Dodd-Frank Wall Street Reform and Consumer Protection Act
- A comprehensive financial reform legislation passed by Congress in reaction to the financial crisis of 2008. It's designed to offer extensive rules for financial institutions, with the purpose of preventing another crisis. Notably, it established the Consumer Financial Protection Bureau, the Financial Stability Oversight Council, and the Federal Insurance Office, aiming to protect consumers, detect and regulate financial risks, and oversee insurance industry practices, respectively. It also offers a structure for handling the liquidation of collapsing companies, limits taxpayer liability for company failures, and introduces new oversight for the Federal Reserve, hedge funds, and credit rating agencies. It encompasses reforms for the mortgage and derivatives markets and bestows more rights to shareholders in corporate governance and executive payment decisions
- The Dodd-Frank Wall Street Reform and Consumer Protection Act has imposed additional regulations on financial institutions to avert another economic meltdown.
- One of the pivotal results of the Dodd-Frank Wall Street Reform and Consumer Protection Act is the creation of the Consumer Financial Protection Bureau.
- The Dodd-Frank Wall Street Reform and Consumer Protection Act includes rules for the liquidation of failing companies, thereby decreasing taxpayer liability.