The Dodd-Frank Act Analysis

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

The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank securities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 causes that led to the 2008 crisis. They view Dodd-Frank as a comprehensive and powerful

The great recession of the year 2007-2009 had a substantial adverse impact on the US Economy and the world. Charles Ferguson documentary narrates how politicians, bankers, and economist conspired to create a crisis that caused high unemployment, increased the United States global debt and contributed to the loss of investments and savings. He describes how banks resisted regulation in the early 1990's by CFTC and how successive regimes led to the crisis by enacting laws that supported the process.

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 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

In this essay, I will briefly explain what happened during the financial crisis of 2007-09, and also discuss the contribution of the government to the financial crisis.

One of the primary factors that can be attributed as to have led the recent financial crisis is the financial deregulation allowing financial institutions a lot of freedom in the way they operated. The manifestation of this was seen in the form of:

What caused the financial crisis to happen? The origin of the crisis, the film argues, can be traced back to the 1980s, when the process of deregulation was eagerly implemented under the Reagan Era. Prior to the emergence of Reaganomics, the financial industry was tightly regulated following the Great Depression. Most of the banks were local and were prohibited from speculating customers’ deposits (brought by the Glass-Steagall Act), while the investment banks were modest and private. However, everything changed after 1980, when Ronald Reagan became president and the U.S economy entered a thirty-year phase of deregulation. Financial institutions, which included commercial and investment banks then embarked on the process of maximizing profit by making risky investments with the depositors’ money. By the end of the decade, saving and loans companies went bankrupt, causing tax payers to lose more than one hundred billion dollars. However, the government did not implement any reform and deregulation continued to take place under the Clinton

The Dodd-Frank Act took US corporations by storm upon its implementation in 2010. The act asked companies to have a non-binding periodic “say on pay” vote for executive compensation, non-binding vote on frequency of “say on pay” votes, and a non-binding vote on golden parachutes. It also changed the way board of directors handled executive compensation from that period forward. The Dodd-Frank Act requires transparency on the proxy statements and higher accounting accountability to a corporation’s shareholders.

All of which will open your eyes to the local and global economies surrounding you. I do not want to take much of your time today but I do want to be thoroughly clear on why an understanding of the 2008 financial crisis is of importance to people your age. I am sure all of you have taken the required American Government class here but the political economy is not really addressed in that courses curriculum. Nonetheless, I plan on sharing with you a decent crash course about the “so what” factor of the crisis. What I want you to take away from my lecture is what happened that led up to the crisis, what occurred during the crisis, and how and why the effects are important.

To understand why the crisis occurred, it is useful to understand the chain of events that contributed to it and the role each played. This chain transformed the slightly stodgy, conservative banks of George Bailey 's day to the high-stakes world of Wall Street, where large fortunes could be made with financial innovation.