Stock market has worst day in three months after Obama banks speech. For the third straight day, the stock market slumped. The last two weeks have been strong with the market surging 3% just Monday the stock market experienced a 16-month high.
Thursday was the worst day in the stock market since October 30, 2009. It was the second day in a row with big losses, and lost the almost 3% gain it acquired in January.
This follows President Obama’s speech about the banks and expressed his disappointment and frustration with them. Wednesday, after China asked banks to slow their lending pace this year, the stock market fell.
President Obama said Thursday that he would ask Congress for limits on how large a bank can become, and to put an end to the risky trades banks and financial companies use in an attempt to make profits.
President Obama also scolded Wall Street banks Thursday and called for limits on their size and investments. Immediately the stock market fell.
"We have to get this done," Obama said. "If these folks want a fight, it's a fight I'm ready to have."
"We've come through a terrible crisis," Obama said. "The American people have paid a very high price. ... That's why we're going to rein in the excess and abuse that nearly brought down our financial system."
Obama’s plan calls for the elimination of industrial banks and would want them closed within five years. The industrial banking industry in Utah consists of 25 banks that hold assets of over $168 billion dollars, according to Free Public.
Utah's industrial banking community has good reason to be upset.
In a statement released by the Utah Association of Financial Services, "Industrial banks are the safest and soundest financial institutions in the country," said Louise Kelly, chief executive of EnerBank. "We did not contribute to the current financial collapse."
The first video below is of President Obama speech about the banks. The second video is about Goldman Sachs group.
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Sources: CNN Money and The Salt Lake Tribune
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