Dodd Frank - 1299 Words

11-8-2011 Financial Markets amp; Inst Dodd-Frank Assignment The Dodd Frank Act has been created as a regulatory reaction from the recent financial crisis. The magnitude of its implications and provisions has not been seen since the great depression and will be conducted as a major overhaul to the financial systems rules. Financial regulation within a system that clearly had ulterior motives and lacked market discipline is inevitable. Without clear transparency of what and how borrowers are investing individuals savings will surely lead to moral hazard and conflicting interests. With Dodd Frank hopefully some of this asymmetric information will be largely more apparent to an inspecting investor. This Act aims to promote the†¦show more content†¦Along with the greater profitability restrictions imposed on banks from the Dodd Frank comes the banks will for greater cost management, meaning job cuts. Already the Banks have begun laying employees off from burdening restrictions leading to this brutal method of retaining necessary capital needed for operations (Wall Street Journal). The bigger the bank, the greater resentment they have over this act. Their financial statements will have to retain a greater amount of compliance and transparency as well. Because of the large prominence of â€Å"shadow banking† and the concealed balance sheet elements that came along with this practice, the banks now are imposed with greater regulation to prevent these stealthy tactics of borrowing and investing. These restrictions, in my belief, will provide greater protection to the consumer but will also provoke institutions to begin innovating financial instruments to get around b arriers, just as they did in the past with interstate banking and early consolidated services even before Glass-Steagalls act. The bankers oppose the act due to their cut in profits. Reduced outlets in revenue from specific revenue generating activities have been capped and larger expenses in order to comply with the new rules have also greatly cut profitability. The same notion is held with brokers. Because of the greater compliance costs servedShow MoreRelatedWhat Is Dodd Frank?1842 Words   |  8 PagesIV. What is Dodd Frank? 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 â€Å"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 â€Å"reign in risky practicesRead MoreA Study Of The Dodd Frank Act Essay2438 Words   |  10 Pages2010-2016: A Study of the Dodd Frank Act’s Role in a Slow U.S. Economic Recovery After the 2008 Financial Crisis The role that the Dodd-Frank Act plays in the slow economic recovery from the 2008 financial crisis has many aspects. The regulatory and compliance component of the law helped to contribute to the slow economic recovery by adversely affecting the banking industry’s ability to provide credit specifically the community banks, ability to provide enough credit to the small business and start-upRead MoreDodd-Frank Act of 20101079 Words   |  5 PagesKevin Patel Intermediate Accounting I Professor Stubbs Topical Paper 2: Dodd-Frank Act of 2010 In 2008, when the financial crisis occurred, millions of Americans were left without jobs and trillions of dollars of wealth was lost wealth. To make sure the Great Recession would not happen again, President Barrack Obama put into effect the Dodd- Frank Act. With the help of this law, banks will not be able to take irresponsible risks that had negative effects on the American people. FurthermoreRead MoreThe Problem Of The Dodd-Frank Act765 Words   |  4 PagesIn 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 â€Å"Undeterminable†, then on their report to theRead MoreDodd-Fr ank Research Paper8381 Words   |  34 PagesDodd-Frank: A Guide to Financial Reform Elizabeth Ables, Stefanie Gaines, Angela Howell, Samantha Johnston, and Christina Wright This paper is submitted in partial fulfillment of the requirements for Business Ethics and Legal Environment BUS 5933.49 Texas Woman’s University School of Management H. Guy Smith, J.D. December 8, 2012 Table of Contents The Great Recession of 2008 and the Dawn of Dodd-Frank †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 The History of Financial Reform in the United States †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..Read MoreRole Of The Dodd Frank Act Essay2245 Words   |  9 PagesThe role that the Dodd-Frank Act plays in the slow economic recovery from the 2008 financial crisis has many aspects. The regulatory and compliance component of the law helped to contribute to the slow economic recovery by adversely affecting the banking industry’s ability to provide credit specifically the community banks, ability to provide enough credit to the small business and start-up companies. The purpose of this paper is to show the role the Dodd Frank Wall Street Reform and Consumer ProtectionRead MoreThe Dodd-Frank Act Analysis1425 Words   |  6 Pagescreate more jobs and put more money in the pockets of Americans. The rationale was that by having a job, workers would be more likely to spend money, which would thus improve the circulation of money in th e economy. In 2010, Congress passed the Dodd-Frank Act. The purpose of the law was to increase government regulation and transparency of the financial system in order to prevent another bubble from forming due to a lack of regulation. Included in the Act was the creation of the Consumer ProtectionRead MoreDodd Frank As An Effective Measure Against1640 Words   |  7 Pagesin the aftermath of the financial meltdown, Congress passed the Dodd- Frank Act which brought in multitude of financial stipulations and rules that were aimed at avoiding another disaster. There are some who see Dodd-Frank as an effective measure against the causes that led to the 2008 crisis. They view Dodd-Frank as a comprehensive and powerful tool to curtail systemic risk. On the other hand, there are critics who see Dodd-Frank as a symbolic piece of legislation that does nothing more thanRead MoreThe Great Recession and The Dodd-Frank Act1177 Words   |  5 PagesPresident Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is commonly referred as the Dodd-Frank Act. This act was passed as a response to the Great Recession in order to prevent potential financial debacle in the future. This regulation has a significant impact on American financial services industry by placing major changes on the financial regulation and agencies since the Great Depression. This paper examines the history and impact of Dodd-Frank Act on American financialRead MoreThe Dodd Frank Act Was Enacted1401 Words   |  6 PagesIntroduction 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) The general objective of this policy paper is to deeply understand the latest and most influential financial reforms and the current financial environment in U.S through relatively