Reform and Protection – On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law ("Dodd-Frank" or the "Act"). At once Dodd-Frank was hailed by some as fulfillment of a promise, a promise to reform the financial system in order to promote financial stability and protect consumers from those that might again use their dreams to entice them into taking on obligations that then quickly overtake them. However, like many regulatory efforts, Dodd-Frank leaves a number of details to be resolved in the future, through the adoption of regulations or the exercise of discretion by those at the helm when the next crisis begins to build on the horizon. So in many ways, the enactment of Dodd-Frank fulfills a promise by making one. A promise that when the next economic boom shows signs of a bubble, regulators who see risk despite a flood of rewards will be empowered to act and more importantly, will act prudently.
In the following pages, we have sought to highlight some of the more significant provisions of the Act. With this effort, we are not seeking to provide a compliance guide, but rather identify those sections that might warrant your attention as implementing regulations are developed and implementation deadlines approach. This is one in a series of client advisories addressing Dodd-Frank and will be followed by a number of more narrowly focused advisories in the coming weeks and as implementing regulations bring clarity to this wide ranging piece of legislation.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
