Commerzbank's Chief Executive cautiously welcomed Barack Obama's proposals for tougher banking rules, as politicians and regulators accuse bankers of dragging their feet on financial reform.

Martin Blessing, the head of Germany's second largest bank told weekly paper Frankfurter Allgemeine Zeitung am Sonntag, I think the basic idea is sensible.

Blessing however said he would need more information about how Obama's proposals work in detail before passing final judgment adding, I can't see the use in having a completely unregulated banking sector.

Obama's proposals, which need congressional approval, would prevent banks or financial institutions that own banks from investing in, owning or sponsoring a hedge fund or private equity fund.

(Reporting by Edward Taylor)