U.S. Financial Legislative Reform And Its Implications

The subprime mortgage crisis began in 2007 led many institutions into bankruptcy and deteriorated into the global financial turmoil.In the November 12,1999 President Clinton signed the most influential regulatory bill since the Great Depression of-at least the most influential at the time-"The Financial Services Modernization Act", also known as "Gramm-Leach-Bliey Act "(GLBA) Act. After the signing of the Bill, the financial services industry ushered in a major financial deregulation of the rigid structure of financial services which was formed since "The Great Depression" During the financial crisis in 2007-2008 and the subsequent discussion on the regulation of financial services, GLBA has been criticized by the financial sector, academia and government, it is believed that the bill triggered the financial crisis. In response to the financial turmoil, Obama signed the "Dodd-Frank Wall Street Reform and Consumer Protection Act." on July 21,2010. The bill is considered to be the greatest important financial regulatory reform bill since the 1930's in the United States.This paper not only discussed the theory of financial regulation, also study in more detail, these two very important laws of U.S. financial regulation:"The Financial Services Modernization Act" and "Wall Street Reform and Consumer Protection Act". In addition, this paper has analyzed the relationship between the present financial crisis and "The Financial Services Modernization Act", and then discussed the causes of the present financial crisis.This thesis is to study three aspects:the first part briefly talks about the theoretical basis of financial regulation; the second part summarizes the U.S. financial regulatory legislation system; the third part, fourth part of the thesis separately study the financial deregulation in the U.S. legislative reform and legislative reforms to strengthen financial regulation; the fifth part is to propose the legislative implication of the U.S. financial regulatory legislation reform for china Financial regulation.