Welcome to the Investors Trading Academy talking
glossary of financial terms and events.
Our word of the day is “Dodd-Frank”
The term Dodd-Frank refers to a comprehensive
and complicated piece of financial regulation
born out of the Great Recession of 2008.
The full name of the bill is the Dodd-Frank
Wall Street Reform and Consumer Protection
Act, but it is better known and most often
referred to as Dodd-Frank.
In simple terms, Dodd-Frank is a law that
places major regulations on the financial
industry.
It grew out of the Great Recession with the
intention of preventing another collapse of
a major financial institution like Lehman
Brothers.
Dodd-Frank is also geared toward protecting
consumers with rules like keeping borrowers
from abusive lending and mortgage practices
by banks.
It became the law of the land in 2010 and
was named after Senator Christopher J. Dodd
and U.S. Representative Barney Frank, who
were the sponsors of the legislation.
But not all of the provisions are in place
and some rules are subject to change, as we'll
see.
The bill contains some 16 major areas of reform
and contains hundreds of pages, but we will
focus here on what are considered the major
rules of regulation.
