By William Pope
11/26/12
Dr.Boulet
History of Economic Thought
Since the financial crisis of 2008 many things have changed in the ways of how our government works, the way people run a business, and even the way people live their lives. Although some people may blame these events on former President George W. Bush or current President Barack Obama, much of the changes that have occurred have been from a single act, the Dodd-Frank Act. The Dodd-Frank Act, which was implemented after the financial crisis that occurred in 2008, is designed to keep businesses and firms honest. The Dodd-Frank Act implements changes that affect the oversight and supervision of financial institutions, provides a new resolution procedure for large financial firms, creates new government agencies responsible for implementing and enforcing compliance procedures with consumer financial laws, introduces more stringent regulatory capital requirements, effects significant changes in the regulation of over the counter derivatives, reforms the regulation of credit rating agencies, implements changes to corporate governance and executive compensation practices, incorporates the Volcker Rule, requires registration of advisers to certain private funds, and effects significant changes in the securitization market. This is just a few of the things that this Act covers. Although the legislation calls for multiple studies to be conducted and specific rule making be made, we all are somewhat acquainted with the Dodd-Frank Act. The first thing that one may need to know about this act is that numerous government agencies are responsible for regulating financial institutions. People have noted that without a governing body to oversee the various agencies we will remain vulnerable to regulatory gaps and oversight failures. The Dodd-Frank Act created the Financial Stability Oversight Council, which oversees all financial institutions. The Financial Stability Oversight