Prop trading: RIP?

I could not help but be reminded of that risk/reward/punishment framework last week, when the Obama Administration unveiled new proposals clamping down on the too-big-to-fail Wall Street banks that, despite playing a part in the current economic crisis, have so far outmanoeuvred regulatory efforts to rein them in.

The president's proposals would effectively end proprietary trading at banks that take commercial deposits, and these firms would be prohibited from owning, sponsoring or investing in