What Happened During The Crisis Is The Reason Why Dodd Frank Essay

1637 Words Nov 2nd, 2016 7 Pages
Going back to Dodd Franks’ role in the crisis what happened during the crisis is the reason why Dodd Frank was created because of the lack of policies. Epstein and Montecino from Political Economy Research Institute state, Dodd Frank came about to “reign in risky practices, increase the capital and liquidity buffers banks had to hold, bring derivatives under-regulation…begin to bring the largest most complex financial institutions…under scrutiny and some regulatory oversight”(1). Thus the creation of a new regulating and compliance law called Dodd- Frank signed into federal law by President Obama on July 21, 2010. Financial Services Chairman Barney Frank and former Chairman of the Senate Banking Committee Chris Dodd created the Dodd-Frank Wall Street Reform and Consumer Protection Act comprised of “849 pages, 16 titles, and 225 new rules across 11 agencies” (Richardson 85). The Dodd Frank Act created new government agencies such as the Consumer Financial Protection Bureau. The Consumer Financial Protection Bureau is an independent bureau within the Federal Reserve in title X of Dodd Frank provides rule-making, enforces and supervises consumer protection services, protects against predatory lending practices among other things. The bureau helped to instill confidence in the banking industry again.
Some opponents of the Dodd Frank act have stated that the economy has been affected by all of the fixed cost banks have because of Dodd-Frank with small banks suffering the…

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