Dodd-Frank Research Paper

8381 WordsAug 7, 201334 Pages
Dodd-Frank: A Guide to Financial Reform Elizabeth Ables, Stefanie Gaines, Angela Howell, Samantha Johnston, and Christina Wright This paper is submitted in partial fulfillment of the requirements for Business Ethics and Legal Environment BUS 5933.49 Texas Woman’s University School of Management H. Guy Smith, J.D. December 8, 2012 Table of Contents The Great Recession of 2008 and the Dawn of Dodd-Frank …………………………… 3 The History of Financial Reform in the United States ………………………………….. 3 Who Are the Agencies Responsible for Implementing Dodd-Frank? ………………….. 5 What is Dodd-Frank and Who Does it Affect? …………………………………………. 9 What is Wrong with Dodd-Frank? ……………………………………………………… 14 Dodd-Frank and Politics – To Reform or Not To…show more content…
The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank securities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). Financial Reform Today Dodd-Frank is the latest financial reform passed by Congress, and by far the most extensive. According to Amadeo, Dodd-Frank is “the most comprehensive reform since the Glass-Steagall Act of 1933” (2012, para.1). The goals of Dodd-Frank are to implement consumer protections, end bailouts with tax payer money, create a council to identify risks, eliminate loopholes for risky behavior, implement say on pay for executives, protect investors, and enforce strict regulations on Wall Street (House of Representatives, n.d.). Dodd-Frank lacks clarity and is lengthy, running over 1,000 pages long (New York, 2012). In many cases, Dodd-Frank does not contain explicit rules, but instead creates an outline whereby financial oversight agencies have been charged with conducting research and writing and implementing the rules. Who Are the Agencies Responsible for Implementing Dodd-Frank? Prior to the financial crisis, the overall responsibility for financial oversight was divided among several different agencies. These agencies and their “varying rules and standards led to certain entities not being regulated at all, with others subject to less oversight than their peer
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