July 24, 2015 -- Tuesday, July 21st, marked the five-year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or Dodd-Frank Act (DFA) for short, and since then there have been a slew of posts on how the massive overhaul of regulations has been successful or unsuccessful. Either way, the Act has certainly changed the way we look at our financial position in the world.
According to one website, the changes wrought by the historic law can be summed up like so:
- Big banks are bigger and have more capital reserves but are probably safer.
- Consumers are more knowledgeable about credit but are less able to get it.
- Restrictions on trading activities might create a worrisome liquidity problem.
Many critics worry that the law, the most sweeping reform of financial law since the New Deal, has created a “regulatory overreach” that makes things tougher for consumers to gain access to credit while small credit unions and banks shutter their doors and big banks get bigger. CNBC notes that “the banking system’s assets have swelled 30% since the financial crisis [of 2008], and the top five institutions control nearly 50% of the total.”
The DFA was designed to address the excesses in financial markets and mortgage lending that triggered the financial crisis and forced massive bailouts of Wall Street firms. NPR states that even after half a decade, regulators have only implemented two-thirds of the mandated DFA regulations.
Edcomm Banker’s Academy is the best source for information and updates concerning the DFA as laws and regulations continue to evolve in light of this game-changing law. Our most popular curricula address the compliance regulations most effective by the DFA, helping to keep you informed of every substantive change that takes place!
Cox, Jeff. “5 years later, 5 things to know about Dodd-Frank.” CNBC. NBCUniversal, 21 July 2015. Web. 24 July 2015.
Ydstie, John. “5 Years Later, Legacy of Financial Overhaul Still Being Weighed.” NPR. NPR, 23 July 2015. Web. 24 July 2015.