The 2008 Financial Crisis: The Pursuit Of Wealth And Social Justice

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

Andrew Carnegie (1835-1919) is a prime example of the phrase, from rags to riches. During his early and teenage years, Carnegie went through poverty. After coming up with crafty investments and going through various jobs, he rose to great prosperity. Because he has experienced poverty and knows that it is a well-known problem, “Carnegie sought to use philanthropy to provide opportunities for individuals to help themselves.” Unlike Carnegie, William Graham Sumner (1840-1910), an influential professor at Yale University, believed that those who were rich deserve to be rich and those who were poor deserved to be poor. He was in favor of economic inequality and believed that helping those who are less fortunate would bring down the society. This paper examines the differences between Andrew Carnegie and William Graham Sumner’s point of view on the issue of rich and poor and whether the two classes should coexist or remain unequal.

This paper provides insight, reasoning on the wealth disparity in the United States. After all, the social movements that have advocated over the years for equality. The wealth gap remains the same. It continues to be intertwined with politics and racism. Corporation increases the wealth disparity with their political agenda in mind. In the article, "Race, Homeownership, and wealth" by Shapiro Thomas defines wealth and income. Wealth defined as " the total value of a family’s financial resources minus all debts” (Shapiro, 2014); Income “represent the following resources earned in a particular time” (Shapiro, 2014). The two definitions have two very different meanings, but there often misused. Wealth is vague and can refer to many aspects of a person and families "total value" white income is only a particular value. Shapiro argues how “Income and wealth are often confused both in the public mind and in the social science literature” (Shapiro, 2014) Wealth and income carry an important purpose because it represents how society views a person who has wealth. An individual who obtains a significant amount of "money" it is believed because they earned a substantial amount of income. The reality is people who have wealth inherited because of their family. The majority of the one percenters are born into their wealth instead of working for it. The confusion of wealth and income creates a system that does not question individuals on the top of the social pyramid. The society

In 2008, the housing market crashed and America fell into a recession. Many Americans lost their homes. Many investors lost large sums of money, and overall the economic recession hurt America as a whole. Today, we see that the stock market is more regulated than it was in 1929 with the Great Depression and 2008 with the Great Recession, but it is still not regulated as much as it previously was. In 1999, portions of the Banking Act of 1933, more commonly known as the the Glass-Stegall Act, were repealed. The repeal of the Glass-Stegall Act in 1999 sparked the Housing Crisis of 2005 and ultimately led to the Great Recession that America experienced in the 2000’s.

The Consumer Financial Protection Bureau was created in 2010 as a response to the financial crisis of 2008. The government agency was established by the Dodd-Frank Act which President Barack Obama passed as a means of controlling and preventing excessive risk-taking ("Wall Street Reform: The Dodd-Frank Act"). The financial crisis occurred in part because of the limited regulation of financial institutions and the wave of irresponsible mortgage lending (The Economist). Subprime borrowers with poor credit histories and insufficient funds for repaying the loans were allowed to borrow money which they could not pay back, thus in turn initiating a nationwide housing market crash (The Economist). Many of these borrowers were granted these loans because of the poor judgement of banks and financial institutions, thus the government needed to create an institution which would protect consumers against unfair and deceptive practices. The mission of the Consumer Financial Protection Bureau is just that-to protect consumers in the financial marketplace by enforcing federal consumer financial laws (CFPB, 2016). In order to achieve this, the bureau monitors the financial market for potential risks to consumers and supervises companies in order to uncover institutions practicing abusive and fraudulent acts. Developing laws to create a fair market place is a top priority of the bureau, as it works to enforce these rules and regulations and make them more effective. The agency also conducts

Dodd- Frank Act is named behind its drafters, Chris Dodd, a senator, and Barney Frank, a representative, who happened to be the chairmen of the Financial Services Committee and introduced the revised versions of the Bill in Senate and House of Representatives respectively. Dodd-Frank Reform is termed as the broadest and sweeping reforms on financial matters since the 1930s’ Great Depression. The Act was enacted in July 2010 following the 2008 global financial crisis (Erickson, Fucile, & Lutton, 2012). The US financial services are offered by: the credit unions and traditional commercial banks as well as savings and loan associations, which make loans to their customers and take deposits from them; and nonbank institutions such as the hedge

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by the Obama administration in July 2010 as a response to the financial crisis of 2008. Named after sponsors U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank, the act's numerous provisions, spelled out over roughly 2,300 pages, are being implemented over a period of several years and are intended to decrease various risks in the U.S. financial system. The law was initially proposed by the Obama administration in June 2009, when the White House sent a series of proposed bills to Congress. A version of the legislation was introduced

Passed under the Obama Administration in 2010, the Dodd Frank Wall Street Reform and Consumer Protection Act was designed in response to the Subprime Mortgage Crisis of 2008 which was caused in part by a gradual easing of financial regulations over the past several decades. The goal of the legislation is “to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes” as stated by the bill’s sponsors (FEC). The Act fundamentally changes the structure of financial regulatory procedures by creating, dismantling and consolidating certain regulatory agencies in order to streamline- and by some claims simplify- regulation of the banking industry. This piece of legislation has been the recipient of harsh criticism from both sides of the political spectrum for ideologically opposite reasons. Some critics claim that measures described in the bill cause economic stagnation as undue regulatory burdens are placed on financial institutions. Still others cite the bill’s shortfalls as evidence that it does not go far enough to prevent another economic collapse such as the one the nation faced in 2008 along with being highly bureaucratic.

“As a result of this movement, the banking laws changed. Congress began to investigate in more depth of the money used to support banks. Eventually Congress changed the level of liquidity of the banks once realizing they were too low.” This movement helped congress recognized a huge flaw in banking services. Also, an act was passed by Barack Obama on July 21, 2010. This act was known as the Dodd-Frank Act. “In the fall of 2008, a financial crisis of a scale and severity not seen in generations left millions of Americans unemployed and resulted in trillions in lost wealth. Our broken financial regulatory system was a principal cause of that crisis. It allowed some irresponsible lenders to use hidden fees and fine print to take advantage of consumers.To make sure that a crisis like this never happens again, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The most far reaching Wall Street reform in history, Dodd-Frank will prevent the excessive risk-taking that led to the financial crisis. The law also provides common-sense protections for American families, creating new consumer watchdog to prevent mortgage companies and pay-day lenders from exploiting

The Dodd-Frank Frank Wall Street Reform and Consumer Protection Act became Federal Law on July 21, 2010, instituting major financial regulatory reforms designed to improve the financial stability of the United States. It is a legislative response to the financial system trauma resulting from the “Great Recession” and a further regulation of the Financial Institution activities that led in part to the Great Recession. The Act, which was named after two key lawmakers involved in the congressional passing of the law, Congressman Barney Frank, House of Representatives Financial Services Committee Chairman, and Senator Chris Todd, former Senate Banking Committee Chairman, affects nearly all aspects of the oversight and supervision of the

Obama used his legislative power after the he fall of 2008 when a financial crisis of a scale and severity not seen in generations left millions of Americans unemployed and resulted in trillions in lost wealth. To make sure that the economic crisis of 2008 did not happen again, Obama attempted to develop a policy that would hold Wall Street accountable and protect American families from unfair, abusive financial practices. President Obama signed a policy using his legislative power, known as the Dodd-Frank Wall Street Reform and Consumer Protect Act. The Dodd-Frank Wall Street Reform and Consumer Protect Act was signed to prevent the excessive risk-taking that can led to the financial crisis. The law also provides common-sense protections for American families,

After a little more research, I hit a wall, the Dodd-Frank act was very specific, I was unable to find information in order to fully understand and write a research paper. After a little talk with my teacher, he advised me to look more broader, and get more info on the financial crisis itself, and gave me some clues on where to start. Than, after looking into the financial crisis as a whole and grasping the general concept, I was intrigued by the different regulations set by the US Government in response to the financial

This essay will examine the human race's abandonment of the Lord's will and determine how Everyman presents the idea of material wealth. Sex and Material Wealth Sex and money are two things that go hand in hand. Once one acquires the other the missing piece is not too far behind. This quote is a perfect example of Everyman's view of wealth, "... His mind is on fleshly lust and his treasure, And great pain it shall cause him to endure Before the Lord Heaven King..."

In the past hundred years, the United States has dealt with and overcome many difficult situations. Many believe that those specific situations revolved around wars or terrorist, but the sad part is that, many of those difficult situations were cause by the people who are in charge of our country. The culprits behind these problems are generally greedy people who have access to higher power or are in control. Examples of those people are individuals in congress, the white house and many people on Wall Street. A great example of a difficult and unfair situation is how Wall Street killed this hopeful financial reform. A few years ago, Obama signed the Dodd-Frank Wall Street Act and Consumer Protection Act. This Act was created so that the bad

It was introduced on March 15, 2010 and approved by the House on June 30, with President Obama signing this Act into law on July 21 2010 (Dodd-Frank Wall Street Reform Act, 2015). This Act regulates credit cards, loans and mortgages, as well as to make hedge funds trades public information. In addition, this Act watches over agencies that are involved with consumer credit ratings and supervises insurance companies in addition to reforming the Federal Reserve. One aspect of this bill would prevent the Fed from making an emergency loan to a single entity, like Bear Stearns or AIG, without Treasury Department approval (Dodd-Frank Wall Street Reform Act, 2015). This act was supported by Sen. Scott Brown of Massachusetts, Sen. Susan Collins and fellow Maine Sen. Olympia Snowe (Patten, 2010). In addition, there were other government officials and managers of established financial institutions who supported this bill. However, there are always those who are opposed to the Dodd – Frank bill including some Republican and Democratic leaders and several corporate CEOs and entrepreneurs in the financial market who value freedom were opposed to these limitations. The reasons they were against this bill was that they thought the bill will ultimately fail to prevent another collapse, as well as they feel that this bill will essentially lessen the readiness of some banks to