ADR Report-Foreign shares tumble as banks weigh

NEW YORK Jan 21 (Reuters) - Overseas shares traded in the United States fell on Thursday, following global equity markets lower and as banks were hurt by U.S. President Barack Obama's proposed limits on American banks' risk-taking.

Obama laid out new rules to prevent banks or financial institutions that own banks from investing in, owning or sponsoring a hedge fund for proprietary profit. Proprietary trading -- when a firm uses its own money to make bets on markets -- has been a a driver of earnings for some major banks. For details, see [ID:nN21115923]

Among the laggards, U.S.-listed shares of Barclays (BCS.N) shed 7.4 percent to $18.32 and Deutsche Bank (DB.N) tumbled 4.2 percent to $65.79.

Miners Rio Tinto RTP.N and BHP Billiton Plc (BBL.N) were hurt after a report that Australia may rejig the way it taxes mining operations to raise more money under sweeping tax reforms. Rio Tinto lost 6.9 percent to $213.42, while BHP Billiton gave up 4.7 percent at $62.89. [ID:nLDE60K2B3]

The chief executive of LG Display Co Ltd (LPL.N) said the liquid crystal display industry is unlikely to suffer oversupply in 2010 as strong demand from China and new products brighten the sector's outlook. Shares of LG Display, the world's second-biggest maker of LCD screens, rose 1.8 percent to $18.05. [ID:nTOE60J0AP]

Anheuser-Busch InBev (BUD.N) and its unions reached a deal to end a two-week blockade of Belgian breweries that was drying up supply of local brands. Shares of the world's largest beer maker slipped 2.7 percent to $47.92. [ID:nLDE60K1YF]

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR fell 2.4 percent, while banks helped drag the broad S&P 500 .SPX down nearly 2 percent.

The Bank of New York Mellon index of leading Asian ADRs .BKAS slid 1.3 percent. Hong Kong stocks fell to their lowest level in more than three months after strong economic data from China reignited fears of further tightening measures. Japan's Nikkei was lifted by tech shares, but worries over China capped further gains.

The Bank of New York Mellon index of leading European ADRs .BKEUR fell 2.8 percent. European shares fell for a second day, pulled lower by banks and miners.

Receipts with the Bank of New York Mellon index of leading Latin American ADRs .BKLA shed 3.6 percent. (Reporting by Leah Schnurr; Editing by Kenneth Barry)