Dodd–Frank Wall Street Reform and Consumer Protection Act
The Dodd- Frank Wall Street Reform and Consumer Protection Act ( " Dodd- Frank Act") is a United States federal law that comprehensively changes in response to the financial crisis of 2007, the Financial Markets Law of the United States. The law is named after the then Chairman of the Committee on Banking, Housing and Urban Affairs of the Senate, Chris Dodd, and the former chairman of the Committee on Financial Services of the House of Representatives, Barney Frank, named and was 21 July 2010 by the signing by President Barack Obama adopted. The Dodd- Frank Act includes a total of 15 tracks with 541 law articles on 849 pages. According to the preamble followed the law's objectives of promoting stability in the financial markets of the United States of America, by improving accountability and transparency in the financial system, the termination of the problem of de facto forced to bail out financial services companies, which are too important to the financial system to let them go down to ( "too big to fail" ), the protection of the American taxpayer by ending of government bailouts of financial services companies (" bailouts " ) and the protection of consumers against abusive practices in financial services.
Overview
The first title of the Act creates the Financial Stability Oversight Council a council to monitor the stability of the U.S. financial market and coordinating the activities of the financial market supervisory authorities of the Federal Government, which the Minister of Finance of the Federation, the chairman of the financial market supervisory authorities of the Federation and an independent by the President appointed with the consent of the senate member with expertise in insurance, belong. Among other things, the Council may make under the supervision of the U.S. central bank, with two-thirds majority financial services companies outside the banking sector. The Financial Stability Oversight Council is assisted in its work by a located somewhere in the Treasury 's Office of Financial Research.
The second title of the Act authorizes the financial market supervisory authorities of the Federation, to provide certain financial services companies in receivership and ordered settled if they are in financial trouble and pose a threat to the stability of the financial markets of the United States.
The third title of the Law solves the savings bank federal regulatory authority, the Office of Thrift Supervision, on and divided their activities into Bank federal regulatory authority for banks with a nationwide banking license, the Office of the Comptroller of the Currency, a.
The fourth title of the Act subject to asset managers of non-authorized for public distribution in the U.S. mutual funds (eg hedge funds, private equity funds, etc. ) under the supervision of the Securities and Exchange Commission of the Covenant, the Securities and Exchange Commission.
The fifth title of the Act creates within the Ministry of Finance, the U.S. Department of the Treasury, a competent insurance issues for the office, the Federal Insurance Office. The Federal Insurance Office to monitor the insurance market of the United States with the exception of Krankenversichung who care insurance and crop insurance. Supervision of the insurance companies will continue to be performed by the insurance supervisory authorities of the member states of the United States. The Federal Insurance Office to the Financial Stability Oversight Council suggest insurance as a financial services company outside the banking sector ( nonbank financial company) in addition to be placed under the supervision of the U.S. central bank. In addition, the Federal Insurance Office is responsible for the development of principles for the regulatory aspects of international insurance matters. The include representation of the United States in the International Association of Insurance Supervisors ( International Association of Insurance Supervisors ) a. In addition, the Federal Insurance Office supports the Federal Finance Minister in the negotiation of bilateral or multilateral agreements for the recognition of regulatory measures for the insurance and reinsurance business, which achieve a substantially equivalent level of protection as the provisions of the member states for the customers. The Federal Insurance Office is also authorized to contradict legislation of member States which bilateral or multilateral agreements and penalize foreign insurance against registered in that member state of the U.S. insurance companies to override.
The sixth title of the Act shall issue a moratorium on the state deposit insurance corporation ( Federal Deposit Insurance Corporation ) to insure the deposits with credit card issuers in the lending industry and certain other through the Bank Holding Company Act of 1956 regulated companies. He strengthened the regulatory regulation of banks, savings banks and their holding companies. The reinforcements include significant restrictions on proprietary trading and sponsorship of investments in hedge funds or private equity funds for banks by the Volcker Rule, a better supervision of subsidiaries, which do not have a banking license, enhanced restrictions on transactions with related parties, restrictions on risks relating to derivatives and counterparty risk in securities lending and the obligation for companies controlled an insured in the Federal Deposit insurance Company society to strengthen the finances of such companies.
The law limited banks in the opportunity to respond on their own account in the financial market risky bets. It will be granted only limited investments in hedge funds and private equity investments. The economic historian Charles Geisst described the new law as the most comprehensive financial regulation since the Great Depression; yet it does not amount to such a fundamental change is how the changes made at that time.
Title Fifteen ( Sec. 1502) imposes on companies that use certain " conflict minerals " ( as such in law gold, wolframite, cassiterite and coltan defined ), documentation and publicity requirements, which are intended to ensure that no resources are used, the serve to finance the armed conflict in the Democratic Republic of the Congo or an adjoining country.