The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive financial reform legislation package passed in 2010 in the United States. A direct response to the 2008 sub-prime mortgage and subsequent financial crisis, its broad sweeping reforms focused on consumer lending reform as well as creating agencies and controls to keep financial institutions in check and from growing "too big to fail." Dodd-Frank created multiple agencies: It also directly enacted reforms such as: There are dozens of other reforms and committees created by the Dodd-Frank Act, greatly expanding the already complex financial regulatory system. Some people believe that complexity is what lead to the financial crisis in the first place, where murky regulations created loopholes for questionable business practices to take place. There have already been major reversals of some of these policies for that reason under the Trump administration. How do you feel on the matter? Is more regulation the answer or should the government let market forces prevail?Dodd-Frank Act Defined
Dodd-Frank Agencies
Dodd-Frank Law Reforms
Dodd-Frank Committees
Dodd-Frank Wall Street Reform and Consumer Protection Act FAQs
The Dodd-Frank Act is a massive financial reform legislation package passed in the United States.
The Dodd-Frank Act was passed in 2010.
Dodd-Frank created three agencies; the Consumer Financial Protection Bureau, the Financial Stability Oversight Council, and the SEC Office of Credit Ratings.
Dodd-Frank was a response to the 2008 sub-prime mortgage and financial crisis. It reformed consumer lending and created agencies to keep financial institutions from growing “too big to fail.”
Direct reforms include: The Volcker Rule, which stops banks from speculative investing while holding FDIC-insured consumer deposits; Whistleblower protections and rewards that pay employees for reporting wrongdoings of their employers to the government; Expansion of investment adviser registration to include previously excluded hedge fund managers.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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