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Table of Contents
- 1 What Is the Dodd-Frank Act? In response to the financial crisis known as the “Great Recession,” President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. This complex, but important, piece of legislation created programs and put regulations on the financial industry in order to protect consumers from being taken advantage of by lenders. It also created more channels for consumers to report illegal or predatory behavior by financial institutions, and see actual enforcement of federal law. The Great Recession, lasting roughly from 2007 well into 2009, showed us that a lack of restrictions on Wall Street allowed financial institutions to impose hidden fees and approve loans for unqualified borrowers. With investors stretching their funds and exhausting financial reserves, the resulting recession left millions of Americans unemployed and sparked worldwide economic decline. In 2009, the federal government stepped in and proposed legislation for financial reform. The Dodd-Frank Act was formed and signed into law in 2010 and was named after its sponsors U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank. It is a dense and complex bill that includes 16 major areas of reform as well as creating several new agencies to oversee the changes and implement regulations. Next, we’ll discuss the regulations found in the Dodd-Frank Act. Summary of Dodd-Frank Regulations
- 2 Dodd-Frank Repeal and Reform
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