President Obama Thursday proposed new limits on banks' size as well as their ability to take risks. The move is part of reform measures to avert a repeat of the practices that led to the financial crisis. The stock market fell in response to the news.
The bankers should pay, Obama says. But some think the money would come out of shareholders’ pockets, and others say the big banks would pass it along to consumers and businesses.
The bill gives government new powers to rein in 'too big to fail' companies and to protect consumers. The House is set to vote on the financial-regulation measures Friday.
Under the new ‘mark-to-market’ rule, banks can consider the value of assets as if they are being sold in an orderly fashion, not in a distress sale.
The Treasury may back risky mortgages and include other industries in its financial rescue effort.