What Is Dodd-Frank Wall Street Reform?

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.

Treasury securities. They insure approximately nine trillion dollars of deposits throughout the country. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits only, excluding securities, mutual funds, and the like. To protect depositors, the FDIC responds immediately when a bank fails. Institutions commonly are closed by the state regulators or the Office of the Comptroller of the Currency. The FDIC has numerous alternatives for resolving failures, but most often deposits and loans of the failed bank are sold to another institution, and the customers become customers of the assuming bank. Most of the time, the transition is seamless from the customer's point of

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.

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

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social

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

Dodd- Frank Act is named behind its drafters, Chris Dodd, a senator, and Barney Frank, a representative, who happened to be the chairmen of the Financial Services Committee and introduced the revised versions of the Bill in Senate and House of Representatives respectively. Dodd-Frank Reform is termed as the broadest and sweeping reforms on financial matters since the 1930s’ Great Depression. The Act was enacted in July 2010 following the 2008 global financial crisis (Erickson, Fucile, & Lutton, 2012). The US financial services are offered by: the credit unions and traditional commercial banks as well as savings and loan associations, which make loans to their customers and take deposits from them; and nonbank institutions such as the hedge

“As a result of this movement, the banking laws changed. Congress began to investigate in more depth of the money used to support banks. Eventually Congress changed the level of liquidity of the banks once realizing they were too low.” This movement helped congress recognized a huge flaw in banking services. Also, an act was passed by Barack Obama on July 21, 2010. This act was known as the Dodd-Frank Act. “In the fall of 2008, a financial crisis of a scale and severity not seen in generations left millions of Americans unemployed and resulted in trillions in lost wealth. Our broken financial regulatory system was a principal cause of that crisis. It allowed some irresponsible lenders to use hidden fees and fine print to take advantage of consumers.To make sure that a crisis like this never happens again, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The most far reaching Wall Street reform in history, Dodd-Frank will prevent the excessive risk-taking that led to the financial crisis. The law also provides common-sense protections for American families, creating new consumer watchdog to prevent mortgage companies and pay-day lenders from exploiting

In the wake of the 2008 financial crisis, a Democrat Congress and President Barack Obama passed the Dodd-Frank Act, which in turn unleashed a flood regulations and created the CFPB. While their intent of protecting the little guy is praiseworthy, the legislation had the opposite effect. Since its inception, the CFPB became

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

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,

The Dodd-Franck Act is one of the most comprehensive financial regulations of the last decades. Its main goal is to “solve” and prevent financial crisis in the U.S. Due to the characteristics and size of the Act, most scholars agree that the best course of action is to study and evaluate it in parts: The creation of the Consumer Financial Protection Bureau and its additional regulations.

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989, more commonly known as FIRREA, was one of the acts that had the most sweeping reforms in decades. This was in response to the fraud in the savings and loans institutions and recession of the ‘80’s. It moved supervision and regulation of the savings and loans institutions under the FDIC. FIRREA eliminated the Federal Home Loan Bank Board and established two new agencies: the Federal Housing Finance Board (FHFB) and Office of Thrift Supervision (OTS) (Important Banking Laws, 2015). It also established the Resolution Trust Corporation (RTC), which was responsible for disposing of assets of failed institutions (Important Banking Laws,

In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act is a bill that was put into place to protect Consumers, Investors, Businesses and many other business related sources from repeating another financial crisis. The main purpose of the Dodd-Frank Act is to highlight all the flaws from the previous financial crisis and put preventions into place to reframe from the loss of 8 million jobs to happen again. Throughout I will highlight important proposals within the Dodd- Frank Act to breakdown and explain the reasons behind the development. To explain more fully the basic motivation behind each of these proposals is quite simple actually, starting with Consumer Protections with Authority and Independence.

Congress has discovered that the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 that created the Consumer Financial Protection Bureau or CFPB is fatally flawed and dangerous to traditional banking interests, politicians and lenders. The Huffington Post reports that ther bureau has become everybody's favorite target for reform or abolishment, and these stakeholders include people from opposite asides of the political specturm like the American Bankers Association and banking-system critic Rep. Spencer Bachus (R-Alaska). The CFPB, which was expected to target payday and predatory lenders,