Dodd Frank is considered the single most significant piece of legislation that the United States government put in place to prevent another financial meltdown as the one we had in 2008. The Dodd Frank Act (Fully known as the Dodd- Frank Street Reform and Consumer Protection Act) aims to prevent a significant financial crisis by creating new financial regulatory process that enforces transparency – financial security. Com. In the wake of the financial crisis, congress came with found resolutions to prevent further derailing of the economy. However, as congress deliberate it in finding forms to tight regulations and add protectionist to consumers. They come out with a resolution that would protect the economy from another financial disaster.
…show more content…
In short, Sarbanes Oxley forces institutions to operate their daily financial activities in the most soundness and prudent matter. With this, audits are delivered as transparent as possible and discrepancy diminishes more. This summarize that financial institution should always operate their audit fairly and with no discrepancy whatsoever. It also force executive to be vigilant as to how the organization is being run and if internal control are being follow appropriately. The effects of these two reforms can be view differently. Perhaps, the Dodd Frank act has been negatively criticist, and all is due to the complexity of the bill and the investment that business incurs implementing it. This, for sure leaves small business out of the margin, as it can be nearly impossible to finance this regulatory changes. According to usnews.com, mentions that protections harm consumers as they have limited product and services that at the end it does not help them to achieve their financial objective. As Dodd Frank creates new codes and regulations to financial institution, is precisely unknown what the effects could bring to the financial system in the future, but overruling the banking system could arise negative effect to consumers. One limitation is that could lessen competitiveness and diminish investment option wisely. However, the purpose of SOX …show more content…
With this, Qwest Bumped up their revenues by not reporting expenses and shifting it as part of their earnings. According to the SEC statement release in Washington, D.C, and Oct 21, 2004. The securities exchange commission charged Qwest communications with securities fraud and other violations of the federal securities laws. The strategy upped stock furiously by swapping assets as if they were sales. On the other hand, Enron’s subconsciously kept recording profits under the application (Mark to Market Accounting) evaluating their assets however they pleased, The Crooked E - The Unshredded Truth About Enron (2003). The accounting team, however, adopted this on every unrealized gain, and in fact they inflated their Wholesale revenues by 50 times its size. Lastly, the regulators were late to the game of deciphering Enron’s accounting numbers. Enron stock was on its way to reaching its high of $90 in late 2000, the analyst and the investor communities was snowed by the media hype and the market euphoria surrounding Enron’s ascendency. Not after the late 2001 where Enron’s stock price hemorrhaged from 90 to as low as 16 per share it became nerve-wracking to its employees, shareholders, and investors. Enron’s traders played as a free market’s and did whatever they could to outperform their stock and manipulate it as they wished. In turn, traders
In short, Sarbanes Oxley forces institutions to operate their daily financial activities in the most soundness and prudent matter. With this, audits are delivered as transparent as possible and discrepancy diminishes more. This summarize that financial institution should always operate their audit fairly and with no discrepancy whatsoever. It also force executive to be vigilant as to how the organization is being run and if internal control are being follow appropriately. The effects of these two reforms can be view differently. Perhaps, the Dodd Frank act has been negatively criticist, and all is due to the complexity of the bill and the investment that business incurs implementing it. This, for sure leaves small business out of the margin, as it can be nearly impossible to finance this regulatory changes. According to usnews.com, mentions that protections harm consumers as they have limited product and services that at the end it does not help them to achieve their financial objective. As Dodd Frank creates new codes and regulations to financial institution, is precisely unknown what the effects could bring to the financial system in the future, but overruling the banking system could arise negative effect to consumers. One limitation is that could lessen competitiveness and diminish investment option wisely. However, the purpose of SOX …show more content…
With this, Qwest Bumped up their revenues by not reporting expenses and shifting it as part of their earnings. According to the SEC statement release in Washington, D.C, and Oct 21, 2004. The securities exchange commission charged Qwest communications with securities fraud and other violations of the federal securities laws. The strategy upped stock furiously by swapping assets as if they were sales. On the other hand, Enron’s subconsciously kept recording profits under the application (Mark to Market Accounting) evaluating their assets however they pleased, The Crooked E - The Unshredded Truth About Enron (2003). The accounting team, however, adopted this on every unrealized gain, and in fact they inflated their Wholesale revenues by 50 times its size. Lastly, the regulators were late to the game of deciphering Enron’s accounting numbers. Enron stock was on its way to reaching its high of $90 in late 2000, the analyst and the investor communities was snowed by the media hype and the market euphoria surrounding Enron’s ascendency. Not after the late 2001 where Enron’s stock price hemorrhaged from 90 to as low as 16 per share it became nerve-wracking to its employees, shareholders, and investors. Enron’s traders played as a free market’s and did whatever they could to outperform their stock and manipulate it as they wished. In turn, traders