Dodd Frank Act Case Study
The Dodd-Frank Act: a cheat sheet
Morrison & Foerster
Morrison 1 Foerster
THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT, OR DODD-FRANK ACT, REPRESENTS THE MOST COMPREHENSIVE FINANCIAL REGULATORY REFORM MEASURES TAKEN SINCE THE GREAT DEPRESSION.
Morrison 2 Foerster
The Dodd-Frank Act implements changes that, among other things, affect the oversight and supervision of financial institutions, provide for a new resolution procedure for large financial companies, create a new agency responsible for implementing and enforcing compliance with consumer financial laws, introduce more stringent regulatory capital requirements, effect significant changes in the regulation of over the counter derivatives, reform the regulation of …show more content…
Commentators have noted that without a governing body to oversee the various agencies, we remain vulnerable to regulatory gaps and oversight failures. The Dodd-Frank Act creates the Financial Stability Oversight Council (“Council”) to oversee financial …show more content…
Liability − Eliminates the exemption provided by Rule 436(g) under the 33 Act from the consent filing requirement for registration statements and potentially subjects CRAs to liability under Section 11 of the 33 Act − Duty to report violations of law to appropriate authorities − Enforcement and penalty provisions of the 34 Act apply to CRA statements to same extent as to registered public accounting firms or securities analysts − Modification to “state of mind” requirement for private securities fraud actions against CRAs for money damages Required Disclosures − Qualitative and quantitative methodologies and assumptions used − Historical rating performance data required over multiple years, including for ratings that were withdrawn − SEC to issue rules requiring CRAs to disclose information on initial ratings and subsequent changes; disclosures to be comparable across
Morrison & Foerster
Morrison 1 Foerster
THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT, OR DODD-FRANK ACT, REPRESENTS THE MOST COMPREHENSIVE FINANCIAL REGULATORY REFORM MEASURES TAKEN SINCE THE GREAT DEPRESSION.
Morrison 2 Foerster
The Dodd-Frank Act implements changes that, among other things, affect the oversight and supervision of financial institutions, provide for a new resolution procedure for large financial companies, create a new agency responsible for implementing and enforcing compliance with consumer financial laws, introduce more stringent regulatory capital requirements, effect significant changes in the regulation of over the counter derivatives, reform the regulation of …show more content…
Commentators have noted that without a governing body to oversee the various agencies, we remain vulnerable to regulatory gaps and oversight failures. The Dodd-Frank Act creates the Financial Stability Oversight Council (“Council”) to oversee financial …show more content…
Liability − Eliminates the exemption provided by Rule 436(g) under the 33 Act from the consent filing requirement for registration statements and potentially subjects CRAs to liability under Section 11 of the 33 Act − Duty to report violations of law to appropriate authorities − Enforcement and penalty provisions of the 34 Act apply to CRA statements to same extent as to registered public accounting firms or securities analysts − Modification to “state of mind” requirement for private securities fraud actions against CRAs for money damages Required Disclosures − Qualitative and quantitative methodologies and assumptions used − Historical rating performance data required over multiple years, including for ratings that were withdrawn − SEC to issue rules requiring CRAs to disclose information on initial ratings and subsequent changes; disclosures to be comparable across