Dodd Frank Flashcards
Business Law - CH8
What is considered the biggest change to financial regulation since the Great Depression of the 1930s?
The Dodd-Frank Wall Street Reform Act of 2010
Business Law - CH8
What is the goal of the Volcker Rule?
Banking Institutions maintain healthy capitalization ratios
Business Law - CH8
How does the Volcker Rule limit banking institutions?
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)
Business Law - CH8
What does the Volcker Rule require banking institutions to disclose?
Relationships with hedge funds must be fully disclosed to regulators
