Regulations are constantly being enforced on businesses to prevent backroom dealings to benefit a select few involved rather than the American population. This has been the case throughout United States history to keep the people’s best interests in control. The financial crisis of 2008 was devastating to the American economy and financial sector, and in the years following, regulations were set in place to prevent any future crises from occurring. One of these regulations was the Dodd-Frank Wall Street Reform and Consumer Protection Act which was designed to decrease risk in U.S. finance, and protect large banks and corporations from bankruptcy thus eliminating an economic disaster. It was signed into law by President Barack Obama on July 21, 2010. The idea of protecting these entities seems benevolent, but what does it cost those who feel the trickle-down effects of increasing governmental and corporate power? The Dodd-Frank regulation has large current and future implications on businesses and consumers due to the promises it has made to both. One of the ethical issues directly involved with the Dodd-Frank regulation is whether it can produce long-term, beneficial results …show more content…
Many rules involved transparency which were developed by the SEC to further improve the quality of investor protection. These stakeholders are reliant on the honesty of the SEC because its mandate is to protect investors’ interests. Another bureau was created to do the same for consumers. The Consumer Financial Protection Bureau (CFPB) was created in 2011, “to promote consumer protection, but questions regarding a lack of oversight and accountability have been raised,” (Lopez, 2016). A lack of regulation here could potentially hurt consumers. In its current state, Dodd-Frank is exempt from government oversight, and it is not required to follow the guidelines of the Office of Management and