Enacted by the 111th U.S. Congress and signed by President Barack Obama on 21 July 2010 in response to the 2008 financial crisis, Dodd-Frank aims to promote financial stability, end too-big-to-fail, and protect consumers from abusive financial-services practices. It created the Consumer Financial Protection Bureau and the Financial Stability Oversight Council, imposed derivatives-clearing requirements, and enacted the Volcker Rule restricting banks from proprietary trading with depositors' funds, implemented via a 2013 joint final rule from five federal regulators.
The Volcker Rule prohibits taking positions in securities or derivatives for the purpose of realizing profits from short-term price moves, on the premise that depository banks' core function should be lending and facilitating customer trades, not taking on market price exposures.
Facts
Promulgated ByUnited States Congress, 111th Congress, signed by President Barack Obama 2 Jurisdiction ScopeUnited States federal, banking and financial-services industry 2 Regulatory DomainFinancial services and banking regulation 2 Classification
Legal Status Jurisdiction Scope
Jurisdiction Scope (category) Era
Era (category)21st Century (2000-Present) 2 Connections
Associated With
Dodd-Frank is the major post-crisis reform of the financial regulatory structure that began with the Banking Act of 1933.
Dodd-Frank Wall Street Reform and Consumer Protection Act required US federal banking regulators to implement Basel III capital and liquidity standards domestically.
Both reforms regulate over-the-counter derivatives after the 2008 financial crisis.
Dodd-Frank and Sarbanes-Oxley are the two landmark post-scandal United States financial and corporate-governance reform statutes, Dodd-Frank following the 2008 crisis and Sarbanes-Oxley following the Enron collapse.
Dodd-Frank amended federal securities regulation established by the Securities Act of 1933.
The Volcker Rule is Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Source What is the Volcker Rule? (Demos)
Authored By
Representative Barney Frank, lead House sponsor; the Act is named for him.
Senator Christopher Dodd, lead Senate sponsor; the Act is named for him.
In Legal System
United States federal statute, within the common law tradition.
Source Major Legal Systems in the World TodayRene David and John E.C. Brierley
Sources
1. Dodd-Frank Wall Street Reform and Consumer Protection Act (Wikipedia)
Lead sectionQuote, Lead section
The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as the Dodd-Frank Act, is a United States federal law enacted on July 21, 2010, as the primary legislative response to the 2007-2008 financial crisis-the worst financial crisis since the Great Depression.
2. Dodd-Frank Wall Street Reform and Consumer Protection Act (Wikipedia)
WikipediaLead sectionQuote, Lead section
The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as the Dodd-Frank Act, is a United States federal law enacted on July 21, 2010, as the primary legislative response to the 2007-2008 financial crisis-the worst financial crisis since the Great Depression.
What is the Volcker Rule? (Demos)
Demos, 2013Quote
prohibits taking positions in securities or derivatives for the purpose of realizing profits from short-term price moves.
Major Legal Systems in the World Today
Rene David and John E.C. Brierley, Stevens and Sons, 1985In Legal System: Law of the United States
Dodd-Frank Act (Wikipedia)
In Group: United States Financial and Securities Statutes and Rules, Introduction, sentence 1Quote, In Group: United States Financial and Securities Statutes and Rules, Introduction, sentence 1
The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as the Dodd-Frank Act, is a United States federal law enacted on July 21, 2010, as the primary legislative response to the 2007-2008 financial crisis-the worst financial crisis since the Great Depression.
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