The Dodd-Frank Act: a cheat bed sheet
Morrison & Foerster
Morrison 1 Foerster
THE DODD-FRANK WALL STREET REFORM AND BUYER PROTECTION ACTION, OR DODD-FRANK ACT, REPRESENTS THE MOST THOROUGH FINANCIAL REGULATORY REFORM PROCEDURES TAKEN BECAUSE THE GREAT DEPRESSION. Morrison 2 Foerster
The Dodd-Frank Act implements changes that, among other things, affect the oversight and supervision of economic institutions, give a new quality procedure for large financial firms, create a fresh agency responsible for implementing and enforcing compliance with consumer financial regulations, introduce even more stringent regulating capital requirements, effect significant changes in the regulation of over the counter derivatives, reform the regulation of credit history agencies, apply changes to corporate governance and executive payment practices, combine the Volcker Rule, need registration of advisers to certain personal funds, and effect significant changes in the securitization market. Even though the legislation demands a number of studies to be executed and requires significant rule-making, many of us will be needed to be thoroughly acquainted with the Dodd-Frank Work. In the webpages that follow, we summarize the main aspects of the Dodd-Frank Work. As attorneys, we would reflexively say that this can be a summary, in support of a very short summary at that, and that all this qualified in the entirety simply by reference to our more full (and far longer) explanations and analysesвЂ¦. As people who receive plenty of summaries, we might say short is usually better. We hope you will find these brief summaries beneficial.
Financial Balance Reform
Quite a few government agencies are responsible for regulating financial institutions. Commentators have noted that with no governing body system to oversee the various firms, we continue to be vulnerable to regulating gaps and oversight failures. The Dodd-Frank Act produces the Economical Stability Oversight Council (" CouncilвЂќ) to oversee financial institutions. Creation with the Council в€’ Chaired simply by Secretary of Treasury в€’ Voting members consist of minds of the Treasury, Federal Arrange, OCC, SEC, CFTC, FDIC, FHFA, NCUA, and the Bureau of Consumer Financial Safety (" BureauвЂќ), as well as an independent member with insurance experience appointed by President and confirmed by Senate в€’ Non-voting users include the director of the Workplace of Financial Exploration, the representative of the Government Insurance Business office, a state insurance commissioner, a situation banking boss, and a situation securities commissioner Purpose of the Council в€’ Identifying dangers to U. S. economic stability which may arise by ongoing actions of large, interconnected financial companies as well as coming from outside the finance marketplace в€’ Promoting industry discipline by eliminating expectations of presidency bailouts в€’ Responding to growing threats to financial balance Duties in the Council в€’ Collect info necessary to examine risks to the U. S. financial system в€’ Provide way to the Office of economic Research to back up the work of the Council в€’ Monitor the financial services market place and recognize potential hazards to U. S. monetary stability, as well as regulatory proposals affecting sincerity, efficiency, competition, and balance of the U. S. financial markets в€’ Facilitate data sharing and coordination between member companies and other government and point out agencies в€’ Recommend for the member firms general relief priorities and principles highlighting the outcome of discussions among the list of member companies в€’ Determine gaps in regulation that can pose dangers to the economical stability with the U. H. в€’ Require Federal Reserve supervision for nonbank economic companies that may pose hazards to U. S. financial stability in case of their material financial stress or failure в€’ Assessment and fill in comments towards the SEC and any standard-setting body
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