On January 21st, the President announced a proposal to limit the proprietary trading activities, as well as the size, of the largest depository lending institutions. Since then, the financial services industry has reacted with concern and, according to a Los Angeles Times report, has begun lobbying against the proposal. Reaction. The Senate Banking Committee will hold hearings on the plan with former Federal Reserve Board Chairman Paul Volcker, a proponent of the plan, as the lead off witness. Hearings. House Financial Services Committee Chairman Barney Frank stated that President Obama's proposed restrictions on proprietary trading have both domestic Congressional and international regulatory support. Support. FDIC Chairman Sheila Bair indicated support for proprietary trading limits but questioned their effectiveness in observing that only a very few depository lending institutions engaged in the type of risk-taking associated with the financial crisis. On the other side of the debate, Treasury Secretary Timothy Geithner stated that risky lending, not trading, caused the crisis. Regulatory Response. Separately, Reuters reported the CEO of NYSE Euronext said it would be almost impossible to differentiate between a bank's proper and improper trading. Implementation.