The Dodd Frank Act Wall Street Reform And Consumer Protection Act

1726 Words Nov 11th, 2016 7 Pages
The Dodd-Frank Act was a piece of legislature passed by the Obama administration in 2010. This act is formally known as the Dodd-Frank Act Wall Street Reform and Consumer Protection Act. This piece of legislature was a response to the financial crisis of 2008. The Dodd-Frank Act at the time of passing consisted of 2,307 pages, 16 titles and 540 sections of law. This piece of legislation was named after Senator Christopher J. Dodd and Representative Barney Frank who had endorsed this act.

This legislature created two separate entities which are the FSOC and the CFPB. The FSOC’s, or the Financial Stability Oversight Council, main purpose was to monitor the financial stability of major companies which have a direct impact to the economy if they were to go into bankruptcy. The CFPB’s, or the Consumer Financial Protection Bureau, main purpose was to prevent predatory mortgage lending and make consumers more aware of what kind of mortgage they are agreeing to.

In 2008 a financial crisis hit and it not only impacted the people of this generation, but also people of future generations. This crisis left millions of Americans unemployed and nowhere to go. With the unemployment rate reaching record highs people were forced to leave their homes and live on the street. The primary factor that led to this major financial crisis was the irresponsible lenders using hidden fees and fine print to take advantage of consumers and exploit their power over these people. In response to…

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