The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) represents the single most important and comprehensive piece of financial system reform legislation since the myriad reforms following the Great Depression. With the primary goal to restore responsibility and accountability in our financial system to give Americans confidence that there is a system in place that works for and protects them, the Dodd-Frank Act will have broad impact on the financial services industry for years to come. The Act includes significant reforms and refinements to modernize existing laws to address emerging risks and issues in our evolving financial system. It also establishes entirely new regulatory regimes, including in areas such as systemic risk regulation, over-the-counter (OTC) derivatives market oversight, and Federal consumer protection.
All participants of our financial services and banking industries are affected with some industry segments and firms substantially impacted by the Dodd-Frank Act reforms. The spectrum of affected participants includes banks, thrifts, depository institution holding companies, mortgage lenders, insurance companies, industrial loan companies, broker-dealers and other securities and investment advisory firms, private equity and hedge funds, consumers, and numerous federal agencies and the federal regulatory structure.
This StayCurrent bulletin addresses the impact, issues and concerns present with implementing the so-called Volcker Rule, set forth at section 619 of the Dodd-Frank Act.