Research On Dodd-Frank Wall Street Reform And Consumer Protection Act

The2008Financial Crisis, which evolved from the U.S. subprime crisis,revealed about serious shortcomings of the current U.S. financial regulationsystem. Because of this, U.S. established a series of financial regulation rules totackle with the aftermath of crisis, make preparations in advance for furthercrises, and maintain the stability of U.S. financial system. After fierce debatesand bargains surrounding the proposals, the U.S. president finally signed the“Dodd-Frank Wall Street Reform and Consumer Protection Act”. This act hasimportant influences on the rebuilding of U.S. financial system and orders.Meanwhile, it also has meaningful implications for the financial regulations inother developed countries and emerging economies.This thesis gives a detailed explanation of the U.S. financial reform act.The thesis mainly consists of four parts: legislation background, legislationprocess, contents of the act, and evaluation. Combined with variousperspectives, the thesis evaluates the act based on profound analyses.The legislation background part explains the incentives and goals oflegislation after discussion of the defects of financial regulation system bothbefore and during the crisis. This act is a long-term strategy to deal with andprevent further crises, so more detailed discussions of the act are impossiblewithout first examining the defects of the previous financial regulation.In the legislation process part, based on the U.S. policy process framework,it straightens the legislation process of the act and analyzes in detail thepolitical issues, interests, and beliefs that influenced the final enactment of theact.The thesis summarized the main contents, as well as the existing problems,of the act. The act is characterized as the final product of bargaining of differentinterest groups.The evaluation of the act involves many aspects. First, the thesis gives outa general evaluation of the act from an economic perspective. Second, based onthe prior summarization of the act, the thesis analyzes some of the mostimportant aspects involved in the act. Finally, the thesis evaluates the act from both a macro and a micro level. The macro level concerns its impacts on globalfinancial structure and financial regulation system. The micro level concerns itsimpacts on U.S. financial market, regulation authorities, and related corporationbusinesses. After the above detailed analyses, the thesis provides a unitaryinterpretation of the Dodd-Frank Act.