The Dodd-Frank act has defined the American financial system since 2010. The law was passed by Congress in order to increase accountability and regulation for banks, financial intermediaries, and market exchanges. The bill has been highly disputed across the United States, with critics saying the law either goes too far or doesn’t go far enough. Many deadlines for implementation of additional parts of the law have been missed (Liu) and as of recently a repeal bill has been passed through Congress. (Cox) The Dodd-Frank Act has five primary objectives: promoting better supervision over financial intermediaries, improving market regulations, establishing a financial consumer protection agency, establishing new methods to resolve problems with non-banks, and increase international regulatory standards.
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The implementation of the Dodd-Frank, consequently, has had both positive and negative effects. Conservatives have many issues with the Dodd-Frank Act and rightly so. The law puts too much emphasis on putting banks and financial intermediaries under the microscope by trying to regulate every activity the bank participates in. This issue was highlighted recently as Chairwoman of the Federal Reserve Janet Yellen emphasized that we must not burden …show more content…
(Torry) This overregulation can be a big problem as it strains the amount of business banks can do and it hinders economic growth and business investment. Moreover, the bill was rushed into law so many of its components were poorly constructed and this caused much of the bill to be delayed or cancelled when it came to implementation deadlines. (Liu) Conversely, Dodd-Frank has provided many positives in addition to its negatives. The law protects consumers from high commission and extreme interest rates. (Frankel) The bill also protects
The implementation of the Dodd-Frank, consequently, has had both positive and negative effects. Conservatives have many issues with the Dodd-Frank Act and rightly so. The law puts too much emphasis on putting banks and financial intermediaries under the microscope by trying to regulate every activity the bank participates in. This issue was highlighted recently as Chairwoman of the Federal Reserve Janet Yellen emphasized that we must not burden …show more content…
(Torry) This overregulation can be a big problem as it strains the amount of business banks can do and it hinders economic growth and business investment. Moreover, the bill was rushed into law so many of its components were poorly constructed and this caused much of the bill to be delayed or cancelled when it came to implementation deadlines. (Liu) Conversely, Dodd-Frank has provided many positives in addition to its negatives. The law protects consumers from high commission and extreme interest rates. (Frankel) The bill also protects