The Dodd-Frank Act Analysis

The Consumer Financial Protection Bureau, or CFPB, was created as a tool of financial reform in the legislative package that was authorized by the Dodd-Frank Act, but the law specifically includes terms that prohibit setting interest rate limits, which is contrary to the 36-percent limit that the CFPB is currently trying to mandate as a universal limit on short-term rates. The specifics of the Dodd-Frank Act, according to the www.dodd-frank-act.us, state that the legislation grants, "NO AUTHORITY TO IMPOSE USURY LIMIT" unless such a limit is first passed through due legal processes.

2010-2016: A Study of the Dodd Frank Act’s Role in a Slow U.S. Economic Recovery After the 2008 Financial Crisis

Named after the United States senator Christopher J. Dodd and the United States Representative Barney Frank, the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed in to federal law by the president Barack Obama on July 21, 2010 in an attempt to prevent the events that led to the 2008 financial crisis of occurring again. Commonly known as the Dodd-Frank, the act brought the biggest changes to regulations on financial institutions since the reforms on regulations that followed the Great Depression. The act creates regulatory agencies for financial institutions, as well as an oversight council that is in charge of assessing systemic risk. The council also has the power of restraining the growth of large financial institutions

Prior to the 2008 economic depression, obtaining a mortgage was relatively simple for home buyers. However, many of those mortgages had provisions that made it difficult for borrowers to repay their mortgages (“Dodd-Frank,” n.d.). As a result, many homeowners lost their homes when they were unable to repay their mortgages, which led to the real estate crisis. In 2010 the Mortgage Reform and Anti-Predatory Lending Act, also known as the Dodd-Frank Act, was enacted to reform how mortgage servicers vetted borrowers and to eliminate the use of predatory loan practices (Cheeseman, 2013, p. 485). Under the Dodd-Frank Act, creditors must establish borrower’s credit history, income and expected income, debt-to-income ratio, and other factors before

The legislation was repealed in 1999 when key players from the financial arena urged Congress to pass the Gramm-Leach-Bliley Act to reverse Glass-Steagall’s restrictions on bank securities (Heakal, 2003).

The Dodd- Frank law on whistle-blowing bounty program is an upgrade from the Sarbanes- Oxley. The Sarbanes – Oxley whistle -blower program protected employees from getting retaliated upon by their employers when they report misconduct within the company they are employed. Dodd- Frank law took is a step further, an employee who reports financial misconduct are entitled to receive 10 percent to 30 percent of the fines and settlements if the conviction is upheld and the penalties exceed $1 million dollars (Ferrell, 112, 2013). The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in 2010 (Ferrell, pg. 110, 2013). The focal mission of the Consumer Financial Protection Bureau is to make markets for

From my assessment the possibility for you to consent to a state government as well as a national government is futile. Although the state and national have separate powers, they are capable of challenging each other. Texas is constantly disputing the federal government rules as a consequence; one would have to pick a side. To avoid a financial crisis, in 2010, the Dodd-Frank Act was passed, which meant they could liquidate from large financial institutions in Texas. A lawsuit was filed by Texas Attorney General Greg Abbott due to it, allowing unelected officials’ power over Texas funds without approval. Each having convincing reasoning behind their decisions, one could not comply with both sides considering you are either persuaded by the

The Glass Steagall Act was passed on 1933, which is also known as The Banking Act to tighten regulation on the way banks did their business. This act was written as an emergency measure when about 5,000 banks failed during the Great Depression. Banks mostly failed because of the way they would invest with money. The act prohibits banks from investing money on investments that turn out to be risky. Banks could no longer sell securities or bonds. The act also created Federal Deposit Insurance Corporation (FDIC) to protect the deposits of individuals, which is still used to this date. The FDIC in this era insures your deposits in your bank up to $250,000. This gave the public confidence again to deposit their money in the bank. In 1933

In 2010, Congress passed the Dodd-Frank Act. This law requires certain companies to disclose their use of conflict minerals in their products. This proved to be difficult to enforce due to the loopholes in the laws that allow companies to be caught in legal limbo. If the company can prove that their product is conflict free, then they receive a certificate from the Securities and Exchange Commission(SEC). However, if the companies receive the rating of “Undeterminable”, then on their report to the SEC they must describe the entire process as accurately as possible. The company is not required to obtain a private sector audit, and after 2 years they are required to submit another report with no repercussions. This law is not strict enough,

Financial Services Chairman Barney Frank and former Chairman of the Senate Banking Committee Chris Dodd created the Dodd-Frank Wall Street Reform and Consumer Protection Act comprised of “849 pages, 16 titles, and 225 new rules across 11 agencies” (Richardson 85). It is a heavily regulated complex act created to reign in risky behavior of Wall Street. Epstein and Montecino from Political Economy Research Institute state, Dodd Frank came about to “reign in risky practices, increase the capital and liquidity buffers banks had to hold, bring derivatives under-regulation…begin to bring the largest most complex financial institutions…under scrutiny and some regulatory oversight”(1). Dodd- Frank signed into federal law

The Treasury is now gradually drawing to an end of its remaining TARP investments and continues to implement TARP initiatives to help struggling homeowners avoid foreclosure (Tarp Programs). The American Recovery and Reinvestment Act (AARA), which is also known as the Recovery Act or the Stimulus, is a legislation that was enacted by the United States Congress and signed into law by Pres. Barrack Obama on February 17, 2009. It was designed to stimulate the U.S. economy by saving jobs that were put at risk by the Great Recession of 2008-2009 and to create new jobs (American Recovery and Reinvestment Act). In addition, it created measures to update our nation's infrastructure, enhance energy independence, expand educational opportunities, improve affordable health care, provide tax relief, and protect those in greatest need. The Department of the Treasury initiated nine programs, including tax changes and the delivery of an estimated $150 billion, which were designed to directly relief Americans and their families (Recovery Act). Indeed, these programs were relevant in my

The introduction and advancement of automation and robots has reduced the amount of jobs available for the less educated.

Although the bank should have reorganized prior to the acquisition, the purchase will interfere with normal operations and invite government and regulatory scrutiny (e.g., Dodd-Frank Act). As a result, it is very important for the bank to maintain up-to-date communications with all employees, which will reduce anxiety and fear. That is, employees should never gather employment information from the media and/or unofficially from coworkers (e.g., rumors). Most importantly, the bank must immediately notify and meet with employees (e.g., upper management) that will likely lose their positions due to the acquisition and offer them satisfactory severance packages, which can be paid/available if employees remain until the acquisition is approved

In 2007-2008 the US went into a recession, a financial crisis that has since then taken five years to rebuild. During that time millions of Americans were unemployed and faced many economic struggles which negatively impacted the real estate market causing a multitude of foreclosures. The reason for this recession was because there was no authority over banks and they were not being monitored properly. Banks were able to gamble with the finances of millions of people with no consequences towards their actions. The Dodd Frank Act Wall Street Reform and Consumer Protection Act of 2010 was put into place to make sure that nothing like this ever happened again; The Dodd Frank Act implemented and set laws into place to make sure that banks and financial

The Dodd-Frank Act was enacted to deal with the various problems occurred in the financial crisis. The paramount reason I choose this law is it has brought the most significant changes in the federal financial regulation since the regulatory reform that followed the Great Depression. (Damian & Lucchetti, 2010)