Jupiter's Gibbs on Obama's banking reforms

While bank reforms have been on the cards for some time, the timing of President Obama's proposals appears politically motivated. In short, Obama aims to limit the size of US banks and stop retail banks operating proprietary trading (when a bank trades with its own money for profit) and private equity activities. However, the exact timing and shape of his proposals and their potential impact is still uncertain. There is little doubt that reform is required after the credit crisis of 2007-08. However, bank earnings are just starting to recover. Proprietary trading and private equity ac...