President Barack Obama on Thursday announced a plan to limit the size and scope of US banks and finance firms in a bid to roll back corporate excess and limit dangerous risk-taking. The announcement was the latest attempt by the White House to harness popular fury at massive Wall Street bonuses and tight credit markets, which is adding up to an angry political mood in a crucial election year.

The plan will effectively force finance firms to chose between proprietary activities, trading in stocks and sometimes risky financial instruments and commercial activities, like making loans and collecting deposits. "While the financial system is far stronger today than it was one year ago, it is still operating under the exact same rules that led to its near collapse," Obama said in an advance copy of his remarks on the plan.

"My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform," Obama said. "It is exactly this kind of irresponsibility that makes clear reform is necessary."

Copyright Agence France-Presse, 2010