Dodd Frank Act Summary
To put the regulation on the financial industry, by placing them in the hands of the government, Dodd Frank Act Summary (Dodd Frank Wall Street Reform and Consumer Protection Act) came into the existence. The Dodd Frank Act Summary and Consumer Protection Act were given the official signal for coming into existence by president Barack Obama on 21st July 2010. It was a bit late as compared to the recession of 2000 but it brought some of the most drastic changes in the financial regulation across the US, it was followed by the Great Depression. This act cause changes across the America’s financial regulatory environment that affected all the financial regulatory agencies in the America.
This law first came into the limelight with president Obama and his administration on June 2009, when the white house sent a series of proposed bills to the congress. A version of the legislation was introduced in the House on July 2009. On 2nd December 2009, revised versions were introduced in the House of Representatives by Financial Services Committee Chairman Barney Frank and in the Senate Banking Committee by Chairman Chris Dodd. The Dodd Frank Act Summary name is proposed by members of Congress due to the involvement of both Chris Dodd and Barney frank with the bill. The Act is categorized into sixteen titles and, by one law firm’s count, it requires that regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports.
The Dodd Frank Summary Provisions
The Act consists of 16 Titles -
Title 1: Financial Stability.
Title 2: Orderly Liquidation Authority.
Title 3: Transfer of Powers to the Comptroller of the Currency, the Corporation, and the Board of Governors.
Title 4: Regulation of Advisers to Hedge Funds and Others.
Title 5: Insurance.
Title 6: Improvements to the Regulation of Bank and Savings Association Holding Companies and Depository Institutions.
Title 7: Wall Street Transparency and Accountability.
Title 8: Payment, Clearing, and Settlement Supervision.
Title 9: Investor Protections and Improvements to the Regulation of Securities.
Title 10: Bureau of Consumer Financial Protection.
Title 11: Federal Reserve System Provisions.
Title 12: Improving Access to Mainstream Financial Institutions.
Title 13: Pay It Back Act.
Title 14: Mortgage Reform And Anti-Predatory Lending Act.
Title 15 – Miscellaneous Provisions.
Title 16: Section 1256 Contracts.
Pros of the Dodd Frank Act Summary
It is usual that after every disturbances anything new comes out in order to fix them as after the financial crisis of 1980, economic reforms were carried out in order to fix continuously going down countries economy. The same thing is with Dodd Frank Act Summary, it was proposed in order to repair the present economy of US. It is believed that this act has and will reform countries economy by significantly expanding the regulatory burden on financial businesses and community banks, that are indeed in an alarming state of trouble.
Cons of the Dodd Frank Act Summary
It is believed that today the bureaucracy has increased so much that this act might not prove to be sufficient for it. The regulated mandated proposed under this act is not sufficient to stop the rising of another economic crisis.
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