Analysis Of The Dodd Frank Wall Street Reform And Consumer Protection Act

The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the

The Consumer Financial Protection Bureau, or CFPB, was created as a tool of financial reform in the legislative package that was authorized by the Dodd-Frank Act, but the law specifically includes terms that prohibit setting interest rate limits, which is contrary to the 36-percent limit that the CFPB is currently trying to mandate as a universal limit on short-term rates. The specifics of the Dodd-Frank Act, according to the www.dodd-frank-act.us, state that the legislation grants, "NO AUTHORITY TO IMPOSE USURY LIMIT" unless such a limit is first passed through due legal processes.

On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is commonly referred as the Dodd-Frank Act. This act was passed as a response to the Great Recession in order to prevent potential financial debacle in the future. This regulation has a significant impact on American financial services industry by placing major changes on the financial regulation and agencies since the Great Depression. This paper examines the history and impact of Dodd-Frank Act on American financial services industry.

The Federal Government needs to make sure to enforce strict guidelines on who can and cannot be accepted for a home loan, and not allow big investors to borrow excessive money at low interest rates to inflate the investor’s financial advantage. If the government starts allowing lower standards on mortgages, we are going to end up in the same catastrophe once again. In an article written by U.S. News and World Reports entitled Should the Federal Government Provide Support to the Mortgage Market?, the Federal government and the President attempted to get involved with the housing market. The passage implicated that Obama wanted to do away with federally funded conglomerates Fannie Mae and Freddie Mac and implement another type of government assisted program ("Should the Federal Government"). The program would prevent the mistakes made by Fannie and Freddie which created the original “housing bubble burst” ("Should the Federal Government"). One of the Senate bills suggests the government create “a new agency, the Federal Mortgage Insurance Corporation to replace Fannie and Freddie” ("Should the Federal

In 2007-2008 the US went into a recession, a financial crisis that has since then taken five years to rebuild. During that time millions of Americans were unemployed and faced many economic struggles which negatively impacted the real estate market causing a multitude of foreclosures. The reason for this recession was because there was no authority over banks and they were not being monitored properly. Banks were able to gamble with the finances of millions of people with no consequences towards their actions. The Dodd Frank Act Wall Street Reform and Consumer Protection Act of 2010 was put into place to make sure that nothing like this ever happened again; The Dodd Frank Act implemented and set laws into place to make sure that banks and financial

On June 27, 1934, President Franklin Roosevelt signed the National Housing Act, with the goal to improve the housing standards and conditions, as well as provide a mutual mortgage insurance system. It came at a time when at least half of the nation’s home mortgages were in default, millions of people were losing their homes, and the construction industry was halted. This law in turn created the Federal Housing Administration (FHA). The FHA set standards for construction and underwriting, and it provided mortgage issuers, such as banks and private lenders, a federal guarantee of repayment. The purpose of this was to revive mortgage lending for house construction, home improvement projects, and home purchases. Not only did the FHA’s program

A brief history into its creation is when this all began when the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was put into place July 21, 2010 by President Barrack Obama, in order to combat the Great Recession. This act requires the Consumer Financial Protection Bureau (CFPB) to issue rules and systems that organize certain disclosures provided to consumers when applying for and closing a mortgage loan under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The Truth in Lending Act (TILA) was brought into effect May 29, 1968 as a United States federal law, which was designed to promote informed use of consumer credit, by requiring disclosures about its terms and cost to standardize

The Dodd- Frank law on whistle-blowing bounty program is an upgrade from the Sarbanes- Oxley. The Sarbanes – Oxley whistle -blower program protected employees from getting retaliated upon by their employers when they report misconduct within the company they are employed. Dodd- Frank law took is a step further, an employee who reports financial misconduct are entitled to receive 10 percent to 30 percent of the fines and settlements if the conviction is upheld and the penalties exceed $1 million dollars (Ferrell, 112, 2013). The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in 2010 (Ferrell, pg. 110, 2013). The focal mission of the Consumer Financial Protection Bureau is to make markets for

The Consumer Financial Protection Bureau, more commonly referred to as the CFPB, can trace its origins to the 2008 financial meltdown. Authority for the creation of the CFPB stems from the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was named for the bill's sponsors, Sen. Chris Dodd and Rep. Barney Frank. The Dodd-Frank was aimed primarily at regulating banks, the stock exchange, mortgage lenders and similar high-value financial markets. However, the CFPB was also given the power to combat "abusive, unfair or deceptive" practices that impacted average consumers. It is this power that the CFPB has invoked in its war against cash advance loans and other small-dollar, high-risk, short-term loans. The war began almost as soon

The united states is currently the proprietor of nearly nineteen trillion dollars in debt, and that number continues to increase to by 2.53 billion per day. With close to three hundred million people in the united states each shared citizen’s debt would be around sixty-one thousand dollars. (debt calculator website). In 2008 at the end of the George bush administration the country was said to be in the worst economic recession since the great depression. The current president of the united states, Barack Obama and his administration proposed a bill to congress in 2009, that was believed to assist in the prevention of another recession. This bill was titled “The Dodd Frank initiative and consumer protection act.” It was named after the two legislators who created it, Chis Dodd and Barney Frank. This initiative was, and continues to be, considered a “massive” piece of legislation. (quote). Although introduced, It did not pass in congress until July 21, 2010. In addition to assisting with the economy, this act was created to help insure that consumers would not be easily taken advantage of by major financial agencies and corporations. All of us, no matter age, gender, or financial status are consumers. This act has put checks and balances in place that will protect all families from making financial decision that might cripple them into a situation that may make it impossible to get out

On July 21, 2010, in Washington D.C., President Barack Obama signed into federal law the Dodd Frank Wall Street Reform and Consumer Protection Act, better known as the Dodd-Frank Act. The much criticized law, was passed as a response to financial effects of the financial crisis of 2007-2010 and presented changes to the country’s regulatory environment directly affecting all federal regulatory agencies and the financial services industry. The controversial law.

The Glass Steagall Act was passed on 1933, which is also known as The Banking Act to tighten regulation on the way banks did their business. This act was written as an emergency measure when about 5,000 banks failed during the Great Depression. Banks mostly failed because of the way they would invest with money. The act prohibits banks from investing money on investments that turn out to be risky. Banks could no longer sell securities or bonds. The act also created Federal Deposit Insurance Corporation (FDIC) to protect the deposits of individuals, which is still used to this date. The FDIC in this era insures your deposits in your bank up to $250,000. This gave the public confidence again to deposit their money in the bank. In 1933

Q. 1. What were the major factors that led to the recent financial crisis? How did we get here?

Allowing or denying traditional banks to participate in proprietary trading is a controversial subject depending on the trading approaches these institutions carry out. Obviously, participating banks intent is usually the maximum profit to increase their capital, whereas non-participants financial institutions may choose to just earn commissions from their clients’ transactions. Indeed, many traditional banks such as Lehman Brothers, in the past, have initiated risky investment strategies with high returns due to the lack of federal regulations at the time. However, all lessons learned from previous painful experiences seemed forgotten when the market recovery started. Therefore, the Volker rule, which is part of the Dodd-Frank reform on Wall

The Federal Reserve Bank has made advancements in the yeas past to balance out the present economy. The actualized the Dodd-Frank Act; this was presented in 2010 amid the Obama organization. It was intended to help the present state by taking out orderly dangers in an economy. While looking at the late years and advancement toward the job with inflation postures challenges for the fiscal arrangement. The board should look at the patterns influencing the U.S Work Market, profitability development and the impacts of the economy of international advancements.