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The Dodd-Frank Act

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The Dodd-Frank Act
This topic of discussion focuses on the Dodd-Frank Act and how it came into existence? Those who were affected by the law, to include the Acts forced regulations on all U.S. financial institutions, private hedge funds, government controlling, compliances, and its protection. The Dodd-Frank Wall Street Reform and Consumer Protection Act, now called The Dodd-Frank Act is a U.S. federal mandated law, one in which was created by the Obama administration and signed into federal law on July 21, 2010. The Act was implemented partly due to the financial crisis of 2008. According to USA government “The Act was created to place regulations on the financial industry that government controls.” The agency created was the Financial Stability Oversight Council, …show more content…
This provision was brought in existence under the suspicion that trading activities played a crucial role to the financial crisis in 2008. The Volcker Rule provision backed by the Senate imposed a prohibition on most proprietary trading by U.S. banks and their affiliates, offering limited exceptions. This also restricted other institutions from owing, investing and/or sponsoring in private equity and hedge funds. The House bill allowed the ban on proprietary trading that posed a systemic risk, in preventing the risk of collapse of an entire financial system or its market, differing from risk associated with any (one) individual entity, a group, or a component of a …show more content…
Without this law enacted by the Obama administration, it is my belief, American and its economy would still be in greater ruins, causing further damage and putting our country at a greater risk for terrorism, to having Marshall law imposed. Because the Republican party now in charge of the House, the Senate, and Congress, makes it a much easier task in attempting to accomplishing this. What stands in between the two are votes, in which the Trump administration is wanting to repeal the rule in the law by changing the House votes to the majority, rather than 60 votes needed. Although the Trump administration cannot completely rid of the Dodd-Frank Act reform to its entirety, the Act is still vulnerable to certain changes and/or modifications to take

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