Wall Street under attack from Obama
Barrack Obama has today revealed a number of measures aimed at reducing the impact and power of Wall Street institutions in the future. Those who have reviewed the measures in detail believe they amount to the biggest regulatory crackdown on Wall Street since the 1930s. It is a measure of the times that despite revealing a new banking levy, which could bring in billions of dollars for the US authorities, the government still believes more needs to be done to reduce the power and influence of Wall Street as a whole.
The new measures are predominantly aimed at tackling various high-risk trading practices which can backfire, as we saw during the credit crunch, with a massive impact elsewhere in the economy. There is also a suggestion that the new US regulations will limit the maximum size of US institutions in the future although how this would be executed within the framework of a "free market" remains to be seen.
Historically where the US leads the UK has followed and many are now waiting for Gordon Brown to step forward with his own plans for the future which he is likely to reveal in the run-up to the election. The banking sector is still public enemy number one and there is still much political mileage in attacking the sector.
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