What is Dodd Frank?

Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Dodd-Frank”
The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as simply "Dodd-Frank", is supposed to lower risk in various parts of the U.S. financial system. It is named after U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank because of their significant involvement in the act’s creation and passage.
Dodd-Frank established new government agencies such as the Financial Stability Oversight Council and Orderly Liquidation Authority, which monitors the performance of companies deemed “too big to fail” in order to prevent a widespread economic collapse.
The new Orderly Liquidation Fund provides money to assist with the liquidation of financial companies that have been placed in receivership because of their financial weakness. Additionally, the council can break up large banks that may pose a risk to the financial system because of their size. It can also quickly and neatly liquidate or restructure firms it deems too financially weak. Similarly, the new Federal Insurance Office identifies and monitors insurance companies that may pose a systemic risk.
By Barry Norman, Investors Trading Academy

[@skeetmouse]

Thanks for the explanation.

[@toodriveuwild]

It conveniently left out the part about how banks can bail themselves out using our money.

[@Jainibaba]

nutshell

[@warrbarrt]

Yeah...I think maybe we should get rid of this.?

[@redstarfarms2778]

Warren Barrett Get rid of it ? That's horrible. it keeps banks and super Rich companies from controlling the market so that if they fail the entire market won't collapse. It's good for big banks but Horrible for little investors like me