The Problem Of The Dodd-Frank Act

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.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a mammoth part of financial reform legislation passed by the Obama presidential term in 2010 as a reaction to the financial crisis of 2008. The act's many provisions, implied out over thousands of pages, are scheduled to be taken over a point of several years and are intended to decrease various risks in the U.S. fiscal system. The act established a number of new government agencies tasked with supervision over various components of the act. There are so many provisions, such as financial stability, orderly liquidation authority, transfer of power to comptrollers, FDIC and Fed, Hedge funds, insurance, pay it back Act, and Etc, which contribute to better department and regulations.

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

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

Based on this little fact, I am convinced that this trend of mineral-conflict still permeate the fabric of our society. Nations are waging wars against other countries (in most cases, the strong against the weak) in order to forcefully or illegally extract their metal commodities. In many instances, civil conflicts ensue as a result of uneven distribution of these precious metals. For example, the Rwandans genocide, Congo DRC civil war, Sierra Leone’s blood diamond civil war, etc. If human life is more precious than metal commodity, are there any alternatives to put an end to mineral-fueled conflicts? Please be host and object.

By allowing banks to become “too big to fail”, the failure of one leads to massive repercussions for the entire economy. In a contrasting environment where many small institutions exist, the implosion of one bank will not have this far-reaching, catastrophic impact. In recent years, reforms have taken place that limit a company’s ability to be “too big to fail”. In the aftermath of the financial crisis of 2008, measures to revitalize the financial system included the Dodd-Frank Wall Street Reform and Consumer Protect Act of 2010, named after U.S Senator Christopher J. Dodd and U.S Representative Barney Frank. The Act aimed to increase regulation and transparency in an industry that had so clearly lacked them and minimize future risk in the

One thing all US banks have in common is that they are all financial institutions regulated by the Federal Government.

A process which helps one to dig deep about an admirable subject matter broadens one's thinking and understanding of the subject and fluency of language and terminology used in this respected field. I took part of this process of developing and understanding a subject matter, and felt very rewarding. This process started as an overwhelming work to something I enjoy experiencing.

Financial Services Chairman Barney Frank and former Chairman of the Senate Banking Committee Chris Dodd created the Dodd-Frank Wall Street Reform and Consumer Protection Act comprised of “849 pages, 16 titles, and 225 new rules across 11 agencies” (Richardson 85). It is a heavily regulated complex act created to reign in risky behavior of Wall Street. Epstein and Montecino from Political Economy Research Institute state, Dodd Frank came about to “reign in risky practices, increase the capital and liquidity buffers banks had to hold, bring derivatives under-regulation…begin to bring the largest most complex financial institutions…under scrutiny and some regulatory oversight”(1). Dodd- Frank signed into federal law

Greed and grievances are found to be two of the most crucial causes of most violent conflicts as well as the driving forces of mass rebellion. In the case of Sierra Leone, a war that went on from 1991 to 2002 killing about 50,000 people and displacing almost two thirds of the total population is a great example of a violent conflict that fits both the greed and grievance based explanation. At the time, Sierra Leon was a country based on a one party system and dominated by the APC also known as the ‘All people’s congress’. During the APC regime there was great misuse of political power for the parties personal gain. There appeared to be great decline of “total output, neglect of agriculture, increase in unemployment, deterioration and neglect of agriculture, increase in unemployment” (Naguib, 2015). Although the president at the time made major reforms that pushed for a more democratic state, that guaranteed basic human rights, he did not keep his promising allowing the APC to continue in

Imagine having to leave your home, or worse, being killed, because two people you hardly know are fighting over a gem right now. Would you like it? Events like these take place nearly every single day in countries such as Angola, the Democratic Republic of Congo, and Sierra Leone. What is the gem that they are fighting over? Diamonds. These diamonds, known to many as blood diamonds, conflict diamonds, and war diamonds are what fill the coffers of the warlords and rebel forces of the countries listed above. The money that is derived from the sale of these diamonds is linked to civil war, genocide, and terrorism. To stop the atrocious acts mentioned before, I propose that more needs to be done to stop the flow of blood diamonds in

2009, Jadhav and Barua 2012, Barua et al. 2013). Hence, the effectiveness of these uncompensated costs and hidden impacts in lessening the conflict in the long term are questionable as they do not address the underlying cause and merely transfer the risk from one spatial location to the next (Sukumar 1989, 1991).

Economic factors have been identified as one of the major causes of conflict in Africa. Slowdowns, stagnation, deterioration, and complete collapse are sources of state destabilization and can lead