The Dodd Frank Act

Discuss, Analyze and Assess the Dodd Frank Act (positive/negative)

The Dodd Frank Act provides protection to businesses, or any company and the consumers. The Act has both positive and negative influences on business compensation. It is also responsible for compensation of the company’s committee that is charged with implementing the act (Virginia 78). According to Warren (56), the Dodd Frank Act has the main aim to provide enough protection to the customers, establish a great economic background to enhance job opportunities, and ensure extra prevention of another financial breakdown (Skeel 89). Failure to provide a good accountability for the Dodd Frank Act leads to financial crisis. There may also be loss of a good number of job opportunities, and decline in business activities. All these hardships cause a crisis that needs confident action. For economic growth in the country, there is a need to bring back duties and accountability in the financial system (Warren 24).

The Dodd Frank Act has a vision of ensuring that consumers are protected and have the authority to demand for compensation when their rights are infringed (Orice 90). This implies that organizations have the duty to provide consumers with clear, right data for shopping for financial products (Sim 46). Therefore, Dodd Frank Act has a purpose of protecting consumers from all sorts of deceptive activities, hidden fees and abusive language.

The Act has a responsibility of ensuring that there are advanced technological warning systems. These systems are to assess and evaluate any risks that may be posed by large and complicated organizations before they pose a threat to the economy’s stability. In addition, it assists in reducing issues that encourage risky and abusive activities to pass unrecognized and unregulated (Cooley 120). The Act provides different businesses and investors with protection. This is achieved by providing harsh regulations that encourage transparency and accountability from credit rating organizations. The Act has also formed a good number of requirements on public organizations in relation to executive compensation that keep on changing the landscape for compensation to the staff and the legal system (Gregory 23).

The negative effects associated with this Act include the fact that it gives strenuous work to its regulators who have to define every aspect of its implementation (Adjemian 67). It is also causes conflicts in the formulation of rules due to its jurisdiction.

However, although it has negative financial implications, “the act is a very necessary way to move forward in financial regulations and acts as the foundation for future rules and legislative enhancements” (Anand 56). This Act also helps in developing a framework that places struggling banks in a better position. For instance, it permits any failing financial institution to reorganize its assets or dissolve its organization entirely.

The Dodd Frank Act is a legal degree that was pronounced by President Barack Obama in 2010 as a national statute to regulate businesses. It was developed to enhance stability in the financial sector of the United States through making improvements in transparency and accountability in the financial sector. The Act calls for extreme standards and supervision in order to provide maximum protection to the economy, consumers, businesses, and investors. It also establishes rules and regulations that reduce problems that could cause an economic recession. However, the Act has some negative effects such a heavy workload to all those tasked with its implementation, and a potential conflict of interest with other financial regulations. However, it is good for businesses to adhere to this regulation because the Act was established to represent the way in which the financial markets of the Unites States of America will function in the future.

Conclusion

A crisis should never be wasted and in that regard the Dodd Frank Act seeks to prevent, mitigate and eventually compensate if the mentioned occurs. Additionally employments levels are sustained if not increased by the solid financial structure assured by the act. As part of the structure data and information in various financial assets is availed to the consumer to enhance more prudent decision-making. The creation of technological alerts targeting colossal and complex financial organizations that if unstable poses economic instability. Regardless of the bulk and strenuous work, that regulators are faced with the act is indeed timely in preventing financial meltdowns.

 

Works Cited

Adjemian, Michael. Dodd-Frank Wall Street Reform and Consumer Protection Act (DF): Changes to the Regulation of Derivatives and Their Impact on Agribusiness. Cape Newagen, RD: DIANE Publishing, 2011. Print.

Anand, Sanjay. Essentials of the Dodd-Frank Act. Chicago: John Wiley and Sons, 2011. Print.

Cooley, Thomas. Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance. Chicago: John Wiley and Sons, 2010. Print.

Gregory, Wilson. Managing to the New Regulatory Reality: Doing Business under the Dodd-Frank Act. Chicago: John Wiley and Sons, 2006. Print.

Orice, Williams. Securities and Exchange Commission (SEC): Action Needed to Improve Rating Agency Registration Program and Performance Related Disclosures. Cape Newagen RD: DIANE Publishing, 2008. Print.

Sim, Sega. Corporate Value of Enterprise Risk Management: The Next Step in Business Management. Chicago: John Wiley and Sons, 2011. Print.

Skeel, David. The New Financial Deal: Understanding the Dodd-Frank Act and Its (Unintended) Consequences. Chicago: John Wiley and Sons, 2010. Print.

Warren, Elizabeth. Global Context and International Effects of the TARP. Cape Newagen, RD: DIANE Publishing, 2009. Print.

Warren, Elizabeth. Global Context and International Effects of the TARP. Cape Newagen, RD: DIANE Publishing, 1990. Print.

Virginia, Morris. Guide to Money. New York, NY: Lightbulb Press, Inc., 2010. Print.

 

Last Completed Projects

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.

[order_calculator]