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Dodd-Frank Wall Street Reform and Consumer Protection Act

Bill Number: HR-4173

Public Law Number: 111-203

Disposition: 2010-Jul-21
Enacted - Signed by the President

Once the president signs a bill, it becomes a law.

Full title...
An act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes

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Bill Text (Reading difficulty: Hard)
Vote (House)
Vote (Senate)
More Information

Sponsor & Key Contributors
Chris Dodd (Senate)
Barney Frank (House)

Other names for this bill...

This law often is referred to as simply Dodd-Frank, after its sponsors.

This bill is an attempt to prevent nationwide financial breakdowns

This bill attempts to fix the problems that caused the global financial crisis of 2008, including poor regulation of the financial industry and predatory lending by home mortgage lenders.

It provides protections for Americans from abuses by large financial companies. It creates rules and structures to make sure these companies do not become so big that their failure would cause a crisis to the general economy.

New agencies this bill creates

This bill creates various agencies to accomplish these new protections. These agencies include...

o The Consumer Financial Protection Bureau (CFPB), which protects consumers from abuses by banks and other financial institutions.

o The Financial Stability Oversight Council (FSOC) to watch for risks throughout the financial system.

o The Federal Insurance Office to monitor insurance industry practices that could lead to a financial crisis.

Title II - Liquidation procedures for large institutions

Title II of the bill provides a process to liquidate large financial companies that are close to failing.

Rather than having banks declare bankruptcy, the Federal Deposit Insurance Corporation (FDIC) will work with banks to carry out the process over a 3 to 5 year period.

Most of the losses would be borne by the shareholders and creditors - maintaining the stability of the nation's economy. The process also would protect payouts to claimants - making sure they receive at least as much as they would have had the company gone into bankruptcy.

Volcker Rule restricts risky investments by banks

Section 619 of the bill prohibits banks from making certain speculative investments that contributed to the 2008 financial crisis.

This regulation is referred to as the Volcker Rule, because it was proposed by former Federal Reserve Chair Paul Volcker.

Title IX - Investor Protection and Securities Reform Act

Title IX of the bill - the Investor Protection and Securities Reform Act - requires financial brokers and advisers to act in their customers' best interests when advising them about investments.

Title X - Consumer Financial Protection Bureau

Title X of the bill - the Consumer Financial Protection Act - created the Consumer Financial Protection Bureau.

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