Bankers Dislike Regulatory Proposals

The American Banking Association,a trade group,is uncomfortable with the current climate in Washington.Ed Yingling,ABA president,says there's a general situation that is of concern to bankers:that the language portrays banks as risky.The financial crisis should be seen as international in origin,Mr.Yingling believes.The Obama administration's definition of proprietary trading means banks can't have a bond portfolio,in his estimation.All banks have one,Mr.Yingling indicated.
The U.S. has been the world leader for financial services for many years,Ed Yingling recalled.Now only six U.S. banks are in the top 50 of the world.Without coordination of regulation with international authorities,there would be no U.S. banks among the global leaders,Mr.Yingling warned.
Under the Obama administrations proposals,banks' share of the capital markets would be capped at 10%;they could no longer own hedge funds;and proprietary trading,or trading banks do for their own profit,would be taken away from them,resulting ultimately in less money for lending,critics of the proposals point out.