Meet The Winners And Losers In Obama’s New Wall Street
Courtesy of Gregory White and John Carney at Clusterstock
Many financial shares tanked yesterday after President Barack Obama proposed rules that would limit the types of trading banks can do with their money.
Tightening the rules on risk-taking and trading will likely hurt profits at some banks. But the pain won’t be spread evenly across the financial sector.
Some banks, especially smaller regional banks that haven’t gone in for the prop trading and hedge fund investing that forms the core of some Wall Street banks, probably won’t be touched by this
Obama also said he would crack down on bank consolidation and seek to limit the size of banks.
All eyes immediately turned to big financial institutions like Bank of America, Citigroup Inc. and JPMorgan Chase & Co. are structured. Each of their stocks dropped more than 4 percent.
But what about Morgan Stanley and Goldman Sachs? Can they abandon their prop trading? Can they avoid the regulations?
We delved into the regulations to see who we think will come out ahead and who will take a beating.
The top winners and losers from Obama’s banking plan >
