Biz Law - Dodd Frank

Question 1

What is considered the biggest change to financial regulation since the Great Depression of the 1930s?

Answer 1

The Dodd-Frank Wall Street Reform Act of 2010

Question 2

What is the goal of the Volcker Rule?

Answer 2

Banking Institutions maintain healthy capitalization ratios

Question 3

How does the Volcker Rule limit banking institutions?

Answer 3

Limits banking institutions from owning more than 3% of a hedge fund’s total ownership interest

Limits banking institutions from owning interests in hedge funds that exceed 3% of their Tier 1 Capital (Common Stock + Retained Earnings + non-redeemable; non-cumulative Preferred Stock)

Question 4

What does the Volcker Rule require banking institutions to disclose?

Answer 4

Relationships with hedge funds must be fully disclosed to regulators