In the process of reforming the financial markets–which spun out of control, wreaking havoc on our economy and the lives of millions of Americans–Congress was unable to generate a solution that is more than a patch for the holes in the existing flawed model. It did, however, manage to spare the insurance industry in many ways.
The Dodd-Frank Act, H.R. 4173, is certainly substantial, adding more than 2,000 pages of new legislation and amendments to existing law. It also sounds impressive, creating the Consumer Financial Protection Bureau and a Resolution Authority to determine “systemic risk” and break up troubled financial institutions.
The bill enhances bank capital standards and limits a bank's ability to trade for its own account, invest in hedge funds and trade derivatives unless on open exchanges–although these three limitations were greatly diminished in the rush to arrive at a compromise bill.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
