Chapter 1 - Dodd Frank

Question 1

What were the overarching objectives of Dodd Frank?

Answer 1

1. To close the loopholes that led to the financial crisis.
2. To reform executive remuneration and corporate governance.
3. To provide early warning capability for the US economy.
4. Establish rigorous standards to protect the US economy, consumers, investors and businesses.
5. End taxpayer funded bailouts.

Question 2

As part of Dodd Frank, how were derivatives trades made more transparent?

Answer 2

They were brought onto exchanges.

Question 3

How did Dodd Frank impact credit rating agencies?

Answer 3

They were new tighter regulations and accounting standards.

Question 4

Which federal agency was the statute and agency eliminated by Dodd Frank?

Answer 4

The national thrift charter and the Office for Thrift Supervision

Question 5

Which 2 agencies replaced the agency eliminated by Dodd Frank?

Answer 5

• Office for Financial Research (OFR)

- Financial Stability Oversight Council (FSOC)

Question 6

Which agency was created to provide consumer protection?

Answer 6

Bureau of Consumer Financial Protection

Question 7

How often do the financial agencies created by Dodd Frank have to report to Congress?

Answer 7

Annually or biannually.

Question 8

What was the loophole closed by Dodd Frank?

Answer 8

Individuals not holding themselves out as investment advisors but having 15 of fewer clients in the last 12 month period, did not have to register with the SEC. They now have to.

Question 9

What were the provisions in Dodd Frank that allowed the orderly winding down of firms?

Answer 9

1. Resolution regime complementing the existing Federal Deposit Insurance Corporation (FDIC).
2. US Treasury could ask the Federal Reserve to extend lines of credit in unusual or exigent circumstances.