Its an oftenly stated human cliché to never feel “Too Big for ones own boots.” However cliches only seem to gain there momentum in the wake of a crisis. A company at its prime which could not have dared to be looked at with disdaining eyes had finally crumbled. The Lehman brothers resilience has to credited towards the strive that was taken to open operations on a daily basis in the mast of a world financial criss in 2008, however whether that can be attributed towards a wholehearted desire to keep the company afloat or the sheer power of human greed is a debate left for another occasion.
The Dodd-Frank Act was Signed into law by President Barack Obama on July 21 2010. The act served to imbibe through its provisions a nexus of revolutionary change in relation to governance of cooperation's, their stability and future prevention of the big boot syndrome.
The three central pillars of the act revolve around a systematic management of risk, establishment of stricter regulatory authorities and taking no reputation no matter how resplendent it is for granted.
The titles under the act cover a variety of avenues, some of which that stand out are: financial stability, orderly liquidation authority, Transfer of Powers to the Comptroller/ the FDIC/ and the FED, Regulation of Advisers to Hedge Funds and Others, Wall Street Transparency and Accountability, Bureau of Consumer Financial Protection and the Pay It Back Act.
Financial stability was the imperative building block from where Dodd-Frank arose. The basis of stability is self-sufficiency where companies can no longer be reliant upon the government as a scape goat measure.
orderly liquidation authority is responsible for enlightening the government and the public of the defaults which have been undertaken by a company under possible receivership. An orderly liquidation fund is to be set up for unforeseen circumstances relating to the financial liquidation of a company.
Transfer of Powers to the...
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