The Dodd-Frank Act versus the Rule of Law
October 9, 2012
In response to the 2008 financial collapse, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Dodd-Frank increased regulation of banks, stockbrokers, insurers and other financial institutions that are "too big -- or interconnected -- to fail" and that could require a government bailout to prevent a banking system collapse, says Roger Koppl, a professor of economics and finance in the Silberman College of Business and director of the Institute for Forensic Science Administration at Fairleigh Dickinson University, and a senior fellow with the National Center for Policy Analysis.
The Act created a board -- the Financial Stability Oversight Council -- composed mostly of the heads of various federal financial regulatory agencies, including some newly created agencies. The Council has the responsibility to identify institutions whose failure might create systemic distress -- and the discretion to impose "prudential" regulations on them different from the regulations imposed on other financial institutions.
Mais
The Act created a board -- the Financial Stability Oversight Council -- composed mostly of the heads of various federal financial regulatory agencies, including some newly created agencies. The Council has the responsibility to identify institutions whose failure might create systemic distress -- and the discretion to impose "prudential" regulations on them different from the regulations imposed on other financial institutions.
Mais
Nenhum comentário:
Postar um comentário