How Did The Dodd Frank Act Affect The Economy

The Dodd-Frank Wall Street Reform and Consumer Protection Act was the federal government’s reaction to the financial crisis of 2008. The Dodd-Frank act symbolized the government’s regulatory stamp on the banks in the United States . This regulation from the Dodd-Frank Act set the goal to lower dependency on the bank federally by setting up regulations and tampering with companies that are deemed “Too Big to Fail”. Before the enactment of the Dodd Frank act, it took many obstacles to produce the content provided which sparked from the issue at hand with the financial downward spiral and the decisions as well as actions from overseers such as: the Secretary of the Treasury Hank Paulson and the presiding president George Bush. Two men emerged

The Secretary of the Treasury Hank Paulson was the man in the eye of the storm in charge of cleaning up the banks mess during the financial crisis of 2008. The beginning of the financial crisis came with the fallout of Lehman Brothers that marked one of the largest bankruptcy in American history. The Lehman Brothers bankruptcy then was proceeded with Countrywide Insurance being bailed out by Bank of America, and the enlightenment of the poor mortgage portfolios of Merrill Lynch, Morgan Stanley, and Citibank . Hank Paulson was in charge of dealing with and worked with individuals such as: Ben Bernanke the Federal Reserve Chairman and Timothy Geithner to propose a way to stabilize the American financial woes. The stabilization came from a 700 billion dollar legislation pushed by Hank Paulson. The scrutiny of this 700 billion dollar packaged plan came from the investments to save American International Group or AIG from bankruptcy , which held many society insurance plans that included: pension plans for teachers, life insurance, and 401k plans. The opponents came from both sides of the political spectrum when the 700 billion dollar bailout packaged and sent through Congress. Congress feared as well as questioned why the American taxpayers should be burdened with the saving of Wall Street executives who

The relegation of the banking and housing markets became a more efficient resolution from overseers of the economic crisis of 2008 like Secretary of the Treasury Henry Paulson. The Democrats during the economic crisis saw the relegation of the banks through government agencies as vital to fixing the economic crisis. The Democrats showed their viewpoint on the solution with The Dodd-Frank Act. The Dodd-Frank Wall Street Reform and Consumer Protection Act was co-authored by Barney Frank and Christopher Dodd. Barney Frank was from Massachusetts and served in the House of Representatives since 1981 until 2013. Barney Frank was the leading Democrat in the House Financial Services Committee since 2001 and became the Chairman in 2007 . Barney Frank as Chairman of the House of Financial Service committee opposed the Federal Reserve System regulation strengths. Frank was scrutinized by his contributions to Fannie Mae and Freddie Mac, which was one of the key organizations that led to the banking crisis. Franks Chairman role also put him in the middle of the mortgage crisis, specifically with the bailout problems. Barney Frank to combat the mortgage crisis supported the passing of bills and acts such as; Credit Cardholders’ Bill of Rights Act, the American Housing Rescue and Foreclosure Prevention Act, the refinancing program of 2007 that helped