Obama's proposal throws global banking industry into turmoil

President Barack Obama proposed a sweeping overhaul of Wall Street that is reverberating around the world. The proposal calls for banks to be prohibited from "owning, investing in or sponsoring" private-equity groups and hedge funds. It would also ban them from running their own trading desks. The move has been pushed by former Federal Reserve Chairman Paul Volcker for months. The reform could force the restructuring of Goldman Sachs, JPMorgan Chase and other major financial institutions. Next week, officials are set to meet leaders in London about how Obama's proposals could be implemented in the U.K. Critics of Obama's plan said it shows a lack of global coordination on financial regulation.

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