Five years ago, on July 19, 2010, President Barak Obama signed the most far-reaching regulatory reform of the U.S. financial system since the end of the Great Depression – Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Act has three core pillars:
- enhanced protection of consumers;
- expanded regulatory reach over risk management (including the markets for derivatives), and
- the Too-Big-To-Fail (TBTF) safeguards.
Given its ambitious scope, the Act was designed to shape American response to the Global Financial Crisis, both in terms of addressing some of the underlying causes, and mitigating future systemic risks. Not surprisingly, the passage of the Act was lauded at the time as a historic moment
My first post, covering Consumer Protection and Derivatives regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act is available here.
My second post on Dodd-Frank Act, covering regulation of TBTF banking and financial institutions is available here.