Dodd frank wall street reform and consumer protection act summary
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- Summary of Dodd-Frank Financial Regulation Legislation
- Dodd–Frank Wall Street Reform and Consumer Protection Act
- Dodd-Frank Wall Street Reform and Consumer Protection Act
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The Dodd-Frank Wall Street Reform and Consumer Protection Act is a series of federal regulations passed in an attempt to prevent a future.and
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed during the Obama administration in as a response to the financial crisis of Named after sponsors Sen. Christopher J. Dodd D-Conn. Barney Frank D-Mass. Dodd-Frank established a number of new government agencies tasked with overseeing the various components of the act and, by extension, various aspects of the financial system. President Donald Trump pledged to repeal Dodd-Frank and, in May , signed a new law rolling back significant portions of it.
The law overhauled financial regulation in the aftermath of the financial crisis of — , and it made changes affecting all federal financial regulatory agencies and almost every part of the nation's financial services industry. Responding to widespread calls for changes to the financial regulatory system, in June President Barack Obama introduced a proposal for a "sweeping overhaul of the United States financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression ". Most congressional support for Dodd-Frank came from members of the Democratic Party , but three Senate Republicans voted for the bill, allowing it to overcome the Senate filibuster. The CFPB was charged with protecting consumers against abuses related to credit cards, mortgages, and other financial products. The act also created the Financial Stability Oversight Council and the Office of Financial Research to identify threats to the financial stability of the United States, and gave the Federal Reserve new powers to regulate systemically important institutions.
Dodd-Frank put regulations on the financial industry and created programs to stop mortgage companies and lenders from taking advantage of consumers. The dense, complex law continues to be a hot topic in American politics: Supporters say it places much-needed restrictions on Wall Street, but critics charge Dodd-Frank burdens investors with too many rules that slow economic growth. The Great Recession , a crisis that left millions of Americans unemployed and sparked worldwide economic decline, began in December and lasted well into In September , financial instability peaked when the fourth largest investment bank in the United States, Lehman Brothers, collapsed. Stocks plummeted, and the markets froze.
The legislation, which was enacted in July , created financial regulatory processes to limit risk by enforcing transparency and accountability.
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The Gramm-Leach-Bliley Act repealed it in The Dodd-Frank Act is named after the two Congressmen who created it. Senator Chris Dodd introduced it on March 15, On May 20, it passed the Senate. Many banks complained that the regulations were too harsh on small banks. Here are eight ways that Dodd-Frank implements its goals and makes your world safer.
This post is based on a Paul Weiss client memo by Mr. Huntington, Robert M. Hirsh , Manuel S. Frey , Mark S. Additional posts relating to the Dodd-Frank Act are available here. The conference report must be approved by the House and Senate before the bill is presented to the President for signature. The House is expected to approve the conference report on June 29 and the Senate is expected to vote shortly thereafter.
Summary of Dodd-Frank Financial Regulation Legislation
Dodd–Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank was passed in in order to protect consumers from the unfair and deceptive practices and products that led to the crisis; give regulators the tools to ensure that no Wall Street firm grows too large, complex, or risky so as to threaten the global economy; create transparency in previously opaque markets; provide shareholders with more say over the governance of corporations; and to provide financial regulators with new tools to detect and prosecute fraud. As a result, the progress regulators have made to implement the law remains precarious. Click on the following links to learn more. Since its inception in , the CFPB has been a remarkable success story , standing up for consumers and service members who have been subject to the deceptive practices of unscrupulous corporations and financial institutions. In addition, the CFPB has finalized several mortgage rules that help guard against the risky and irresponsible lending that brought the economy to its knees just five years ago. For months everyone in financial markets has been talking about liquidity.
Dodd-Frank Wall Street Reform and Consumer Protection Act