A critical analysis of the Dodd-Frank Wall Street reform and consumer protection act

Abstract

This paper focuses on the Dodd-Frank Wall Street Reform and Consumer Protection Act which was passed into law in the United States on July 21, 2010 in response to the recent financial crisis. It particularly focuses on the parts of the bill related to the markets for structured financial products and credit ratings agencies. The paper reviews the issues that led to the crisis as well as the theory that helps to explain the causes of these issues. It then goes on to analyze the recently passed legislation in light of these issues and the relevant theory, and discusses the likely positive effects as well as the likely shortcomings of the different pieces of legislation.