January 19, 2012
The Wall Street Reform and Consumer Protection Act of 2010, also known as Dodd-Frank Act (after its sponsors Rep. Barney Frank and Christopher Dodd) is only beginning to take effect. Big portions of the financial reform law are set to go into effect this year 2012.
Passed as a response to the 2007-2000s great recessions, the Dodd-Frank act is a United States federal law that places regulation of the financial industry in the hands of the government. The legislation, enacted in July 2010, aims to prevent another significant financial crisis by creating new financial regulatory processes that enforce transparency and accountability while implementing rules for consumer protection.
The act brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression, a severe worldwide economic depression in the 20th century preceding World War II.
Below is Dodd-Frank simplified guide presented in a graph.
Credit: Bloomberg Businessweek