Dodd-Frank Wall Street Reform and Consumer Protection Act
Definition of 'Dodd-Frank Wall Street Reform and Consumer Protection Act'
The Dodd-Frank Act is named after its two main sponsors, Senator Christopher Dodd (D-CT) and Representative Barney Frank (D-MA). It was passed with bipartisan support, and was signed into law with the support of President Obama.
The Dodd-Frank Act is a comprehensive piece of legislation that addresses a wide range of issues related to the financial system. It includes provisions that:
* Increase regulation of financial institutions, including banks, investment banks, and insurance companies.
* Create new consumer protection regulations.
* Promote financial stability.
* Improve oversight of the financial system.
The Dodd-Frank Act is a complex law, and it has been implemented in stages over time. The full impact of the law is still being debated, but it is generally seen as a significant step forward in the regulation of the financial system.
Here are some of the key provisions of the Dodd-Frank Act:
* The law creates a new Financial Stability Oversight Council (FSOC) to oversee the financial system and identify risks to financial stability.
* The law establishes new capital requirements for banks and other financial institutions.
* The law creates new consumer protection regulations, including a new Consumer Financial Protection Bureau (CFPB).
* The law reforms the regulation of over-the-counter derivatives.
* The law creates a new Office of Credit Ratings (OCR) to oversee credit rating agencies.
The Dodd-Frank Act is a significant piece of legislation that has had a major impact on the financial system. It is still too early to say definitively what the full impact of the law will be, but it is clear that the Dodd-Frank Act is a major step forward in the regulation of the financial system.
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