Breaking News-RTRS-Obama lays out Volcker rule specifics for Congress

WASHINGTON, March 3 (Reuters) - U.S. banks would be banned from proprietary trading and other large financial firms would face quantitative limits on such activity, according to draft language on the so-called "Volcker rule" from the Obama administration.
Banks would also be banned from investing in or sponsoring hedge funds and private equity funds, according to a draft version of the legislative language obtained by Reuters. A final version of the language is expected to be sent to lawmakers later on Wednesday.
The proposal also would prevent a financial firm from acquiring another company if the resulting firm would have more than 10 percent of the liabilities of the financial system.