On Wednesday the banking industry became the latest target in Obama’s war against the American economy. Obama made his speech saying that banks should be able to take deposits or invest, but not both.
Two minutes later nearly $30 billion was wiped off the value of America’s top shares as traders reeled at Obama’s proposal to split up Wall Street’s banks.
Germany’s BdB banking association Friday slammed U.S. President Barack Obama’s proposals to limit U.S. banking activities, saying they could hamper the performance of banks and the economy.
Those plans “won’t improve the stability of the financial system,” said the association, which represents German commercial banks such as Deutsche Bank AG (DB), Commerzbank AG (CBK.XE) and Deutsche Postbank AG (DPB.XE).
“Those plans threaten predominantly the capability of the U.S. as a financial center and eventually (would) hurt the entire global financial system. This would have negative consequences, notably for economic growth,” said the association’s managing director, Manfred Weber.
Obama Thursday outlined a plan to prevent commercial banks and institutions that own banks from operating and investing in hedge funds and private equity firms, while capping proprietary trading.