Obama to back limiting size and risk-taking by banks

Obama backs limits on bank risk

NEW YORK — President Obama will announce Thursday proposals to limit the size of U.S. banks as well as their risk taking, The New York Times reported late Wednesday, citing anonymous officials.

He also would bar proprietary trading of financial securities by commercial banks, the newspaper said in a report published on its Web site. Big losses in the trading of such securities, including mortgage-backed securities, set the credit crisis of 2008 in motion, the paper said.

Obama’s announcement is expected to come at an appearance in Washington D.C. with Treasury Secretary Timothy Geithner, an administration official said, speaking on the condition of anonymity because the talks were private, the newspaper reported.