The Dodd Frank Act came about in response to the Recession that happened in 2008. The financial industry as we knew it was collapsing and bringing the entire economy down with it. The government knew that something had to be done, and that it had to be done quick. Therefore, they come up with the Dodd Frank Act which has two major overarching goals. The first goal was to limit the risk of contemporary finance or in other words to revise financial reform. The second objective is to limit the damage caused by a large financial institution.
While I do believe that financial reform was necessary, I don’t believe that this type of financial reform was quite what the economy needed. I also don’t believe that the Dodd Frank Act was carried about in the way it was supposed to be. The Dodd Frank Act has only been a third of the way passed and it has not made the significant impact on the economy that it promised. It is also interesting to look at the two goals. It is interesting that we are trying to limit financial risk with same policies that we argued against in the past. Secondly, it is interesting that the government is funding large financial institutions in order so that they won’t cause a large damage to the economy if they fail. If pumping millions of dollars will limit this risk I would appreciate you explaining it to me because I don’t get it.
The information on this more than 300 page act is unlimited. I have done what I believe to be a good job of compiling this information into a 21 page report from the most reliable resources. You choose: read my 21 page report double spaced or read a mind wrenching couple hundred page document. Either way, I do suggest you read and educate yourself because this Act will affect all of you.