Chapter 8 Section 8: Dodd-Frank Act of 2010

Question 1

What is the Dodd-Frank Act?

Answer 1

Promote the financial stability of the US by improving accountability and transparency, ending the idea of “too big to fail,” ending bailouts and protecting consumers from abusive financial services practices

Question 2

What does Title 1 of the Dodd-Frank Act cover?

Answer 2

The financial stability act - creates a new federal agency called the financial stability oversight council

Question 3

What does the FSOC do?

Answer 3

Identifying risks to financial stability
Eliminating expectations that the gov’t will shield us from losses
Responding to threats to financial stability

Question 4

What is the money threshold for who has to report to the FSOC?

Answer 4

$50 billion

Question 5

What does Title 2 of the Dodd-Frank Act cover?

Answer 5

Bankruptcy of Financial Institutions - provide authority to liquidate ailing financial companies that pose a significant risk to the financial stability in a manner that mitigates risk.

Question 6

What is the orderly liquidation fund?

Answer 6

Covers a financial company’s liquidation not previously covered by the FDIC or the SIPC

Question 7

Who is the primary liquidator of financial institutions?

Answer 7

FDIC

Question 8

What is the Volker rule?

Answer 8

3% limit in risky assets

Question 9

What is Title VII of the Dodd Frank Act?

Answer 9

Wall Street and Transparency and Accountability Act

Question 10

What is Title IX of the Dodd Frank Act?

Answer 10

Investor Protection and Securities Reform Act of 2010