The Dodd-Frank Act: Financial Analysis

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The Dodd-Frank Act put a considerable burden on financial regulators whom have to work out the details in order to implement its vision. It includes a variety of points relating to the prevention of a future crisis (Kim & Muldoon 2015). Some of these major points include: (1) The creation of a new Financial Stability Oversight Council, comprising existing regulators, to be responsible for overseeing any financial institution or set of market circumstances determined to be likely to result in risk to the overall economy, (2) A reallocation of banking oversight responsibility among the Federal Reserve System, the Comptroller of the Currency, and the FDIC, requiring the Federal Reserve Board to supervise nonbank financial companies “that may…show more content…
There are thirteen states in the country that have seen a slow recovery, including New Jersey. This has led to a shrinking middle class and created undue hardship for the poorest residents (George 2016). Only about a quarter of Americans have a positive view of the U.S. economy and its prospects (Davidson 2015). According to a survey from USA Today/Wells Fargo, many Americans feel good about their financial situation. However, although financial situations have improved, Americans are still pessimistic about the future. Consumers have been very cautious as to how they spend their money, which is why consumer spending has increased, but has also failed to take off. The survey shows that 26% of Americans expect conditions to better a year from now, 23% believe they will be worse, and 27% rate the U.S. economy as good or very good (Davidson 2015). Wells Fargo Senior Economist, Mark Vitner, says that Americans do not see as much opportunity with the economy today, as they did in the past, mainly because their viewpoints are influenced by their current employment situation. The survey’s results are said to reflect a local bias, but also to being influenced to what people are drawing from the media.
Whether you are poor or rich, we have all seen the effects of the great recession. It has affected some, more than others, but we are still seeing the recovery. Although we are not certain
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From the U.S. Housing Bubble to the greed and deception of investors, the United States economy was beginning to fall during this time period. The Community Reinvestment Act was showing its effects nearly thirty years prior to the bursting bubble. Being forced to meet quotas and avoid penalties, banks were almost forced to sell mortgages to anyone, even if they could not afford them. They believed that the only way to grow was to discontinue the verification of things such as income, in order to gain more customers in the mortgage market. Fannie Mae and Freddie Mac were created to provide liquidity, stability, and affordability to the mortgage market. In reality, they just created the early steps of securitization, increasing the greed and deception of
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