Obama Flexes Muscles Bringing in New Rules for Banks

President Obama flexed his muscles threatening to bring in new rules to impose limits on financial risks; immediately stocks and the dollar responded by tumbling down.
Obama has been struggling for some time to push forth his plans but his tone became more strident after the Democrats lost the key seat of Massachusetts. He outright blamed the banks for bringing about the financial crisis by pursuing risky lucrative deals. He said speaking to reporters at the White House surrounded by his legislators and advisors, “If these folks want a fight, its fight I’m ready to have. We should no longer allow banks to stray too far from their central mission of serving their customers.”
Inner circle observers commented that Timothy Geithner, the Treasury Secretary had been hesitant about the measures. He argued that judicious economic policy was being sacrificed at the altar of politics. But White House negated this and said that the plans of Obama had the full backing of his team. Obama said, “We should no longer allow banks to stray too far from their central mission of serving their customers.”

The first year of Obama’s presidency has seen mixed success. He had taken a tough stand but laced with a populist stand. His target was to rebuild his political foundations by making use of the public ire against Wall Street splurges.
The suggested measures require the approval of the Congress. If it is passed then banks and other financial bodies owning banks would be stopped from investing in hedge and private equity firms; neither would they be permitted to sponsor such deals. Also limits would be placed on the size of the relations of the banks with the general financial sector. Taking into consideration would be deposits in accounts together with other liabilities and non-deposit-funding; caps have already been placed on account deposits.
It would furthermore stop institutions from proprietary trading functions that were unrelated to customer service, merely for their own gains. In proprietary trading firms indulge in betting in the financial markets with their own dollars. Thus they do not do so representing other clients. These specialized trading maneuvers tend to rise and fall with immense potentialities for the financial entities to make abnormal profits; but it is done by putting up the entire economy at risk. White House is putting the blame on these operations for nearly pulling down flat the economy of the country in 2008.
White House wants to coordinate with its international allies to make effective these changes.

resumo: Here is shown the intusiasmo imposition of Obama in relation to the U.S. financial crisis. Obama is very willing to fight and new rules and says that the main fault is the way banks are facing it.