The Dodd-Frank Act: Tony Menendez's Story

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.

For many whistleblowers, fear of persecution and retaliation has prevented them from speaking out against improper behaviors at their institutions. Because of the dangers that whistleblowers are exposed to, many companies have become proactive in promoting and protecting whistleblowing. As a case and point, we need to look no further than the banking giant, Barclays.

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

After more than seven years after the financial crisis, there is a great debate among

Prior to the 2008 economic depression, obtaining a mortgage was relatively simple for home buyers. However, many of those mortgages had provisions that made it difficult for borrowers to repay their mortgages (“Dodd-Frank,” n.d.). As a result, many homeowners lost their homes when they were unable to repay their mortgages, which led to the real estate crisis. In 2010 the Mortgage Reform and Anti-Predatory Lending Act, also known as the Dodd-Frank Act, was enacted to reform how mortgage servicers vetted borrowers and to eliminate the use of predatory loan practices (Cheeseman, 2013, p. 485). Under the Dodd-Frank Act, creditors must establish borrower’s credit history, income and expected income, debt-to-income ratio, and other factors before

Supposedly, Dodd-Frank lacks full implementation, providing President Trump an open door with which to shred the remaining aspects of the Act (Frean 2011). With portions of the Act already ineffective, the only effort Trump has to put into permanent dismantlement, is to ensure that they never go into effect. Interestingly enough, for agencies such as the SEC, FDIC, and CTFC (Commodity Futures Trading Commission) and the like, majority members are cycled out with each presidential term (Dayen 2017). The CFTC prefers a hands off approach and basically ignored the regulatory provisions of Dodd-Frank thereby proving it is not performing as it should (Fischer 2015). So hypothetically, an easy means of controlling the agencies is to control the members,

Named after the United States senator Christopher J. Dodd and the United States Representative Barney Frank, the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed in to federal law by the president Barack Obama on July 21, 2010 in an attempt to prevent the events that led to the 2008 financial crisis of occurring again. Commonly known as the Dodd-Frank, the act brought the biggest changes to regulations on financial institutions since the reforms on regulations that followed the Great Depression. The act creates regulatory agencies for financial institutions, as well as an oversight council that is in charge of assessing systemic risk. The council also has the power of restraining the growth of large financial institutions

The Dodd- Frank law on whistle-blowing bounty program is an upgrade from the Sarbanes- Oxley. The Sarbanes – Oxley whistle -blower program protected employees from getting retaliated upon by their employers when they report misconduct within the company they are employed. Dodd- Frank law took is a step further, an employee who reports financial misconduct are entitled to receive 10 percent to 30 percent of the fines and settlements if the conviction is upheld and the penalties exceed $1 million dollars (Ferrell, 112, 2013). The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in 2010 (Ferrell, pg. 110, 2013). The focal mission of the Consumer Financial Protection Bureau is to make markets for

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

While Dodd Frank was held as an act that would increase capital and liquidity buffers banks held and reign in the risky behavior of financial institutions. In doing so it has cost a heavy burden to bank in the form of compliance cost and implications about its future impact on households and the financial sector. Listed are the six key provisions of Dodd Frank, in each highlighted area the pros and cons of that key aspect that will be discussed.

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 2010, Congress passed the Dodd-Frank Act. This law requires certain companies to disclose their use of conflict minerals in their products. This proved to be difficult to enforce due to the loopholes in the laws that allow companies to be caught in legal limbo. If the company can prove that their product is conflict free, then they receive a certificate from the Securities and Exchange Commission(SEC). However, if the companies receive the rating of “Undeterminable”, then on their report to the SEC they must describe the entire process as accurately as possible. The company is not required to obtain a private sector audit, and after 2 years they are required to submit another report with no repercussions. This law is not strict enough,

As we all know in 2008 the economy took a huge turn for the worse. The economy had crashed, jobs were lost, companies went bankrupt, borrowing money was seized, and the United States was in the worst recession since the Great Depression of the 1930s. One of the results of the Great Recession of 2008 was the Dodd-Frank Act of 2010. The Dodd-Frank Act clamped down on finical institutions that had 50 billion or more dollars in assets. It created new and stricter regulations of the financial institutions to help prevent another recession. This came with its advantages and disadvantages. First, an advantage of having the restrictions set at $50 billion or more in assets is that smaller financial institutions have a little more freedom on how business is conducted. For example, Idaho Central Credit Union has $2.7 billion is assets as of September 13, 2016 and is the currently the largest Indirect Lender in Idaho, in addition, the number one mortgage lender currently in Idaho. It is tough to say if ICCU would be so successful if they had as many regulations and restrictions. Instead of focusing on growth there would be a high pressure of following regulations. On the opposite side of the spectrum the disadvantage of having the cut off at 50 billion in assets makes companies that are close to the cut off start to restrain

In 2008, the United States encountered a financial crisis that left millions of Americans unemployed and resulted in trillions of dollars lost. The financial regulatory system was the main reason for the cause of the financial crisis by allowing financial institutions to operate with little or no supervision. It also allowed for lenders to use hidden fees and fine print to take advantage of consumers (Wolin, 2011). President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in response to the crisis on July 21, 2010, the intention of this act is to prevent another major collapse of the financial institution industry and geared to protecting consumers with rules to keep borrowers from abusive lending and mortgage practices

Whistleblowing can be described as the disclosure of illegal, immoral, underhand or unlawful transactions, deals or practices of their employers or companies to people, institutions that are most likely to take action. What sets whistleblowing apart from other types of disclosures such as a tell-all is that it is made for the purpose of reporting wrongdoing in a company or organization to an agency or person that can take some actions. Whistleblowing is gaining popularity at such a fast pace, and more people are coming forward with dirty deals of their companies in the hope that something can be done about it. The reasoning behind whistleblowing is that the rights and interests of the public are hampered and interfered with by organizational abuses that go against the accepted societal norms and may breed inefficiency if something is not done about it (Weinstein, 1979).