rates low, they can't pay a fee to refund taxpayers for the bailout without passing on the cost to shareholders or customers -- that's the claims they're making. It's exactly this kind of irresponsibility that makes clear reform is necessary.”
The President made clear these reforms are necessary to avoid major financial crises in the future.