What Is Dodd Frank?
Dodd Frank is also another term for the Consumer Protection Act. Its complete term is Dodd- Frank Wall Street Reform. This was issued as a law by President Barrack Obama in July of 2010. This act is basically a way of producing financial regulatory reform and as a response to different economic issues.
This is termed as Dodd- Frank since it was initially proposed by Barney Frank from the House of Representatives and Chris Dodd from the Senate Banking Committee. Since they were the ones who reported the said bill, it was named after them. This act is actually a very grave change in the financial environment of USA. In fact, it has affected different financial services and industry already. Thus, resolving into this act was definitely a major reform.
Basically, this act was made in order to first identify the risks in the financial stability of the US not only in financial organizations, but in non- financial organizations as well. It is also for the promotion of discipline, and the elimination of the expectation that the Government will be shielding them from loses should failure arise.
Now, the council working on this has several duties to perform. First is to enhance the integrity, efficiency, and competitiveness of the US financial market. It is also tasked to promote discipline in the many sectors and departments of the government. They also have to bring back the confidence of the investors on the government. They are also tasked to update or report whatever has been done by the council. This is for proper monitoring and evaluation of the current situation. Thus, there will be changes to be done should it be needed.
Indeed, this has been another major move from the government. Of course, this is currently in progress in order to combat the financial crisis.