Special Dodd Frank Act Wiki Explained

by Dori Tery on July 27, 2013

Dodd Frank Act Wiki 101

The Dodd Frank Act Wiki (Dodd Frank Wall Street Reform and Consumer Protection Act) is a United States federal law that places regulation of the financial industry in the hands of the government. The Dodd Frank Wall Street Reform and Consumer Protection Act were signed into federal law by President Barack Obama on 21st July 2010 in the Ronald Reagan building. Passed as a response to the late 2000’s recession, it brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression. It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation’s financial services industry.

The law was first proposed by the Obama and his Administration in June 2009, when the White House sent a series of proposed bills to 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 wiki name is proposed by members of Congress due to the involvement of both Chris Dodd and Barney frank with the bill.

Origins and proposal of Dodd Frank Act Wiki

The financial crisis and recession of 2007–2010 led to changes in the regulatory system. In June 2009, President Obama introduced a proposal for a sweeping overhaul of the United States financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression.

As the finalized bill emerged from conference, President Obama stated that the bill included 90 percent of the proposals.

Summary of Dodd Frank Act Wiki

Some laws are created like Financial Stability Oversight Council (FSOC) by united state government to protect consumer welfare and prevent another recession. Many of American banks orderly goes shut down because of the high loans they provide to their customers, without thinking of their credit scores or FICO scores. The tendency of Americans is to take loans without thinking of their current scenario and without having the proper judgement of whether they would be able to pay the loan or not. That’s why it is truly said that:”Americans are born with a mortgage, and they die with mortgage”.

The financial stability oversight council (FSOC) by the Dodd Frank Act  Wiki where able to address persistent issues, which caused a great change in the financial industry and thus prevented another recession. The banks need to be a bit more conscious especially for planning funeral plans for a swift and orderly shutdown in the series of events that a company goes through. This act made the system of the bank to be under close watch, which thus caused elimination of taxpayer funded bail outs.

dodd frank act wikiThis Dodd Frank Bill Wiki eventually led to the creation of the Consumer Financial Protection Bureau (CFPB), which caused the customer safety from unregulated banks. The drastic change that CFPB caused correct information about mortgages and credit scores to consumers via 24*7 customer support service. The best thing about Dodd Frank Act Wiki is its whistle blowing provision where a person can report to the government and get financial rewards if he knows about certain security violations. Also read our Dodd Frank Act Summary article.

 

Watch the Video – Explain Dodd Frank Act

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