Known officially as the Dodd-Frank Wall Street Reform and Consumer Protection Act, the new law is the most significant regulatory overhaul of the financial system since the Depression ended in the 1930s. Signed into law in July 2010, it aims to end bailouts forced on taxpayers by financial institutions deemed “too big to fail” and to protect consumers. Included in the legislation is a powerful, independent consumer-protection bureau, an early-warning system for financial groups deemed too big to fail, new oversight of credit agencies, and lower fees on debit-card charges. It also directs much of the $600 trillion over-the-counter derivatives trade through clearinghouses and exchanges.
The law is especially vulnerable to deep cuts in agency budgets, which Republicans are predicting for the next Congress.
Kevin Lamarque/Reuters
