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What Is Dodd-Frank and How Does It Affect Small Business?
President Donald Trump has only been in power a few weeks, but he’s already gone to leaps and bounds in order to deliver on some of his key campaign promises. Since being sworn in, Trump has issued an unprecedented 19 executive orders, actions and memorandum ranging from attempts to curb immigration levels to defeating the Islamic State.
But one of the important ones in terms of business ramifications has been to direct the Treasury to review Barack Obama’s 2010 Dodd-Frank financial regulatory law. Opinions appear to be split over the impact some of these policies have on small business. But what exactly is Dodd-Frank all about and what are its implications?
What is Dodd-Frank?
The Dodd-Frank Wall Street Reform and Consumer Protection Act was an important piece of legislation to emerge from the ashes of the global financial crisis of 2008. Named after its sponsors, Senator Christopher J. Dodd and U.S. Representative Barney Frank, the 2,300 page law was passed by the Obama administration in 2010 in a bid to eliminate various risks across America’s wider financial system.
Dodd-Frank includes a range of 225 regulations, and sets up several new government agencies, including the Financial Stability Oversight Council and the Consumer Financial Protection Bureau (CFPB). The latter has since been tasked with preventing predatory mortgage lending. Meanwhile, Dodd-Frank’s key Volcker Rule restricts the ways big banks are allowed to invest and eliminates proprietary trading.
Likewise, one of Dodd-Frank’s more widely known provisions has been its so-called “too big to fail” clause, which has put new regulatory burdens on big financial institutions that have the ability to spark financial contagion if they become insolvent.
Why is Dodd-Frank Controversial?
At face value, Dodd-Frank sound that controversial. After all, it’s just a list of guidelines for banks supposedly insuring they avoid risky loaning proceedures. But there’s plenty of valid criticism of the law, too.
Read the full article here: https://smallbiztrends.com/2017/02/what-is-dodd-frank.html
But one of the important ones in terms of business ramifications has been to direct the Treasury to review Barack Obama’s 2010 Dodd-Frank financial regulatory law. Opinions appear to be split over the impact some of these policies have on small business. But what exactly is Dodd-Frank all about and what are its implications?
What is Dodd-Frank?
The Dodd-Frank Wall Street Reform and Consumer Protection Act was an important piece of legislation to emerge from the ashes of the global financial crisis of 2008. Named after its sponsors, Senator Christopher J. Dodd and U.S. Representative Barney Frank, the 2,300 page law was passed by the Obama administration in 2010 in a bid to eliminate various risks across America’s wider financial system.
Dodd-Frank includes a range of 225 regulations, and sets up several new government agencies, including the Financial Stability Oversight Council and the Consumer Financial Protection Bureau (CFPB). The latter has since been tasked with preventing predatory mortgage lending. Meanwhile, Dodd-Frank’s key Volcker Rule restricts the ways big banks are allowed to invest and eliminates proprietary trading.
Likewise, one of Dodd-Frank’s more widely known provisions has been its so-called “too big to fail” clause, which has put new regulatory burdens on big financial institutions that have the ability to spark financial contagion if they become insolvent.
Why is Dodd-Frank Controversial?
At face value, Dodd-Frank sound that controversial. After all, it’s just a list of guidelines for banks supposedly insuring they avoid risky loaning proceedures. But there’s plenty of valid criticism of the law, too.
Read the full article here: https://smallbiztrends.com/2017/02/what-is-dodd-frank.html
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