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Unformatted text preview: Dodd-Frank 2011 Update
In October 2011, Fed President Ben Bernanke
stated that one of the most important legacies
of the financial crisis would be the recognition by central banks of their dual responsibility (restoration of financial stability policy and
co-equal status with monetary policy in pursuit
60 of macroeconomic objectives). One of the cornerstones of this new “financial stability” was the
Dodd-Frank Act, which created the Consumer
Financial Protection Bureau. By the time of this
writing in November 2011, only a small portion of
the law had been implemented, with a significant
portion yet to be written. A summary of some of
the recent provisions and changes in 2011 include:
• Systemic Risk: In October, the Federal Reserve
announced it had finished its “Living Will”
proposal for banks and systemically important
financial institutions (“nonbanks”) given its
resolution authority granted by Dodd-Frank.
This should provide investors and depositors
with greater confidence i...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery