"The proposed changes don't make much sense as pure regulatory proposals -- if the financial system as a whole gets into trouble you have to rescue it whether it consists of ten big banks or a hundred small ones. "It's a bank's holdings in hedge funds and PE funds which have provided much-needed stability when the value of other assets was swinging around like a flag in a gale. "Europe is already heading towards a separation of commercial and investment banking through the Basel/Capital Requirements Directive process. However the big question is whether we will get away with a separation within groups, that is we restructure European banks into a commercial subsidiary and an investment bank subsidiary, similar to the existing U.S. model, or whether it will be necessary to break bank groups up completely into deposit-taking commercial lenders and "merchant banks" - this is my "back to the future" argument. Obama seems to want to go all the way towards a complete break-up, and this move must make it more likely that Europe and the G20 will follow this line."
"The really interesting thing is what Europe is going to do, and I can only think they will copy Obama." "These measures are not going to be restricted to the U.S., the anger that Obama and others have expressed is reflected in Europe."
"New regulations are being proposed thick and fast and the industry faces major uncertainty from these."
"Obama's proposals are a return to Glass-Steagall in all but name."