The Dodd-Frank Act is a financial reform law meant to avert another economic catastrophe. The bill is named after the politicians who introduced it, Senator Chris Dodd and Congressman Barney Frank.Continue Reading
The Dodd-Frank Act is also known as the Dodd-Frank Wall Street Reform Act, and it was signed into law in 2010 by President Barack Obama. The law also regulates the derivatives market, which was responsible for the economic downfall of 2008. Derivatives like credit default swaps fall under the jurisdiction of the Securities and Exchange Commission, and derivatives must be traded in public view for proper oversight.
One aspect of the bill is the creation of the Consumer Financial Protection Bureau, which monitors payday loans, credit cards, debit cards and credit reporting agencies. The bureau also oversees fees associated with such transactions as mortgages and loans.
Another agency is the Financial Stability Oversight Council, which regulates hedge funds and prevents a company from becoming so large that its downfall could affect the entire economy. If a company gets too large, the agency recommends that the Federal Reserve intervene and regulate the firm.
The bill also includes the Volcker Rule, which restricts banks from using their own monetary resources to gain profit through hedge funds. This is meant to protect the money of depositors, because banks use those funds to amass more profit on the market.Learn more about Investing
The Dodd-Frank Wall Street Reform and Consumer Protection Act is the Obama Administration's legislative response to the financial crisis that hit the American economy in 2008. The purpose is to decrease a number of risks within the U.S. financial system through the establishment of several agencies, notes Investopedia.Full Answer >
The Dodd-Frank Certification is a form used to verify that a homeowner has not been convicted of certain mortgage- or real estate-related felonies in the past 10 years, according to Wells Fargo. Homeowners typically fill out the form as part of a federal loan modification program.Full Answer >
The Dodd-Frank Wall Street Reform and Consumer Protection Act aims to reform the regulation of swaps. Lack of regulation in this area led to the financial crisis of 2008, which made clear the need for reform, according to the U.S. Commodity Futures Trading Commission.Full Answer >
The Dodd-Frank bill is a 2010 regulatory act meant to reform the financial system and protect consumer security by improving transparency and accountability as well as ending bailouts, according to the American Bar Association. President Barack Obama signed the Dodd-Frank bill into law in 2010, making it the biggest financial overhaul since the Great Depression.Full Answer >