Argumentative Essay On Dodd-Frank

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.

Firstly, the background of passing Dodd-Frank Act is the financial crisis. The direct reason of this crisis is that many banks, for the purpose of the making profits, were engaged in the high-risk subprime mortgage. Finally, the default of repayment leads to the

A survey of 37 economists conducted by the University of Chicago in 2014, for example, found that nearly all believed that without the stimulus, the unemployment rate would have risen higher than it did.” In addition to this, President Obama strategized new regulations to protect consumers and to prevent another financial crisis. In 2009 and 2010, he signed the Credit Card Accountability Responsibility and Disclosure Act, the Dodd-Frank Wall Street Reform and the Consumer Protection Act into law. The CCARD Act restricted and obligated interest rates on credit card companies and obligated them to enact transparent policies. The Dodd-Frank created the Financial Stability Oversight Council and the Consumer Financial Protection Bureau which could disintegrate banks if it was possible to fail for any reason including but not limited to subprime loans.

The Trump administration is closely monitoring the roles of independent regulatory agencies since the president signed the executive order to reduce the regulatory burdens created by Dodd-Frank. Since many people consider the CFPB an independent agency, several student loan debt holders are left to wonder if a federal agency will exist to help protect them from predatory lending practices.

Things are not always what they seem. The Republican Party has now captured the House of Representatives and the Senate. The results of the mid-term elections were not surprising, since history has shown that when a president has low approval ratings, the opposing political party usually gains seats in Congress. One of the Republicans’ main arguments was the failure of the Affordable Care Act. Their platform was that they would work on their constituents’ behalf to repeal the health care law. However, reports show that the health care law is working, providing health insurance for many who previously did not have any health insurance. How did the Republicans convince their constituents to believe the contrary? Plato would argue that

“The massive legislation will help 32 million Americans get health insurance coverage and bans insurers from denying coverage to those with preexisting illnesses.” (Clemmitt) With the health care reform, it covers many things that Americans are struggling to receive such as acceptance because of illness and kicking out anyone off going young adults from parents plans. Obamacare is a benefit for those in need and have been let go cause of illness or who just in need but will not get accepted for reasons.

Many paths will lead to the same goal, but which one is the right one for you? This question revolves around the highly debated Affordable Care Act which saves many lives each year and yet different demographics consider repealing this act necessary without a plan to replace it immediately. Because the Affordable Care Act prevents the escalation of diseases and the deaths of the thousands of Americans, the act should not be repealed but only revised to save lives and progress the country in the direction in universal health care because everyone deserves health care. The Affordable Care Act sparked a debate between Democrats and Republicans when President Obama enforced it in 2010 and continues to do so because the amount of control it gave

Some of the more recent issues surfacing with the Affordable Care Act would be a fight in congress regarding a repeal of the legislation. The Republican party campaigned for several years on the premise of repealing the Affordable Care Act. The party won control of the Senate and the White House in 2016. This has not really helped much, however, as the Republicans in the Senate have been unable to agree on a way to dismantle the law.

The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank securities (Heakal, 2003).

Before the ACA was enacted in 2010, many Americans were uninsured or underinsured. Health insurance was hard to obtain due to the high prices and lack of accessibility. Being able to have access to care is important because it protects citizens from health crisis, which can lead to poverty. The mandate included many elements that reshaped healthcare to be more affordable, while still offering quality care. For instances, the ACA allows people with pre-existing conditions to obtain health insurance and most importantly, 80% of the profits made by insurance companies from premiums must be spent on healthcare (Kaiser Foundation 3). The ACA is effective because it will protect American citizens from financial burden, increase access to care and

The purpose of Dodd-Frank Act is focused on restrictions on the banking sector; repealing Dodd-Frank will enable the financial market to return to a more volatile state. Moreover, the purpose of the Volker Rule is to prohibit banks from proprietary trading and restrict banks investments in hedge funds and private equity funds to prevent banks from high-risk trading activities. Therefore, from the lessons we all have learned during the 2008 financial crisis, we should not reduce government regulation in the financial sector. Instead, we should maintain our policies, continue to monitor the health of our economy, and prevent corporate misconduct. In addition, I will recommend Mr. Sessions continue to follow the Yates Memo to hold executive level individuals accountable for their misconduct. And I will also support Senator Warren's proposed 21st Century Class Steagall-Act of 2017. This act will protect our economy by restricting the bank's ability to engage in high-risk activities, reducing the size of "too big to fail" corporations, and minimizing the probability of government bailout. As one might be expected, my recommendation to Mr. Sessions will face a lot of setbacks. However, as a public servant, protect the law, maintain its fairness regardless the areas

Position on Topic: Obamacare is one of the most highly argued topics in today’s economics and politics alike. Many people believe that its goal of universal healthcare is a good thing and that healthcare should be a right as a U.S citizen. Others believe that Obamacare is a disaster causing people to pay more unnecessary taxes in order to compensate for people who are unable to pay for healthcare due to poverty status and is economically unfavorable. There are also people who believe it should be kept but many changes need to be made in order to make it effective. Considering both arguments, I believe Obamacare should be repealed and replaced with a new healthcare policy.

I believe the Frank-Dodd Act accomplishes what it is intended for because of the many changes banks now do their business. Banks should be kept as banking and not risking money that people trust them to save. Money is hard to earn and people want to put away some in order to have a good retirement. Before if you went overdraft at the bank they used to charge you an “overdraft fee” regardless you wanted them to approve it or not. Now you have the option of what many banks call “overdraft protection” where they still charge you the overdraft fee and cover your purchases. Now you have the choice to permit the bank. Before credit card application were

The Dodd–Frank Wall Street Reform and Consumer Protection Act were signed into federal law on July 21, 2010 by President Obama. These laws were passed in response to the financial crisis of 2008 with intent