The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 is the most far-reaching overhaul of financial reform since the Great Depression.
Named for its co-sponsors, Sen. Chris Dodd, a former lawmaker from Connecticut who now heads the Motion Picture Association of America, and Rep. Barney Frank of Massachusetts, the act was crafted to address concerns that were highlighted during the financial crisis of 2008.
Among the Dodd-Frank changes are increased oversight and supervision of financial institutions, a new resolution procedure for large financial companies, stringent regulatory capital requirements and changes to corporate governance and executive compensation practices.
The act also created the Consumer Financial Protection Bureau, which began operation in 2012. This new agency is responsible for, in part, implementing and enforcing compliance with consumer financial laws. In addition, the bureau also promotes increased consumer financial education.