"President Barack Obama plans to send Congress as soon as today “Volcker Rule” language to impose strict limits on banks’ size and proprietary trading, according to two people briefed on the proposal.
Obama will ask lawmakers to bar banks from trading solely for their own profit and limit company size by expanding a 10 percent cap on deposit share to include other funding sources, according to a draft summary obtained by Bloomberg News. It also would tighten supervision and capital and liquidity requirements on non-bank companies engaged in proprietary trading, according to the summary.
The president’s proposal would bar banks from owning or controlling hedge funds and private-equity firms, according to the summary. Banks also would be barred from acting as a prime broker to hedge funds they advise.
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— Obama Said to Send Volcker Rule Proposal to Congress (Update1) - Bloomberg.com (via tedr)
