Dodd-Frank Act

In 2009 President Obama called for major reforms as we were desperately trying to climb from the depths of the financial crisis, and we've achieved the vast majority of his goals. Congresswoman Maloney took a leadership role on enacting financial reform legislation as a conferee to the Dodd-Frank Wall Street Reform and Consumer Protection Act. This landmark legislation helped restore the economy and continues to protect Americans from unscrupulous behavior by improving transparency and accountability. It helped provide market stability so that more than 12 million private sector jobs could be created. The unemployment rate was cut in half, and our economy continues to grow in part because of the reforms we put in place. 

Brief Summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act

Years without accountability for Wall Street and big banks under Republican rule brought us the worst financial crisis since the Great Depression, cost us 8 million jobs, and wiped out the retirement security for tens of millions of Americans.

The most comprehensive and common sense reforms in generations restored responsibility and accountability to the financial system, and will empower consumers with information to make the best choices on their homes, credit cards, and savings for college and retirement. Wall Street Reform is key to creating a strong new foundation to grow the economy and create jobs.

HIGHLIGHTS OF THE LEGISLATION

Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and to protect them from hidden fees, abusive terms, and deceptive practices. 

Ends Too Big to Fail Bailouts: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.

Advance Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy. 

Transparency & Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive practices to go unnoticed and unregulated -- including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.

Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.

Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.

Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefits special interests at the expense of American families and businesses.

More on Dodd-Frank Act

Jun 8, 2017 Press Release

“Today, House Republicans, against the recommendations of consumer rights’ groups and those in the financial services industry, and without the support of a single Democrat, passed the Financial CHOICE Act. This shortsighted and misguided bill will roll back key protections Congress put in place after the financial crisis to prevent a repeat of events and will take us back to the regulatory Stone Age.

May 4, 2017 Press Release

WASHINGTON, DC – Congresswoman Carolyn B. Maloney (NY-12), Ranking Member on the House Financial Services Subcommittee on Capital Markets, Securities, and Investment, condemned Republican’s passage of the Financial CHOICE Act out of Committee today. The bill, should it become law, will repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act and roll back the important protections put in place after the financial crisis.

Apr 26, 2017 Press Release

WASHINGTON, DC – Congresswoman Carolyn B. Maloney (NY-12), Ranking Member on the House Financial Services Subcommittee on Capital Markets, Securities, and Investment, during today’s Committee on Financial Services full committee hearing, slammed the Republican-proposed Financial CHOICE Act which would repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act and roll back the important protections put in place after the financial crisis.

Feb 28, 2017 Press Release

 WASHINGTON, DC – Congresswoman Carolyn B. Maloney (NY-12), Ranking Member on the House Financial Services Committee’s Subcommittee on Capital Markets, Securities, and Investment, introduced an amendment to protect the Orderly Liquidation Authority of Dodd-Frank, which ensures that taxpayers don’t have to bailout failing financial institutions. The amendment was offered during the House Financial Service Committee’s consideration of its budget views and estimates. The Congresswoman released the following statement after offering the amendment.

Aug 29, 2016 In The News

A senior Democrat on the House Financial Services Committee is pressing regulators to share two years of market data they have collected in connection with the Volcker Rule, a provision of the Dodd-Frank Act intended to rein in banks’ risky trading and investments.

Aug 29, 2016 Press Release

Congresswoman Carolyn B. Maloney (NY-12), Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, today sent a letter to U.S. financial regulators asking for an update on the ongoing implementation of the Volcker Rule. In the letter to the Federal Reserve, Federal Deposit Insurance Corporation, Commodity Futures Trading Commission, Office of the Comptroller of the Currency, and the Securities and Exchange Commission, the Congresswoman requested “an update on the quantitative trading metrics that the agencies have been collecting” under the Volcker Rule.

Jul 21, 2016 Press Release

Marking the sixth anniversary of Dodd-Frank, Congresswoman Carolyn B. Maloney (NY-12), member of the Dodd-Frank conference committee, senior member of the House Financial Services Committee and Ranking Member of the Joint Economic Committee, released the following statement.

Jul 21, 2015 Press Release

WASHINGTON – Today Congresswoman Carolyn B. Maloney (D-NY), a senior member of the House Financial Services Committee, marked the five year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act was enacted in response to the 2008 financial crisis, which brought the American economy to the brink of another Great Depression.

Jun 30, 2010 Press Release

Thank you Chairman Frank for yielding, for your leadership and for presiding over the most open and transparent conference process in history.

The Dodd/Frank bill is landmark legislation which will protect consumers and investors, while allowing our financial services industry to continue financing the creativity and innovation, which has, even in these difficult times, made the American economy the envy of the world.
 

Apr 29, 2008 Press Release

WASHINGTON, DC – Congresswoman Carolyn B. Maloney (D-NY), Chair of the House Financial Institutions and Consumer Credit Subcommittee and author of “The Credit Cardholders’ Bill of Rights” (H.R 5244), today applauded Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, for introducing “The Credit Card Accountability, Responsibility and Disclosure Act” (the C.A.R.D. Act).