Dodd Frank Flashcards
1
Q
Bus. Law
What is considered the biggest change to financial regulation since the Great Depression of the 1930s?
A
The Dodd-Frank Wall Street Reform Act of 2010
2
Q
Bus. Law
What is the goal of the Volcker Rule?
A
Banking Institutions maintain healthy capitalization ratios
3
Q
Bus. Law
How does the Volcker Rule limit banking institutions?
A
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)
4
Q
Bus. Law
What does the Volcker Rule require banking institutions to disclose?
A
Relationships with hedge funds must be fully disclosed to regulators
