Pros And Cons Of Dodd-Frank Wall Street Reform

The Dodd-Frank Wall Street Reform and Consumer Protection Act is an enormous part of financial reform legislation passed by the Obama presidential term in 2010 as a response to the financial crisis of 2008. The act has many provisions and implied out over thousands of pages. It was intended to decrease various risks in the U.S. The act established a number of new government agencies to supervise over various components of the financial system. There are so many provisions, such as financial stability, orderly liquidation authority, transfer of power to comptrollers, FDIC and Fed, Hedge funds, insurance, pay it back Act, and Etc, which contribute to better department and regulations. The one of the reasons of this act is to protect borrowers and clients with rules like keeping away from abusive excessive lending and mortgage business by banks. It is one of the most
Furthermore, common sense tells us that it will cost money to operate all these new agencies and enforce all these new rules, and that money will come from taxpayers. Because the number is still in the procedure of being enforced and because those provisions that have been implemented are still comparatively new, it will probably be years before the full implications of the Dodd-Frank Act become clear. As critics think, the impact of this act, it will be hard or could be more expensive for startups to raise financial capital and creates new jobs but on the other side, this act impact would be a reduction in fraud and other wrongdoings. With having this act cause more transparency in the last few years, less risky trading and much more. Opponents think too many regulations are causing more capital spending and higher costs to maintain these standards which aren’t as much profitable as they were