Global Stocks Tumble on Obama's Bank Reform Plans
Thanks Barack. Global stocks crashed this week after Barack Obama announced new curbs on banks.
Commodity prices tumbled and global stocks posted their worst week in months on Friday as investors turned to safer assets after U.S. President Barack Obama’s move to curb risk-taking by banks sparked widespread unease.
Oil slid under $75 a barrel as nearly all commodity prices were pressured by Obama’s proposals on Thursday to limit banks’ trading activities, which have boosted their presence heavily in commodities.
U.S. stocks fell more than 2 percent in the worst week since March for the Dow, and since October for the Nasdaq and S&P 500. The slide erased all gains for stocks in 2010.
The CBOE Market Volatility Index , known as Wall Street’s fear gauge, rose 55.6 percent since Wednesday in its biggest three-day jump in almost three years.
The sour mood intensified on Friday with uncertainty over the pending confirmation vote for Federal Reserve Chairman Ben Bernanke to a second term as two Senate Democrats said they would vote against Bernanke.