Obama forwards Volcker rule to Congress

WASHINGTON, March 3 (UPI) -- The Obama administration forwarded its draft of a Volcker rule limiting the size and activity of U.S. financial companies to Congress Wednesday.

The White House proposed limiting bank shares to 10 percent of overall liabilities and prohibiting banks from "purchasing or selling, or otherwise acquiring and disposing of, stocks, bonds, options, commodities, derivatives, or other financial instruments for the institution's or company's own trading book," the White House said in summary of the draft bill.

There was already skepticism that the bill would make it into law as Republicans were particularly set against it, The Financial Times reported.

Criticism came from as far away as Britain, where First Secretary of State Peter Mandelson called the proposal "too difficult" and urged President Obama to focus on reforms outlined by the Group of 20 nations.

"It's the principle and practice of regulation you have to focus on, not the size of banks," Mandelson said.