HOME
        TheInfoList






The Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd–Frank) is a United States federal law that was enacted on July 21, 2010.[1] The law overhauled financial regulation in the aftermath of the Great Recession, and it made changes affecting all federal financial regulatory agencies and almost every part of the nation's financial services industry.

Responding to widespread calls for changes to the financial regulatory system, in June 2009, President Barack Obama introduced a proposal for a "sweeping overhaul of the United States financial regulatory system, a transformation on a scale not seen since the reforms that followed the Great Depression". Legislation based on his proposal was introduced in the United States House of Representatives by Congressman Barney Frank, and in the United States Senate by Senator Chris Dodd. Most congressional support for Dodd-Frank came from members of the Democratic Party, but three Senate Republicans voted for the bill, allowing it to overcome the Senate filibuster.

Dodd-Frank reorganized the financial regulatory system, eliminating the Office of Thrift Supervision, assigning new responsibilities to existing agencies like the Federal Deposit Insurance Corporation, and creating new agencies like the Consumer Financial Protection Bureau (CFPB). The CFPB was charged with protecting consumers against abuses related to credit cards, mortgages, and other financial products. The act also created the Financial Stability Oversight Council and the Office of Financial Research to identify threats to the financial stability of the United States, and gave the Federal Reserve new powers to regulate systemically important institutions. To handle the liquidation of large companies, the act created the Orderly Liquidation Authority. One provision, the Volcker Rule, restricts banks from making certain kinds of speculative investments. The act also repealed the exemption from regulation for security-based swaps, requiring credit-default swaps and other transactions to be cleared through either exchanges or clearinghouses. Other provisions affect issues such as corporate governance, 1256 Contracts, and credit rating agencies.

Dodd-Frank is generally regarded as one of the most significant laws enacted during the presidency of Barack Obama.[2] Studies have found the Dodd–Frank Act has improved financial stability and consumer protection,[3][4] although there has been debate regarding its economic effects.[5][6] In 2017, Federal Reserve Chairwoman Janet Yellen stated that "the balance of research suggests that the core reforms we have put in place have substantially boosted resilience without unduly limiting credit availability or economic growth." Some critics have argued that the law had a negative impact on economic growth and small banks, or failed to provide adequate regulation to the financial industry. Many Republicans have called for the partial or total repeal of the law.

Title X, or the "Consumer Financial Protection Act of 2010",[168] establishes the Bureau of Consumer Financial Protection. The new Bureau regulates consumer financial products and services in compliance with federal law.[41] The Bureau is headed by a director appointed by the President, with advice and consent from the Senate, for five-year term.[41] The Bureau is subject to financial audit by the GAO, and must report to the Senate Banking Committee and the [168] establishes the Bureau of Consumer Financial Protection. The new Bureau regulates consumer financial products and services in compliance with federal law.[41] The Bureau is headed by a director appointed by the President, with advice and consent from the Senate, for five-year term.[41] The Bureau is subject to financial audit by the GAO, and must report to the Senate Banking Committee and the House Financial Services Committee bi-annually. The Financial Stability Oversight Council may issue a "stay" to the Bureau with an appealable 2/3 of the vote. The Bureau is not placed within the Fed, but instead operates independently.[169] The Fed is prohibited from interfering with matters before the Director, directing any employee of the Bureau, modifying the Bureau's functions and responsibilities or impeding an order of the Bureau.[41] The Bureau is separated into six divisions:[41]

Within the Bureau, a new Consumer Advisory Board assists the Bureau and informs it of emerging market trends.[41] This Board is appointed by the Bureau's Director, with at least six members recommended by regional Fed Presidents.[41] [41] This Board is appointed by the Bureau's Director, with at least six members recommended by regional Fed Presidents.[41] Elizabeth Warren was the first appointee of the President as an adviser to get the Bureau operating. The Consumer Financial Protection Bureau can be found on the web.

The Bureau was formally established when Dodd–Frank was enacted, on July 21, 2010. After a one-year "stand up" period, the Bureau obtained enforcement authority and began most activities on July 21, 2011.[171]

The Durbin Amendment targeting

The Bureau was formally established when Dodd–Frank was enacted, on July 21, 2010. After a one-year "stand up" period, the Bureau obtained enforcement authority and began most activities on July 21, 2011.[171]

The Durbin Amendment targeting interchange fees is also in Title X, under Subtitle G, section 1075.[172]

A new position is created on the Board of Governors, the "Vice Chairman for Supervision", to advise the Board in several areas and[173]

Additionally, the GAO is now required to perform several different audits of the Fed:[173]

Standards, plans & reports, and off-balance-sheet activities

Title XIII, or the "Pay It Back Act",[124] amends the Emergency Economic Stabilization Act of 2008 to limit the Troubled Asset Relief Program, b

Title XIII, or the "Pay It Back Act",[124] amends the Emergency Economic Stabilization Act of 2008 to limit the Troubled Asset Relief Program, by reducing the funds available by $225 billion (from $700 billion to $475 billion) and further mandating that unused funds cannot be used for any new programs.[183]

Amendments to the Housing and Economic Recovery Act of 2008 and other sections of the federal code to specify that any proceeds from the sale of securities purchased to help stabilize the financial system shall be[184]

The same conditions apply for any funds not used by the state under the Housing and Economic Recovery Act of 2008 and other sections of the federal code to specify that any proceeds from the sale of securities purchased to help stabilize the financial system shall be[184]