Dodd Frank Act Essay

The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank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

In the lead up to the current recession, when the real estate market began to fall, there were so many investors shorting stocks and securitized mortgage packages that were already falling, that the market simply fell further. There were no buyers at the bottom, and the professional investors made millions off of the losses of others. Beyond this, there was no real federal regulation for securitized mortgages, since there was no real way to gauge the mathematical risk of any given package. This allowed the investors to take advantage of the system and to short loans on real people’s homes. Once these securities were worthless, many of the homebuyer’s defaulted on their mortgages and were left penniless. No matter from which angle this crisis is looked at, the blame rests squarely with the managers who began the entire cycle, the ones who pursued the securitization of mortgages. Their incompetence not only led to the losses of Americans who have never invested in the stock market, but to losses for their shareholders.

Obama care was composed to assist the general public with America’s shameful health care system. The law was passed to reform health coverage as much as could reasonably be expected. The new law primarily affects individuals who pay for health coverage on their own; it strengthens the consumer protection laws in the health care market. Consumer protection laws are requirements that insurance markets must adhere to while selling their insurance; it prevents consumers from being cheated while shopping for health insurance. Another reason behind

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

No, I do not agree with the decision of repealing and scaling back areas of the Dodd-Frank Act. However, I understand some people do not want the government meddling in our financial and banking industries. For instance, I believe that some businessmen and women want the economy to prosper and allow them to continue to make more money without the government's involvement. This is not morally right, and in years before 2010, the way they were generating billions of dollars was at the expensive of the our government, majority of the people in the United States, and others around the globe.

The Dodd–Frank Wall Street Reform and Consumer Protection Act was implemented in 2010 as a response to the 2008 financial crisis, aiming at improving the stability of U.S. financial system, solving “too big to fail” problem, and protecting consumers’ rights.

Senator Paul Sarbanes and Representative Michael Oxley created the act to keep businesses from producing false financial documents just to get investors to invest into the company because it appears that the business is doing very well. Companies like Enron under this new act couldn’t produce the false accounting statements without first having an auditor coming in and checking over the inventories or book keeping data. Now investors can relax a little more and not worry that the financial statements are falsified or are generalized and rounded up to make the company look good. Investors can trust that the auditors are doing their job and verifying the books and data for those companies.

This bill has done many things for the united states and has given American consumers the confidence needed in order to trust their hard earned money in the hands of agencies and corporations. As discussed there are many pros for the American people. An obscene amount of corporations and small business have taken hits and lost large profits during the six year tenure of this bill, as well. Many believe that this bill has done great things to put trust and honesty back into our nation, while others argue that it has failed and needs to be abolished. It is uncertain whether or not the initiative will make it to see it’s seventh birthday, with revisions from the financial choice act or if the bill will be replaced all together. Either way we

“Many people still attribute the financial crisis of 2008 to greed, Wall Street, and free-market capitalism, even though the real-cause has yet to be acknowledged, let alone curbed or removed was government intervention in markets” (www.forbes.com). This included the Federal Reserve’s disruptive manipulations of interest rates, plus massive subsidies and regulations in housing, banking, and mortgages. For years government policy promoted reckless financial practices and then made things worse by bailing out the worst miscreants. Policy priority and favoritism went to those most in need of homes they could not afford and in need of loans they could not repay. This act seems noble, but in reality it was not. Many families were destroyed and homeless

Hello Carl, thank you for the response! I do believe that the Dodd-Frank Act and its imposed regulation was a great step in the right direction to deter future financial crises. I do agree with the notion of easing the current burden on banks and mortgage lenders by easing credit terms and requirements. In late 2014, Freddie Mac and Fannie Mae did reach an agreement aimed at loosening constricted lending standards to make mortgages more affordable and easier to get for those with less than stellar credit. I read a great article in in the LA Times that touched on this subject by stating that “clearer guidelines are intended to convince lenders that they won't regret lending to higher-risk but still worthy borrowers. Under the new rules,

The economy of the United States had been growing for 40 years. Also, the banks were regulated. [1] The congress had passed the Glass-Steagall Act in 1933, which had prohibited the investment banks from investing people's saving in the stock market [1]. In 1999, congress passed the Gramm–Leach–Bliley Act, overhauling the Glass-Steagall Act, letting banks to invest in people's savings [1]. Up to 2008, what banks did was they invested almost $5 Trillion in internet stocks. Furthermore, they lent people Adjusted Rate Mortgages with almost no money down(people loaned 99.3% of the money)to let them buy houses. What this means is they gave people a house for free with low-interest rates. Investment banks offered 150 different ARMs. Adjusted Rate Mortgages having low-interest rates logically leads to

Dodd-Frank Repeal. The Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) was the most significant overhaul of the banking sector to become law since Dodd-Frank was enacted in 2010. The House Congressional leaders agreed to vote on the compromise bill that Senate Republicans negotiated with enough Democrats in exchange for a promise that a broader set of House-passed rollbacks will get a vote later this year. As a result, S.2155 contains marginal changes and exemptions from existing rules and regulations for smaller banks. It also relieves some larger bank holding companies from some of Dodd-Frank’s heightened regulations. Unfortunately, Mercatus research had little to no effect on substantial policy issues or discussions.

After all the government bail- out plans to help the mortgage industry, financial services and the overall economy, the U.S. economy is experiencing recession with no significant improvement in real estate business. So what are the significant issues that remain unresolved? I believe that we have witnessed the collapse of the housing market which has lead to disastrous outcomes. But, who is to be blamed? While accusing and pointing a finger to the giant mortgage industries, we often forget that the other four fingers are pointing back to ourselves. Are we so naive to keep blaming only to the financial and mortgage industries (sellers)? My understanding is that the sellers deal is only as good as the buyer is willing to pay the price for it. Getting carried away to live the American dreams with limited earnings is a weakness that every human being is living with. We cannot just blame the corporations for strategizing to make profits, we as consumers have to make smart choices by knowing our limitations on expenditures as well. If we are busy accusing companies for making unethical decisions, let us not make the same mistake by choosing to buy their services and products, let us question their

The impact of the (CFPB) consumer financial protection bureau would empower the consumer. This means consumers would be able to take their financial service providers to court and hold them accountable for wrong doings that resulted in financial gain for banks and other financial companies at the . When signing up for credit cards and opening bank accounts, the consumer will be able to seek justice for unfair practices and not be forced to comply with arbitration agreements that most people sign without being fully aware of the terms and conditions or even understand the stipulations of the clause. Also the individual consumer would have the right to participate in a class action law suit if deemed necessary. Credit card companies would

A beautiful single-family home sits vacant on a cul-de-sac with sign swaying creakingly in the wind. The sign is imprinted with the word “FORECLOSURE.” This scenario has become the unfortunate reality in the United States since the Great Recession of 2008. The implications of a home being foreclosed are disastrous to the economy, to the banks, to the job market, and of course to the home owner. September 15, 2008 is a date that makes most investors, market shareholders, and economists cringe. This was when investment bank Lehman Brothers Financial, failed, and American International Group (AIG), a massive financial insurance agency, pended collapse (Financial Crisis Inquiry). Global markets dropped in what was the single greatest point drop in United States history (Damon). Shareholders and investors around the world lost trillions of dollars and unemployment in the U.S tripled in six months (Damon). Markets do not turn this way overnight, and this outcome was not an accident. The economic situation seen today was the consequence of decades worth of manipulations and bribery made by elected representatives, CEOs of big banks, and Washington’s lobbyists. The financial recession was directly caused by years of deregulation, excessive selling and purchasing of collateralized debt obligations (CDOs), and the greed of the private sector banking industry.