Provisions of the Dodd–Frank Wall Street Reform and Consumer Protection Act
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The Dodd–Frank Wall Street Reform and Consumer Protection Act was created as a response to the financial crisis in 2007. Passed in 2010, the act contains a great number of provisions, taking over 848 pages. It targets the sectors of the financial system that were believed to be responsible for the financial crisis, including banks, mortgage lenders, and credit rating agencies. Ostensibly aimed at reducing the instability that led to the crash, the act has the power to force these institutions to reduce their risk and increase their reserve capital.
The Financial Stability Oversight Council and the Orderly Liquidation Authority were created to monitor the financial stability of major financial firms, 'deemed too big to fail'. The Consumer Financial Protection Bureau was created to prevent predatory mortgage lending. The Volcker Rule restricts how banks can invest, and the Office of Credit Ratings was charged with ensuring reliable credit ratings. The act also strengthened the existing whistleblower program.
Under the Trump administration, many of the more stringent provisions were rolled back in 2018 due to pressure from critics and the affected industries.