{"id":352707,"date":"2016-04-04T10:42:08","date_gmt":"2016-04-04T15:42:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/securities-law\/what-is-the-dodd-frank-act.html"},"modified":"2024-04-29T15:48:45","modified_gmt":"2024-04-29T20:48:45","slug":"what-is-the-dodd-frank-act","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/securities-law\/what-is-the-dodd-frank-act.html","title":{"rendered":"What Is the Dodd-Frank Act?"},"content":{"rendered":"\n
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What Is the Dodd-Frank Act?<\/h1>\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The 2008 financial crisis turned the financial markets upside down. The financial disaster was in large part due to the behavior of banks. As a result, the U.S. government instituted a series of "bailouts" administered by the Federal Reserve under the Troubled Asset Relief Program<\/a>.<\/p>\r\n

Additional Congressional enactments followed as Congress passed financial regulations in response to the crisis. President Obama signed the Dodd-Frank Act into law in 2010. It’s also known as the Dodd-Frank Wall Street Reform and Consumer Protection Act<\/a> (Dodd-Frank Act). It sought to prevent another financial crisis and restore stability and oversight in the financial systems.<\/p>\r\n

Read on to learn more about the Act and how it affects you. See FindLaw’s Financial Crisis<\/a> and Securities Law<\/a> sections for even more articles.<\/p>\r\n

What Does the Dodd-Frank Act Do?<\/h2>\r\n

The Dodd-Frank Act initiated a broad range of reforms affecting nearly every aspect of the financial system. The federal law sought to prevent a repeat of the 2008 crisis and the need for future government bailouts. The Act also sought to establish additional consumer and investor protections.<\/p>\r\n

The Senate subcommittee investigating the financial crisis concluded that the following forces caused the crisis:<\/p>\r\n