Obama downsizing banks
Published:Thursday | January 21, 2010 | 5:04 PM
US President Barack Obama has proposed limits to the size of banks to try to prevent future financial crises.
Mr Obama recently announced a $117 billion levy on banks to recoup money US taxpayers spent bailing them.
The president’s proposals also include limits on the amount of risk banks can take and banning retail banks from using their own money in risky financial transactions.
That prevents commercial banks from investing in hedge funds, private equity funds or engaging in so-called proprietary trading.
This may mean that some of the US\' biggest banks, such as Goldman Sachs, may have to be broken up.
The move is Mr Obama\'s first proposal since Republican Scott Brown\'s shock victory in Massachusetts to win a Senate seat.