President Barack Obama proposed Thursday new rules designed to restrict the size and activities of the U.S.’s largest biggest banks, the latest in a series of administration moves to curb Wall Street.
The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself–what’s known as proprietary trading–and said the administration will seek new limits on the size and concentration of financial institutions.
Shares of big banks fell. Morgan Stanley’s shares dropped sharply after the announcement, falling 7.4% to $28.37 in recent trading, as J.P. Morgan Chase declined 5.6% to $40.97. Citigroup fell 4.1% to $3.32 and Bank of America dropped 5% to $15.67.