Posted in Finance, Accounting and Economics Terms, Total Reads: 597
Definition: Dodd-Frank Legislation
It is a Wall Street reform also known as the Consumer Protection Act established in the United States of America federal law. It was enacted in July 2010, after the financial crisis of 2008-09, with an aim of preventing another crisis by establishing regulatory processes that enforce transparency and accountability.
This legislation mainly focused on financial institutions like banks, hedge funds and financial transactions like derivatives, the main objective being reduction in the federal dependence on banks, prevent risky lending and ensuring an orderly shut-down of banks if a company goes under.
Thus it aimed at eliminated the need for bailouts using tax-payer’s money.