Dodd–Frank Wall Street Reform and Consumer Protection Act

• Date: May 16, 2011
• Source: http://www.cftc.gov/

This act promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘‘too big to fail’’, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.

The Dodd-Frank law tries to restructure US regulation to force regulators to consider institutions in the light of what they do - rather than what they nominally are. So AIG would be considered as a financial institution selling risky credit default swaps - rather than just an insurer. Plus, an asset bubble should be considered not in isolation but in terms of the impact it could have in other asset classes.

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