Wall Street Reform & Consumer Protection ActOn July 21, 2010, the U.S. government delivered. THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT, which has 2319 pages and went on to set a great journey in the market which made the crisis weaken to make it a tough impact on the companies. Dodd-Frank can be summarized as follows.
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The Consumer Financial Protection Bureau brought a much needed consumer focus to financial products and services. The Consumer Financial Protection Bureau (CFPB) generated considerable debate over its pros and cons and its control. The responsibilities were highly extensive which give them right to examine and enforce regulations to banks and credit unions with assets over $10 billion. The consolidation of all consumer protection responsibilities currently handled by the Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Deposit Insurance Corporation (FDIC), Federal Reserve, National Credit Union Administration (NCUA), the Department of Housing and Urban Development (HUD), and the Federal Trade Com- mission (FTC).
The Financial Stability Oversight Council was established and empowered to act on the banks with bigger assets like 50 billion dollars, which can control them, tell them how to conduct business, restricting the ability to offer financial products or services; terminating one or more activities etc. The council will be lead by the Treasury secretary and made up of top financial regulators. It can act over the banks not only with assets of more than 50 billions but also on those who are inter-connected as well.
The Volcker Rule: American economist and past Federal Reserve Chairman Paul Volcker proposed a rule which would put restrictions on the banks which was later on amended and was liable to limit the ethically questionable practices of banks which could affect the customers adversely and which were unethical too.
There were over 2300 pages and many more products were explained but these three were explained extensively which widely affect the financial conditions and promoted ethical conduct besides saving the market from crisis. It actively promoted as evidence of a strong response to extreme mismanagement of risk in the financial sector. The FSOC also determines that any proposed rule will affect its effectiveness over the financial market. In addition, promises to simplify confusing mortgage disclosure forms won’t be met until 2012 at the earliest.
The Financial Stability Oversight Council was established and empowered to act on the banks with bigger assets like 50 billion dollars, which can control them, tell them how to conduct business, restricting the ability to offer financial products or services; terminating one or more activities etc. The council will be lead by the Treasury secretary and made up of top financial regulators. It can act over the banks not only with assets of more than 50 billions but also on those who are inter-connected as well.
The Volcker Rule: American economist and past Federal Reserve Chairman Paul Volcker proposed a rule which would put restrictions on the banks which was later on amended and was liable to limit the ethically questionable practices of banks which could affect the customers adversely and which were unethical too.
There were over 2300 pages and many more products were explained but these three were explained extensively which widely affect the financial conditions and promoted ethical conduct besides saving the market from crisis. It actively promoted as evidence of a strong response to extreme mismanagement of risk in the financial sector. The FSOC also determines that any proposed rule will affect its effectiveness over the financial market. In addition, promises to simplify confusing mortgage disclosure forms won’t be met until 2012 at the earliest.
Ghillyer, A. 2014. Business Ethics Now: Chapter 6, The Role Of Government. United States of America: McGraw-Hill Education