The Dodd Frank Act Was Enacted

1401 Words6 Pages
Introduction 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 general objective of this policy paper is to deeply understand the latest and most influential financial reforms and the current financial environment in U.S through relatively comprehensive analysis with regard to the Dodd-Frank Act. In doing so, I move forward to provide some suggestions on improving the relevant legislature. In detail, this project comprises different parts with different themes and goals…show more content…
After Dodd-Frank Act takes effect, the impacts on the stakeholders, negatively and positively, especially the financial institutions, investors and customers, are far-reaching. Accompanying with that, efficiency and adequacy of the Dodd-Frank Act is examined. Finally, I’ll attempt to make some conscionable advices on how to move forward and overcome potential challenges on the premise of above analysis. All in all, I aim to assist in creating an illuminating understanding on American financial system and reforms through this public policy paper. History In the late 20th and early 21st century, the Anron and Worldcom scandals directly led to the birth of Sarbanes-Oxley Act in 2003, which strengthens the accounting oversight and disclosure on the corporation. However, only 4 years later, the most extensive and devastating financial tsunami since the 1930s Great Depression happened and then spread to the globe, generating extremely serious harm to the American and the global economy. Most terrible period is in the in the last quarter of 2008 and the first quarter of 2009 when American GDP decreased by 5.4 percent and 6.4 percent (at annual rates)—the worst six months for economic growth since 1958. With the advent of economy recession, jobs, wages and wealth plummeted as well. Over the five quarters from October 2008 through December 2009, it has lost $360 billion wages in total tantamount to $3,250 on average per U.S. household. Besides that,
Open Document