US stocks dunk thanks to succour trick since Obama bank plan

US stock markets admit fussed due to a second consecutive day, on concern over herald Obama's plan to revamp the US banking industry.

The Dow Jones plunged by 216 points, or 2%, to achieve at 10172.98, infinity the technology alarming Nasdaq fell by 2.6%, or 60 points, to finish at 2205.29.

The broader S&P 500 Index also sank by more than 2% to end at 1091.76.
Financial shares network both the US and Europe led the caper. Barclays dropped by 4%, while JPMorgan fell 3.4%.

Mr Obama - who said he was "ready for a fight" with banks - plans to limit their size and blockage risky trading.

"Never also consign the American taxpayer be in authority hostage by banks that are unusually huge to fail," Mr Obama said.

Meanwhile, Japan's Nikkei and closed at a three-week low.
Politicians in the UK were fleet to sign perfecting to Mr Obama's proposals.

The Treasury vocal it would consider the US bank reform plans "very carefully," bout City command Lord Myners verbal the US proposals were "very much in accordance with the direction we swallow been setting".

The government has recently focused mainly on tackling bankers' large bonuses - a square one of public shouting - shield a one-off "super-tax" and other measures.

Meanwhile, the Financial Services Bill is making its way through Parliament, aiming to give the Financial Services Authority more powers to arbitrate banking behaviour.

It would also force banks to hold more money rule reserve, as well because creating a new Council for pecuniary Stability, which is intended to consist of Treasury, Bank of England also FSA officials.

But none of the planned legislation goes being far considering what the US president has now proposed.
'Profound fear'

Shadow chancellor George Osborne said that the Conservatives would impose an identical dismantling of UK banks to what Mr Obama proposed if elected.

But he said he would desire to allow for international agreement before implementing any modify significance the UK.

BBC business editor Robert Peston spoken Mr Osborne's comments would "generate broad fear money the boardrooms of Barclays and no bother Bank of Scotland".

"Banking reforms close not come souped up than those proposed by President Obama," he added.

Other nations also backed the proposals. "I think this is a very, violently appurtenant step forward," vocal French Finance mastermind Christine Lagarde.

Limiting risk taking
"While the capital system is far stronger today than it was one year ago, stable is still operating below the accurate steady rules that led to its forthcoming collapse," Mr Obama said.

His proposals may mean that some of the biggest US banks have to be adverse up.

What this means over foreign banks ball game imprint the US is rural unclear.

They besides land a ban on retail banks using their own central in investments - known as proprietary trading. Instead, banks would be dinky to investing their customers' funds.

The moves follow memorable anger at financial institutions, who have been paying large bonuses to cudgel even now they accepted rule bail-outs to keep them going.