Dodd-Frank Act

What is the Dodd-Frank Act?

The Dodd-Frank act created new rules for banks and other financial institutions. These include requirements for capital reserves, liquidity buffers, and stress tests. In addition, the act established the Consumer Financial Protection Bureau (CFPB) and gave it broad authority to regulate consumer lending. The CFPB is charged with protecting consumers from unfair, deceptive, or abusive practices in the marketplace.

Key Provisions of the Dodd-Frank Act

  • Requires large financial institutions to maintain adequate capital reserves.
  • Establishes a Volcker Rule prohibiting proprietary trading by federally insured depository institutions.
  • Prohibits banks from engaging in certain types of transactions with funds and private equity firms.
  • Requires banks to establish liquidity cushions to help them withstand economic downturns.
  • Establishes a CFPB to oversee consumer lending.
  • Creates a resolution regime for systemically important financial institutions.

Board of Governors of the Federal Reserve System

The Fed's primary role is to regulate the nation's banking system and ensure its stability. Its most essential responsibilities include maintaining price stability (the ability to keep prices stable) and providing liquidity (making sure banks have access to money).

Which element in damp does the Dodd-rank act add?

The Dodd-Frank Wall Street reform act (DFA) was passed on July 21, 2010. It was signed into law by President Barack Obama on September 23, 2010. The DFA is intended to protect consumers from fraud and abuse in the financial services industry. It requires financial institutions to follow specific regulations regarding their activities. The act has been criticized by some economists who say it will not prevent future crises such as those experienced during the Great Recession.

Dodd-Frank Wall Street Reform and Consumer Protection Act

The act created new regulatory bodies within the U.S. federal government, including the Consumer Financial Protection Bureau (CFPB), which protects consumers from predatory lending practices. It also gave the Securities and Exchange Commission (SEC) broad powers to regulate publicly traded companies and required large banks to hold capital against future losses.

The Laws That Govern the Securities Industry

The Dodd-Frank Act has brought significant changes to the way companies raise capital from investors. These include new rules governing disclosure requirements, corporate governance standards, and the creation of the Public Company Accounting Oversight Board (PCAOB).

How Does Regulation Affect Companies?

  • Regulation can be costly, but it can also create opportunities for businesses. Here’s how the law affects your company:
  • Regulation increases costs. When a business must comply with many different regulations, it may need to hire additional staff or buy expensive software. This cost can affect profits.
  • Regulators can change the rules. If a regulator decides to make an existing law stricter, this could cause you to lose customers. Or, if the regulator chooses to loosen a rule, you can attract new customers.
  • Regulations can help you grow. Some restrictions require businesses to disclose certain information. Other rules allow you to offer new products and services.

What Is the SEC?

The Securities and Exchange Commission (or SEC) is part of the executive branch of the United States federal government. It regulates public companies through the registration process.

Who Are the SEC Commissioners?

The SEC comprises five commissioners appointed by the president and confirmed by the Senate. They serve staggered six-year terms. In 2017, there were three vacancies, so two commissioners served until January 2018. Currently, the commission consists of Chairman Gary Gensler, Hester Peirce, Allison Herren Lee, and Caroline Crenshaw.

Conflict Minerals An Assessment of the Dodd-Frank Act

The Dodd-Frank Act requires companies to disclose information about conflict minerals used in their products. This includes information about where the minerals come from, who owns them, and their steps to ensure that they aren't being mined using child labor.

Frequently Asked Questions

  • What is the Dodd-Frank SEC Whistleblower Program?

A: The Dodd-Frank SEC Whistleblower program allows employees to report fraud or other wrongdoing without fear of retaliation. To qualify for whistleblower protection, an employee must provide evidence that they reasonably believe shows a violation of law, rule, or regulation. The SEC program also allows whistleblowers to receive a percentage of the amount recovered as a result of the information they provided.

  • Who is eligible to apply for the Dodd-Frank SEC whistleblower program?

A: Anyone with knowledge of violations of the federal securities laws. Although there are some exclusions on who can file an SEC whistleblower action, most people qualify and are eligible for a reward of 10%-30% of the amount recovered should their information result in a successful enforcement action.

  • Can I be fired if I report a suspected law, rule, or regulation violation?

A: No, you cannot be fired for reporting a suspected violation of the law. However, you may face disciplinary action, such as suspension or termination.

  • Will I get paid if I report a suspected violation of the federal securities laws

A: Maybe. The SEC whistleblower program provides that whistleblowers who submit original information that leads to a successful recovery above $1 million are entitled to between 10% and 30% of the amounts recovered.

  • What if my whistleblower tip results in a recovery of less than $1 million?
  • Does the SEC investigate all whistleblower tips?

A: Yes. The SEC investigates every tip received.

  • Is the Dodd-Frank SEC whistleblowing program confidential?

A: Yes, whistleblowers' identities are protected.

Contact our Dodd-Frank Whistleblower Attorneys Today

Our Dodd-Frank whistleblower lawyers can represent your whistleblower case, and we offer free consultations for all types of whistleblower fraud lawsuits. For more information, you can contact The Whistleblower Advocates at (833) 310-3147 for a FREE, confidential consultation.

 

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