DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

Dodd-Frank Wall Street Reform and Consumer Protection Act



Dodd-Frank Wall Street Reform and Consumer Protection Act

Introduction

The Federal Statue of United State of America was passed the Dodd-Frank Wall State Reform and Consumer Act. The Act was signed by the President of U.S, Barak Obama on July 21, 2010. The purpose of this law is based upon the reform of financial regulation agendas and controls democratically the Barak Obama administration and 111th United State Congress. This paper is analyzing a brief summary of overall procedures and rules of Dodd-Frank Wall Street Reform and Consumer Protection Act. On December 2, 2009, the law was proposed by Barney Frank before the House of Representative and by Chris Dodd before Senate Banking Committee. However, the involvement of Frank and Dodd in the bill, the committee of the conference was reported the bill on June 29, 2010. It was in order to name the bill through voting (Cooley, Acharya & Richardson, 2010).

The Act has brought a frequent change in financial regulation in the U.S; The Act was passed during the late-2000s recession, and had a vital change in U.S since the Great Depression. Before the Bill proceeded to as an Act, the Financial System of the U.S was significantly influencing by Federal agencies of finance, and services of the financial industry. The financial crisis during 2007-2010 was become the reason of urgent meeting calls and brought the change in the regulatory system in regarding finance. In order to sweep overhaul of the "financial regulatory system" of U.S, a proposal was introduced by the President Barak Obama (Clowers, 2011).

Discussion

Categories of Act

The Act involves 243 rules and 22 periodic reports on issues (Brown, 2010).

Title I

Financial Stability

This title has two main functions to monitor and these are systematic risk and bank holding companies.

Systematic Risk Management

The Federal Reserve is authorized to regulate these companies. The council recommends intensified prudential standard for the Federal Reserve (Cooley, Acharya & Richardson, 2010).

Title II

Financial Stability Oversight Council

Membership

The Treasury Secretary is the voting members. The directors of Federal Insurance Office (FIO) are nonvoting members (Clowers, 2011).

Quarterly Meetings

Whenever the Treasury Secretary or majority members call a meeting, the Council meets. The meeting calls are not less than quarterly.

Council-Voting

A majority vote requires for council. However, in some specific procedure like designation of systematically important, a 2/3 vote is necessary. It also requires the affirmative vote by Treasury Secretary.

Date-Start

There is no official date. The Act believes that the council can start operation at any time within the law. Duties and Powers of Financial Stability

The goal of the Council is to identify the risk in order to maintain and regulate the financial stability of U.S.

To support the promotion of discipline in U.S financial market

To respond the emerging threats of market

International Consultation

This Act also includes the international activities in regards of finance. However, the Council has to consult with appropriate authorities in order to practice the authority of systematic oversight (Brown, 2010).

Professional and Technical Advisory Committees

Expert, professional and technical advisory ...