{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

(Test 2) Dodd-Frank Legislation

(Test 2) Dodd-Frank Legislation - Summary of the Dodd-Frank...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act The Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) is a federal statute in the United States that was signed into law by President Barack Obama on July 21, 2010. The Act is a product of the financial regulatory reform agenda of the Democratically-controlled 111th United States Congress and the Obama administration.\ The law was initially proposed in the House by Barney Frank, and in the Senate Banking Committee by Chairman Chris Dodd. Due to their involvement with the bill, the conference committee that reported on June 29, 2010, voted to name the bill after the two members of Congress. The Act, which was passed as a response to the late-2000s recession, is the most sweeping change to financial regulation in the United States since the Great Depression, and represents a paradigm shift in the American financial regulatory environment affecting all Federal financial regulatory agencies and affecting almost every aspect of the nation's financial services industry. Following is a brief summary of the Legislation: 1. It creates a new and independent watchdog to ensure that American consumers have clear and accurate information when shopping for mortgages, credit cards and other financial products. In addition it will work to protect consumers from hidden fees, abusive terms, and deceptive practices. Has the authority to examine and enforce regulations for banks and credit unions with assets of over $10 billion. It also extends these powers to all mortgage related businesses (lenders, servicers, and brokers), payday lenders, and student loan lenders, as well as debt collectors and consumer reporting agencies. Creates a new Office of Financial Literacy, and a National Consumer complaint hotline. 2. Ends “Too Big to Fail”: the legislation creates a safe way to liquidate failed financial firms, and imposes tough new capital and leverage requirement that will make it undesirable to get too big.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}