White House economic adviser Lawrence Summers defended the administration's plan to overhaul financial regulations Friday, saying the proposals are not an attack on banks, but an attempt to create a sounder financial system.

The administration's latest proposal — to prevent commercial banks from trading on their own accounts or running hedge funds and private-equity firms — fits in with the overall effort to reduce risk taking, he said. The other aspects involve raising capital requirements and closing regulatory loopholes that have allowed financial firms to play off various agencies.

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