What are the key points of the Dodd-Frank Act?

The Dodd-Frank Act enabled the Securities and Exchange Commission (SEC) to regulate derivative trading, or contracts between two parties who agree on a financial asset or a set of assets. These trades can involve the exchange of bonds, commodities, currencies, interest rates, market indexes or stocks.

What is the Dodd-Frank disclosure?

The Dodd-Frank Act imposes comprehensive regulatory requirements on swap dealers including business conduct standards with respect to the execution of “swaps” (1) with certain counterparties of the swap dealer.

What do you think is the biggest weakness of the Dodd-Frank Act?

Possibly the biggest failure of Dodd-Frank is what it neglected to address. Mortgage industry giants Fannie Mae and Freddie Mac, which were at the epicenter of the crisis, continue to dominate the housing finance market. The government guarantees or owns some 90 percent of existing home loans.

What does the Volcker rule prohibit?

The Volcker rule generally prohibits banking entities from engaging in proprietary trading or investing in or sponsoring hedge funds or private equity funds.

What is the Dodd-Frank Act quizlet?

A compendium of federal regulations, primarily affecting financial institutions and their customers, that the Obama administration passed in 2010 in an attempt to prevent the recurrence of events that caused the 2008 financial crisis.

What is the Volcker rule and why and when was it established?

The rule’s origins date back to 2009, when Volcker proposed a piece of regulation in response to the ongoing financial crisis (and after the nation’s largest banks accumulated large losses from their proprietary trading arms) that aimed to prohibit banks from speculating in the markets.

Was Dodd-Frank effective?

Dodd–Frank is generally regarded as one of the most significant laws enacted during the presidency of Barack Obama. Studies have found the Dodd–Frank Act has improved financial stability and consumer protection, although there has been debate regarding its economic effects.

Is Volcker Rule part of Dodd-Frank?

➢ Section 619 of the Dodd-Frank Act, commonly referred to as the Volcker Rule, generally prohibits banking entities from engaging in proprietary trading and from acquiring or retaining ownership interests in, sponsoring, or having certain relationships with a hedge fund or private equity fund.