Wall Street tumbled on Thursday after US President Barack Obama proposed rules aimed at making the financial system safer by preventing the biggest banks from taking excessive risks. "This is going to have a tremendous impact on big-name brokerage firms, like Goldman Sachs and J.P. Morgan," said Ralph Fogel, investment strategist at Fogel Neale Partners in New York.

The Dow Jones industrial average was down 210.62 points, or 1.99 percent, at 10,392.53. The Standard & Poor's 500 Index shed 20.28 points, or 1.78 percent, to 1,117.76. The Nasdaq Composite Index lost 28.61 points, or 1.25 percent, to 2,262.64. Goldman Sachs shed 4 percent to $159.54, giving up earlier gains after it reported stronger-than-expected fourth-quarter net income. Citigroup fell 5 percent to $3.26 and Bank of America dropped 6 percent to $15.50. Morgan Stanley fell 5 percent to $29.13 while J.P. Morgan Chase & Co shed 5 percent to $41.04.

Copyright Reuters, 2010