The Consequences Of The Dodd-Frank Act

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.

Throughout history and in our own time, legitimate accounting methods have been utilized to fraudulently engage in manipulating activities that results in illicit gains to the perpetrators and losses to individuals and financial institutions.

Philip H. Siegel, Augusta State University, USA David P. Franz, San Francisco State University, USA John O’Shaughnessy, San Francisco State University, USA

The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank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

The Dodd-Frank Act was enacted to deal with the various problems occurred in the financial crisis. The paramount reason I choose this law is it has brought the most significant changes in the federal financial regulation since the regulatory reform that followed the Great Depression. (Damian & Lucchetti, 2010)

The Dodd-Frank Act has a market-saving impact in numerous ways, including but not limited to: Starting a financial stability oversight council which actively monitors the stability of large firms whose bankruptcy could have a major negative impact on the economy, the act also provides money to assist with dismantling financial companies that have been placed in receivership, and prevents tax dollars from being used to prop up such firms, which previously was a large waste of tax payer money. It also stops predatory mortgage firms who lend to people who can't afford it, which helped cause the 2008 financial crisis*. While many Republicans will try to convince you that Wall Street’s heavy regulation is killing small banks and reducing the big

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a mammoth part of financial reform legislation passed by the Obama presidential term in 2010 as a reaction to the financial crisis of 2008. The act's many provisions, implied out over thousands of pages, are scheduled to be taken over a point of several years and are intended to decrease various risks in the U.S. fiscal system. The act established a number of new government agencies tasked with supervision over various components of the act. There are so many provisions, such as financial stability, orderly liquidation authority, transfer of power to comptrollers, FDIC and Fed, Hedge funds, insurance, pay it back Act, and Etc, which contribute to better department and regulations.

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?

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.

From my assessment the possibility for you to consent to a state government as well as a national government is futile. Although the state and national have separate powers, they are capable of challenging each other. Texas is constantly disputing the federal government rules as a consequence; one would have to pick a side. To avoid a financial crisis, in 2010, the Dodd-Frank Act was passed, which meant they could liquidate from large financial institutions in Texas. A lawsuit was filed by Texas Attorney General Greg Abbott due to it, allowing unelected officials’ power over Texas funds without approval. Each having convincing reasoning behind their decisions, one could not comply with both sides considering you are either persuaded by the

In short form, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act mandates disclosure of conflict minerals originated in the Democratic Republic of the Congo (DRC) to the Securities Exchange Commission (SEC) and due diligence in sourcing those conflict minerals. Conflict minerals include gold, tantalum, tin, and tungsten, which are used in many popular consumer products used and manufactured throughout the globe. The use of conflict minerals is a growing concern for consumers due to the fact that in the DRC where these minerals can be mined cheaply, an alarmingly high amount of human rights violations are committed by Congolese warlords and

While the term “conflict mineral” can be used to refer to any mineral resource being exploited by a belligerent faction in order to perpetuate hostilities, it is most commonly associated with columbite-tantalite, cassiterite, wolframite, and gold ore, collectively known as 3TG minerals.i These ores, used to produce tantalum, tin, tungsten and gold, respectively, comprise a multi-billion dollar market fueled by the growing demand for electronics and other products related to the technology industry. The 3TG group is essentially vital in every modern electronic device: phones, computers, pacemakers, light bulbs, batteries, generators, planes, cars, everything.ii The issue with this industry is that these minerals are often harvested by a variety of military factions concentrated in Central Africa, then shipped across the porous border undeclared to Tanzania, Uganda, Burundi, Zambia, Zimbabwe, or Rwanda, smuggled to Africa’s eastern coast, and finally shipped to smelting factories in Southeast Asia and the Indian sub-continent.iii Once the minerals reach the smelting plant they are melted down with other shipments from around the world and any hope of identifying whether or not they were used to fund the growing number of human rights violations occurring in the Democratic Republic of the Congo and throughout Central Africa dissolves. As though this supply chain was not already complex and spanning over a myriad of legal jurisdictions each with their own issues, it is estimated