Mr. Obama announced today announced plans to restrict the size of banks and to limit their investments which he deems to be risky.
Essentially, banks may be forced to separate their investment and their banking businesses. And banks are to be restricted to using their customers' funds for investing, and not be allowed to use their own funds, called "hedge" funds.
This is because the "hedge" fund investments became extremely shaky with the sub-prime mortgage debacle. http://www.politico.com/news/stories/0110/31769_Page2.html
Frankly, I must look into this more. This is my question: the federal government is responsible for the sub-prime mortgage fiasco. The banks didn't want to make bad loans!
So what is this REALLY all about?
Oh, and by the way, this announcement sent the stock market into a tailspin. Oh, goody....
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