The Dodd-Frank Law

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.

This memorandum discusses a brief history of Pat, his wrongdoings and related action, and the response by the related law enforcement agencies.

The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank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

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,

In 2008, when the financial crisis occurred, millions of Americans were left without jobs and trillions of dollars of wealth was lost wealth. To make sure the Great Recession would not happen again, President Barrack Obama put into effect the Dodd- Frank Act. With the help of this law, banks will not be able to take irresponsible risks that had negative effects on the American people. Furthermore, with the Volcker Rule embedded into the act, it will ensure that banks are no longer allowed to own, invest, or sponsor hedge funds, private equity funds, or proprietary trading operations for their own profit, unrelated to serving their

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

On July 21, 2010, in Washington D.C., President Barack Obama signed into federal law the Dodd Frank Wall Street Reform and Consumer Protection Act, better known as the Dodd-Frank Act. The much criticized law, was passed as a response to financial effects of the financial crisis of 2007-2010 and presented changes to the country’s regulatory environment directly affecting all federal regulatory agencies and the financial services industry. The controversial law.

The government regulation of the financial industry by the Dodd-Frank Act was the most compelling topic of this class. A financial regulatory process was created which limits risk through the enforcement of transparency and accountability. The main objective of the Dodd-Frank Act was to provide regulation to banks that was more stringent. The FSOC was created as a result of the Dodd-Frank Act. The two main objectives of the FSCO was to stop the occurrence of another recession and to resolve persistent issues. The elimination of bailouts funded by taxpayers was another important element of this act. The CFPB also known as the Consumer Financial Protection Bureau was created as a result of the act. The consolidation of consumer protection responsibilities

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?

This memo is to address the changes and consequences brought forth by the implementation of the Sarbanes – Oxley Act. The Sarbanes – Oxley Act was signed into law in efforts to eradicate company misconduct and protect public confidence by regulating management, accountants and legal counsel that represent the company (Noorishad, 2005). When passing the Sarbanes – Oxley Act, Congress also planned to protect whistleblowers because it is those who work in the organizations every day that see first-hand the indiscretions that frequently end in substantial corporate fraud (Watnick, 2007).

Allowing or denying traditional banks to participate in proprietary trading is a controversial subject depending on the trading approaches these institutions carry out. Obviously, participating banks intent is usually the maximum profit to increase their capital, whereas non-participants financial institutions may choose to just earn commissions from their clients’ transactions. Indeed, many traditional banks such as Lehman Brothers, in the past, have initiated risky investment strategies with high returns due to the lack of federal regulations at the time. However, all lessons learned from previous painful experiences seemed forgotten when the market recovery started. Therefore, the Volker rule, which is part of the Dodd-Frank reform on Wall