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
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).
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.
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 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).
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.
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.
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.
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.
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.
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.
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.
A: Yes. The SEC investigates every tip received.
A: Yes, whistleblowers' identities are protected.
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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