Preview

Dodd Frank Wall Street Reform

Good Essays
Open Document
Open Document
222 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Dodd Frank Wall Street Reform
In 2008 there was a significant banking crisis that led to "the great recession," during which millions of people lost their homes, their jobs, and their standard of living. This disaster was caused by reckless behavior on Wall Street.

The federal government responded to this crisis by spending hundreds of billions of taxpayer dollars to bail out Wall Street. While the government rushed to save the big banks because "they were too big to fail," they did very little to hold Wall Street executives responsible for their illegal behavior, and not nearly enough to reform the banking system and prevent such a crisis from happening again. The Dodd-Frank Wall Street Reform and Consumer Protection Act did provide some very important regulations
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Inside the Meltdown
    • 490 Words
    • 2 Pages

    Inside the Meltdown

    Fannie Mae and Freddie Mac, the two largest mortgage lenders in the world, lost 60% of their stock value in July 2008. The government fired the management and the feds took over both companies. Then in the beginning of September, Lehman Brothers, another investment bank, had their stock dropping quickly. It was once again toxic investments that once made them money before, but now was responsible for their company plummeting. The government would not intervene with Lehman and they let them fail. It turned out that Lehman Brothers was even more interconnected than anybody thought. Because of Lehman’s bankruptcy, no one could get a loan and everything freezes. The meltdown had begun.…

    • 490 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Dodd Frank Reform Executive Summary
    • 1074 Words
    • 5 Pages

    Dodd Frank Reform Executive Summary

    The Dodd-Frank reform is a financial reform passed by the Obama administration in 2010 as a respond to the financial crisis of 2008. The act has numerous provisions that are intended to decrease risks in the economy. The reform intended to decrease the risk in financial markets, provide transparency and accountability to executives, and allow stakeholders to have an opinion on executive compensation. Proponents of the law believe that it will help prevent a crisis like the one we faced in 2008 but critics believe that it will hinder economic growth. During this assignment will focus on questions regarding executive pay and the regulations placed by the Dodd-Frank reform.…

    • 1074 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Pros And Cons Of Dodd Frank Reform
    • 1644 Words
    • 7 Pages

    Pros And Cons Of Dodd Frank Reform

    As a result, the housing market prices were increasing at a faster rate than wages were, resulting in people who had bought a house at a price they could not afford, were now defaulting on their loans. Once they realized what exactly was going on, they could not prevent what was bound to happen, and that was the beginning of the 2008 financial…

    • 1644 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Effectiveness of Dodd-Frank Act
    • 1640 Words
    • 5 Pages

    The Effectiveness of Dodd-Frank Act

    Why did the Dodd-Frank Act come about? In 2008 the economy suffered a great recession and Dodd-Frank was suppose to be the answer, the tool to fix the financial problems in the U.S. if you will. Dodd-Frank put financial regulations that were said would turn the recession around and help prevent a recurrence on financial institutions. There are said to be many reasons why the economy started to plummet some say the housing market was the reason for the downward spiral of the economy and others say the banking system had a huge hand in the recession as well along with credit reporting agencies that falsely reported scores. There are many contributing factors that could have been the reason for the financial downturn of the U.S. and the Dodd-Frank Act is supposed to be the answer for regulating banks and implementing consumer protection. In…

    • 1640 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Dodd Frank Consumer Protection Act
    • 489 Words
    • 2 Pages

    Dodd Frank Consumer Protection Act

    In 2010 President Obama passed a consumer protection act formally titled the “Dodd-Frank Wall Street Reform and Consumer Protection Act.” This act was passed after the 2008 financial crisis to try to “promote the financial stability of the United States by improving accountability and transparency in the financial system,” and to put an end to ‘‘too big to fail’’ banks. Although the act was built on good intentions, Dodd-Frank has accomplished little of its intended purposes, and has only followed through in ways damaging to consumers.…

    • 489 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    The Dodd-Frank Reform
    • 348 Words
    • 2 Pages

    The Dodd-Frank Reform

    The Dodd-Frank Reform was passed in 2010. The purpose of this legislation is to change risky lending practices. One of the causes of the 2007 financial crisis was the high volume of high risk loans that were being bought and sold by financial institutions. The Dodd-Frank Reform would prevent financial institutions from issuing predatory and high risk loans.…

    • 348 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Dodd-Frank: What It Does And Why It's Flawed
    • 1638 Words
    • 7 Pages

    Dodd-Frank: What It Does And Why It's Flawed

    In 2008, a global financial crisis was in its prime and affecting the United States substantially. The government felt compelled to take immediate action to ensure the American people that they would never be subject to such financial vulnerability ever again (Smith & Muniz-Fraticelli, 2013). The response to this financial crisis was the Dodd-Frank Wall Street Reform and Consumer Protection Act. The act is complex and lengthy; it also states that its purpose is to promote the financial stability of the United States by improving accountability and transparency in the financial system, and most importantly to protect the American tax payer.…

    • 1638 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    DODD FRANK ACT
    • 1665 Words
    • 7 Pages

    DODD FRANK ACT

    The economic crisis we have endured for the past few years has been compared to the Great Depression; a downward spiral that seem inevitable and consumed anyone in its path. It seemed like every major company needed financial assistance; bailouts, after bailouts seemed almost never-ending. Then came the Dodd-Frank Act, a proposal that was made to avoid such an epidemic from ever reoccurring again. The Dodd-Frank Act presented rules and regulations that financial industries must abide by, and in the grand scheme of things, its assumed to protect taxpayers/consumers. There are many arguments against the Dodd-Frank Act, disputes that accuses the act of causing the consumers to pay its consequences in the long run.. This paper will explain the Dodd-Frank Act’s impact on the economy, consumers, credit and the industry.…

    • 1665 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Great Depression Compare And Contrast Essay
    • 681 Words
    • 3 Pages

    Great Depression Compare And Contrast Essay

    Almost seventy years after the worst economic crisis struck the world in the 1930s, history repeats itself again. The Great Depression that occurred in 1929 and today’s great recession have many similarities. Both had disastrous effects on the global economy. Like today, many years of economic deregulation paved the way for these turmoils and social troubles. Banks were giving away cheap credits without running any background information on their customers. People took advantage of this and started buying houses and other luxuries they couldn’t afford. Default in paying back their mortgage led to many problems such as real-estate crisis, rising inflation, soaring unemployment rates, and stock market crash.…

    • 681 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    1930's Essay
    • 487 Words
    • 2 Pages

    1930's Essay

    The United states was in a Great Depression in the 1930’s which caused chaos in the United States. One of the main causes of the United States going into the Great Depression would be the crash of the stock market, although it happened in 1929 it would send the U.S. into the Great Depression throughout the 1930’s. What happened was the everyday american saw how these people were making money by buying stocks, so they figured that they could do it to. But what happened was when all these people bought these stocks the stock market crashed and everyone lost their money. because of the stock market crash this lead to the banks closing. The banks deposits were not insured which meant that people would stop using banks, which meant that the economy went into the Depression.…

    • 487 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    The Dodd-Frank Act
    • 1636 Words
    • 7 Pages

    The Dodd-Frank Act

    This topic of discussion focuses on the Dodd-Frank Act and how it came into existence? Those who were affected by the law, to include the Acts forced regulations on all U.S. financial institutions, private hedge funds, government controlling, compliances, and its protection. The Dodd-Frank Wall Street Reform and Consumer Protection Act, now called The Dodd-Frank Act is a U.S. federal mandated law, one in which was created by the Obama administration and signed into federal law on July 21, 2010. The Act was implemented partly due to the financial crisis of 2008. According to USA government “The Act was created to place regulations on the financial industry that government controls.” The agency created was the Financial Stability Oversight Council,…

    • 1636 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Great Depression
    • 776 Words
    • 2 Pages

    Great Depression

    It all began with the over production in agriculture and industry. Farmers bought tons of farm equipment with loans, but then could not afford to pay them back. Therefore, small banks that gave the loans failed and big banks lost millions of dollars. In industry, people bought all they could and factories produced too much so the companies had to lay off workers and the unemployment rate soared. The stock market then crashes because banks invested peoples’ money in the stock market, but all of the money was gone. Everyone lost billions of dollars. After all of this had happened, the final cause that made everyone go crazy were the banks failing. The farmers couldn’t pay back loans. The factories couldn’t pay back loans. The stock markets crashed. People were going to the banks and demanding for their money, but by the time they got there, the doors were already shut. Everyone thought, ”What do we do now? We had lost everything we have lived for.”…

    • 776 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    The White Underclass
    • 2101 Words
    • 9 Pages

    The White Underclass

    The United States economy took a turn for the worse in 2008, and has been steadily declining ever since. The reason for the financial crisis began with the failing of the financial institutions, which threatened the global economy. The reason for the failing of the largest financial institutions can be debated, but many believe that it was due to the failure of accurately and safely evaluating the risks involved in their lending procedures. Whatever the reason, the recession had a massive impact on the country, and none were affected more than the Americans living at or below the poverty level. These people are known as the American underclass.…

    • 2101 Words
    • 9 Pages
    Good Essays
    Read More
  • Good Essays

    Causes And Consequences Of The 2008 Recession
    • 373 Words
    • 2 Pages

    Causes And Consequences Of The 2008 Recession

    The Recession of 2008 caused widespread panic and distress globally. Trillions of dollars were lost during this time. It was a frightening time for people because they were unsure of what was to come regarding their situations. These losses of money lead to a decrease in consumer spending, which decreased the GDP. This then invoked companies to lower salaries and cut large numbers of their employees. The huge loss of jobs made the unemployment rate skyrocket. All of these consequences of the Recession put many people under stress and lead to an increase in poverty in working class families. The documentary, Inside Job, covered the causes and consequences of the Recession in great depth. There are many underlying causes that lead to…

    • 373 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    The Great Depression
    • 348 Words
    • 2 Pages

    The Great Depression

    The Great Depression began with the Wall Street Crash of October, 1929 and rapidly spread worldwide. The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement. Although its causes are still uncertain and controversial, the net effect was a sudden and general loss of confidence in the economic future. The usual explanations include numerous factors, especially high consumer debt, ill-regulated markets that permitted overoptimistic loans by banks and investors, the lack of high-growth new industries, and growing wealth inequality, all interacting to create a downward economic spiral of reduced spending, falling confidence, and lowered production.…

    • 348 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics