The Dodd Frank Act Was Enacted

While there are many more provisions and over 2000 pages included in the Dodd Frank Act most of these provisions have yet to be implemented. The Know before You Owe Act and the Credit Card Act are two provisions that one can actually see the change and progress happening within these acts. These provisions are two examples on just how beneficial the Dodd Frank Act is and will continue to be towards consumers. This act helps consumers to understand and know just what they are purchasing and nothing is hidden so that brokers and banks can’t take advantage of consumers like what happened in 2007 and

more stringent regulations. After a careful examination of the Dodd-Frank, it can be shown that

Final summation concerning this matter would be that despite its initial good intentions, The Dodd-Frank Wall Street Reform and Consumer Act is severely lacking in its claims to strengthen and secure the financial stability of the United States. If it is an actual fact and not an alternative fact that the Act itself has never been fully implemented during Obamas presidency, then it serves no purpose to our country. Much like the failure of the Banking Act of 1933, it is unsurprising to see the impending

In simple terms, Dodd-Frank is a law that places major regulations on the financial industry. It grew out of the Great Recession with the intention of preventing another collapse of a major financial institution like Lehman Brothers. Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks. It became the law of the land in 2010 and was named after Senator Christopher J. Dodd (D-CT) and U.S. Representative Barney Frank (D-MA), who were the sponsors of the legislation. But not all of the provisions are in place and some rules are subject to change, as we'll see. The bill contains some 16 major areas of reform and contains hundreds of pages, but we will focus here on what are considered the major rules of regulation. One of the main goals of the Dodd-Frank act is to have banks subjected to a number of regulations along with the possibility of being broken up if any of them are determined to be “too big to fail.” To do that, the act created the Financial Stability Oversight Council (FSOC). It looks out for risks that affect the entire financial

In the wake of the 2008 financial crisis, a Democrat Congress and President Barack Obama passed the Dodd-Frank Act, which in turn unleashed a flood regulations and created the CFPB. While their intent of protecting the little guy is praiseworthy, the legislation had the opposite effect. Since its inception, the CFPB became

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed to redesign numerous areas of the US regulatory system and to protect consumers against mortgage companies, banks, and other entities that were gambling and taking excessive risks with the consumers’ financial assets7. The act promised to restore America and create new jobs for those who had lost everything during the financial crisis of 2008. When the crisis occurred, Wall Street “did not have the tools to break apart or wind down a failing financial firm without putting the American taxpayer and the entire financial system at risk,” and Washington did not have the power to oversee and limit the risk-taking behavior that was taking place at the time7. The act is composed of sixteen titles, each one can be considered a powerful law individually; however, the act comprised them all together to have a major impact on the economy.

Since 1933, the United States government has provided varying degrees of regulation designed to protect the average banking customer from the risks of investment banking. The Glass-Steagall Act, the Dodd-Frank Act, and the Volcker Rule were implemented to try to keep banks from investing consumer deposits into riskier securities but deregulation and lobbying have created instability.

Along with the greater profitability restrictions imposed on banks from the Dodd Frank comes the banks will for greater cost management, meaning job cuts. Already the Banks have begun laying employees off from burdening restrictions leading to this brutal method of retaining necessary capital needed for operations ("Wall Street Journal"). The bigger the bank, the greater resentment they have over this act. Their financial statements will have to retain a greater amount of compliance and transparency as well. Because of the large prominence of “shadow banking” and the concealed balance sheet elements that came along with this practice, the banks now are imposed with greater regulation to prevent these stealthy tactics of borrowing and investing. These restrictions, in my belief, will provide greater protection to the consumer but will also provoke institutions to begin innovating financial instruments to get around barriers, just as they did in the past with interstate banking and early consolidated services even before Glass-Steagalls act. The bankers oppose the act due to their cut in profits. Reduced outlets in revenue from specific revenue generating activities have been capped and larger expenses in order to comply with the new rules have also greatly cut profitability. The same notion is held with brokers. Because of the greater compliance costs served

Mortgage-backed securities and other obscure financial instruments played a large role in exacerbating the damage of the crisis, and people outside of Wall Street demanded more transparency and legislation to monitor and limit the activity of fund managers. As a reaction to the 2008 Financial Crisis, the Obama administration developed the Dodd–Frank Wall Street Reform and Consumer Protection Act, which President Obama signed into federal law on July 21, 2010. The combination of social demand and regulatory developments led to a new desire for socially-responsible

In the past hundred years, the United States has dealt with and overcome many difficult situations. Many believe that those specific situations revolved around wars or terrorist, but the sad part is that, many of those difficult situations were cause by the people who are in charge of our country. The culprits behind these problems are generally greedy people who have access to higher power or are in control. Examples of those people are individuals in congress, the white house and many people on Wall Street. A great example of a difficult and unfair situation is how Wall Street killed this hopeful financial reform. A few years ago, Obama signed the Dodd-Frank Wall Street Act and Consumer Protection Act. This Act was created so that the bad

The Dodd-Frank Act promotes a more rigorous and comprehensive regulatory framework for financial system, which deeply affects the development of both US and global financial institutions.

The Dodd-Frank Regulatory Reform Act is one of the most influential regulations in response to the financial crisis. This acts primary focus is to prevent future financial system collapses, by reducing excessive risk taking by financial institutions and by protecting the consumers (Rose & Hudgins, 2013). In addition, the Dodd- Frank Act gives the Federal Reserve the authority to monitor financial institutions and gives them the power to restructure or liquidate firms that are financially inadequate (Investopedia, 2010). Fortunately, since the 2008 financial crisis a number of new regulations have been enacted, the Dodd-Frank Act is the most monumental new regulation, because it seeks to prevent future bank bailouts and the risky behaviors of financial institutions. While these regulations may not be enough to fully prevent another financial crisis, the necessary steps have been taken to minimize the disastrous effects of overt risk taking by financial

This essay looks at two articles which were written within the last three months about reforms that are being made to the United States financial system. The first article is a review of news from Secretary Geithner that the United States is close to making some real reforms. He talked specifically about hedge funds and risk-taking within the banking system in general (Reuters, 2012). The second article discussed the issues that are present with Fannie Mae and Freddie Mac, how both sides of the aisle want to dismantle them, and the inherent problems in doing so (Chadbourn, 2012). The comments from readers of the two articles were specific, and for the most part, showed some intelligent discussion.

The financial crisis of 2007-2009 sent shock waves around the world, affecting some of the world’s largest financial institutions, along with negatively impacting millions of American citizens. Who is to blame for such a crisis and how do we try to prevent another? Well, the cause of this crisis is not merely that simple. This crisis was caused by a complex series of events with all actors within the financial market to blame. However, I wanted to understand how these various actors and causes all occurred while under the supposed watchful eye of regulators, whose role within the market is based upon the regulation of these financial institutions to prevent crisis from occurring in the first place.

During the 2008 panic and recessions, many worried that this would soon happen again if there wasn’t additional regulations implemented in preventing another crisis. In 2010, according to Harvard Law, he Dodd-Act was reformers, improving customer protection, reduce possible and future crisis, and end taxpayer bailouts. Another act reformed was Basel, requiring banks to have more sustained capital and increasing bank liquidity reserves. Banks are probably now stronger, healthier now than ever. It is much safer however still risks comes, but have immensely improved in the last decade.