President Obama’s proposals cause Banks shares to fall

Shares have dropped in major British banks after Barack Obama’s proposals decision to end Wall Street’s risky trading practices. Obama wants banks to stop betting on markets with own money and to ensure no bank becomes too large.

Barclays (LON: BARC) and Royal Bank of Scotland (LON: RBS) shares were hit hardest, because they have the biggest operations in the US among the U.K. banks. George Osborne said that the Tories would back “Obama-style” regulation in Britain. The President of the U.S said banks would no longer “be allowed to own, invest or sponsor hedge funds,” for their own profit unrelated to serving their customers.

George Osborne, the shadow chancellor has agreed with Obama. He told the BBC Radio 4 Today programme that he agrees with the presidents regulations, however would not act alone to break up British institutions. Eyes will now certainly be on the New York stock market today.

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