What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal law passed in 2010 to bring stability to the American banking system. It was passed in response to the financial crisis of 2008, when banks throughout the nation faced bankruptcy due to their risky investments. The Dodd-Frank Act provides stricter regulations for banks and financial institutions, to ensure that the same problems do not happen again. The Act created new laws such as the Consumer Financial Protection Bureau, which helps regulate consumer banking products and services, and prevent banks from taking advantage of consumers. It also increased capital requirements for banks, meaning that banks must hold a large minimal amount of assets and capital reserves in order to have room to fail without causing systemic risk to the economy. Additionally, banks must separate any risky trading activities carried out with their own funds from those done with customer funds, protecting consumers from the risk of investments. The Dodd-Frank Act also created a resolution process for large banks, and created the Financial Stability Oversight Council, which is a body of regulators responsible for monitoring the global financial system. In Georgia, the Act is implemented and enforced by its banking regulator, the Department of Banking and Finance. The Act provides the department with the authority to enforce the rules and regulations established by the Dodd-Frank Act.

Related FAQs

What is the Real Estate Settlement Procedures Act?
What is the difference between a bank and a credit union?
What is the National Bank Act?
What is the Bank Holding Company Supervision Act?
What is the Monetary Control Act?
What is the Fair Debt Collection Practices Act?
What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?
What are the federal regulations for interest rates?
What is the Community Reinvestment Act?
What is the Federal Trade Commission Act?

What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Related FAQs

Related Blog Posts