Date Added: Feb 2010
Last month, President Barack Obama unveiled a proposal to rein in the U.S. banking sector. Drafted by Paul Volcker, the former Federal Reserve head and chairman of Obama's Economic Recovery Advisory Board, the plan included measures to constrain the growth of the biggest banks and to force those banks to drop hedge fund, private equity and proprietary trading activities. The plan is expected to be incorporated into new legislation within six months. "It is time to recognize that big banks, like big munitions factories, can produce big negative externalities."