Obama's Bank Backlash Unsettles Wall St

photo via ReutersHopeTracker| Reuters writes an informative analysis of different possibilities for major banks if they give up their private equity and hedge fund investments. The scenarios are multiple and the biggest problem seems to be the element of uncertainty.

Major impact on investing client’s money seems limited. The biggest challenges come from the firms’ trading their own capital with an eye on maximizing short-term gains to insure maximum bonuses on an annual basis. The argument is that in meeting their own short-term financial goals for partners and employees, the big banks aren’t interested in the long-term health of the American economy or its citizens.via Reuters