Obama Puts On Trial The Excesses Of Wall Street

By Author: Italo Zanotti
Total Articles: 62
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Raise the bar and sank a new attack on banks. U.S. President Barack Obama takes hard line against the reckless excesses of Wall Street that not only has to repay the aid, but must say goodbye to old practices and excessive risks that pushed the financial system and economy to the brink of collapse . The irresponsibility shown by the institutions with obscene bonuses and maxiutili becomes ever more evident the need for finance reform, for which Obama is ready to fight against banks and their army of lobbisty proposes to include and in which bolts to the size banks, lest they become too large it can not fail, and their activities, especially proprietary trading. Hence the poles of excessive risk-taking companies, which are one of the reasons for the crisis, and explains the causes of the crisis can not forget.
If adopted, the measures according to some observers - would bring the system back years: new initiatives of the administration, in fact, seem to be inspired by the Glass-Steagall Act, which entered into force since the Great Depression, which prohibited commercial banks, or their subsidiaries, to subscribe for, hold, ...
... sell or buy securities issued by private companies. The banks then could be forced to decide between the retail and proprietary trading, and consequently to separate. "The private equity and proprietary trading did not cause the crisis. A return to Glass-Steagall is not realistic. We do not change our status, says the chief financial officer David Viniar. The White House, however, denies the will of Obama wants to return to Glass-Steagall, which effectively imposed a division between commercial banks and investment. The financial system is much stronger today than they were a year ago, but continues to operate with the same rules that have pushed to the brink of collapse. "My determination to reform the system - says Obama - is reinforced by seeing that the old practice back in the firms that are opposed to reform, and when I see record profits in those companies that say they can not lend to small and medium enterprises, unable to maintain low interest rates on credit cards and can not return the funds allocated by the taxpayers. " Pressing Congress to approve the finance reform, Obama calls on banks to work together to get out of terrible crisis.