autumn 2008, the United States sliding into a recession that affected many other countries in the world. This led to large amounts of taxpayers’ money given to companies that bailouts and the failed, people began to call for reform. This came in the form of the Dodd-Frank Wall Street Reform and Consumer Protection Act, adopted in July 2010.
The Dodd-Frank Act was constructed by Representative Barney Frank and Senator Chris Dodd in order to increase transparency and financial responsible banks and companies. There are many provisions of the Act, which serve to protect American taxpayers, as bailouts increase monitoring, and end the “too big to fail” attitude to large companies. To further these goals, the Dodd-Frank Act provisions, such as:
- Creating Financial OVERSIGHT Council and the Office of Financial Research to monitor Federal Reserve share and keep an eye on the economy
- Manage liquidation of financial institutions
- streamlining banking regulation, which includes abolishing the Office of Thrift Supervision
- Enhanced reporting requirements for investment advisers, and change the definition of accredited investors
- establishing the Federal Insurance Office to supervise insurance companies and monitor treatment of consumers
- Limiting proprietary trading for banks
- Regulation and control derivatives and “security-based swap”
- Allow Federal Reserve to monitor payments, clearing and settlement of financial market utilities
- protect investors by realigning the Securities and Exchange Commission
- Organization Bureau of Consumer Financial Protection
- Change in the New York Federal Reserve President Presidential decree
- encouraged people with low incomes to invest, get loans, open bank accounts, etc.
- eliminating bailouts from taxpayers’ money
- Regulation their mortgage
In addition, the Dodd-Frank Act encourages whistleblowers to come forward any information they have about financial fraud. If this information leads to a successful case, you may be entitled to a portion of the damages awarded. To protect yourself and your fellow citizens, you should allow financial fraud to go unpunished.