Dodd-Frank Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Comprehensive US financial reform legislation enacted in response to the 2008 financial crisis.
Dodd-Frank introduced sweeping changes to US financial regulation including the Volcker Rule restricting proprietary trading, creation of the Consumer Financial Protection Bureau (CFPB), and enhanced oversight of systemically important financial institutions. The Act requires central clearing of standardized derivatives, mandatory trading on swap execution facilities, and comprehensive reporting to swap data repositories. It established the Financial Stability Oversight Council (FSOC) to monitor systemic risk and created orderly liquidation authority for large financial institutions. Dodd-Frank includes stress testing requirements, enhanced capital and liquidity standards, and restrictions on banks' derivative trading activities. The legislation significantly expanded regulatory oversight and compliance requirements across the financial services industry.
Example
Volcker Rule compliance, CCAR stress testing, SIFI designation criteria