The Effectiveness of Dodd-Frank Act
The Effectiveness of the Dodd-Frank Legislation
MBA 6400
Abstract
The Dodd-Frank Legislation also known as the Dodd-Frank Wall Street reform and consumer protection act or the Dodd-Frank Act. The Dodd-Frank Act was introduced in the House of Representatives by Financial Services Committee Chairman Barney Frank, and by the Senate Banking Committee former Chairman Chris Dodd and there for named after the two men. The Dodd-Frank represents the most comprehensive financial regulatory reform measures taken since the Great Depression; in simplest terms the Dodd-Frank Act is a law that places major regulations on the financial industry. Dodd-Frank grew out of the Great Recession with the intention of preventing another collapse of major financial institutions in the U.S. The Dodd-Frank also enforces the consumer protect act which is put in place to protect barrowers from abusive barrowing and puts regulations on banks that practice these bad habits.
Why did the Dodd-Frank Act come about? In 2008 the economy suffered a great recession and Dodd-Frank was suppose to be the answer, the tool to fix the financial problems in the U.S. if you will. Dodd-Frank put financial regulations that were said would turn the recession around and help prevent a recurrence on financial institutions. There are said to be many reasons why the economy started to plummet some say the housing market was the reason for the downward spiral of the economy and others say the banking system had a huge hand in the recession as well along with credit reporting agencies that falsely reported scores. There are many contributing factors that could have been the reason for the financial downturn of the U.S. and the Dodd-Frank Act is supposed to be the answer for regulating banks and implementing consumer protection. In
MBA 6400
Abstract
The Dodd-Frank Legislation also known as the Dodd-Frank Wall Street reform and consumer protection act or the Dodd-Frank Act. The Dodd-Frank Act was introduced in the House of Representatives by Financial Services Committee Chairman Barney Frank, and by the Senate Banking Committee former Chairman Chris Dodd and there for named after the two men. The Dodd-Frank represents the most comprehensive financial regulatory reform measures taken since the Great Depression; in simplest terms the Dodd-Frank Act is a law that places major regulations on the financial industry. Dodd-Frank grew out of the Great Recession with the intention of preventing another collapse of major financial institutions in the U.S. The Dodd-Frank also enforces the consumer protect act which is put in place to protect barrowers from abusive barrowing and puts regulations on banks that practice these bad habits.
Why did the Dodd-Frank Act come about? In 2008 the economy suffered a great recession and Dodd-Frank was suppose to be the answer, the tool to fix the financial problems in the U.S. if you will. Dodd-Frank put financial regulations that were said would turn the recession around and help prevent a recurrence on financial institutions. There are said to be many reasons why the economy started to plummet some say the housing market was the reason for the downward spiral of the economy and others say the banking system had a huge hand in the recession as well along with credit reporting agencies that falsely reported scores. There are many contributing factors that could have been the reason for the financial downturn of the U.S. and the Dodd-Frank Act is supposed to be the answer for regulating banks and implementing consumer protection. In