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

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a comprehensive financial reform bill that was signed into law in 2010 by President Obama. This act is aimed at regulating the financial industry in order to prevent a future financial crisis like the one that occurred in 2008. It also provides new consumer protection measures to ensure that American consumers are better protected from predatory practices. Specifically, the act created new regulations on banks and other financial institutions, including stronger capital requirements, stress tests, risk-based minimum standards, and the Volcker Rule, which prohibits banks from engaging in certain activities. Additionally, it established the Consumer Financial Protection Bureau (CFPB) to protect consumers from financial exploitation by banks. The Dodd-Frank Wall Street Reform and Consumer Protection Act is monitored and enforced by several different federal agencies, including the Federal Reserve Board, the FDIC, the General Accountability Office, and the Securities and Exchange Commission. In Washington, the act is subject to state-level laws as well. These laws create special consumer protection provisions, such as limits on unfair and deceptive banking practices. Overall, the Dodd-Frank Wall Street Reform and Consumer Protection Act is a major step forward in the regulation of the financial industry and the protection of consumers. Its provisions strengthen the stability of the financial system, allowing it to better withstand economic downturns and preventing future predatory practices.

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

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