Dodd–Frank Wall Street Reform and Consumer Protection Act (2010)

1) Link to the Text of the Act
Read the statute (12 U.S.C. § 5301 et seq.)

2) Why It Was Done
Enacted after the 2008 financial crisis, Dodd–Frank aimed to reduce systemic risk, increase transparency, and protect consumers from abusive financial practices.

3) Pre-existing Law or Constitutional Rights
The Glass–Steagall Act (1933) had separated commercial and investment banking but was repealed in 1999. Existing securities and banking laws failed to prevent the 2008 crisis. Dodd–Frank created a modernized regulatory framework.

4) Overreach or Proper Role?
Supporters say it provided critical safeguards against “too big to fail.” Critics argue it created excessive regulatory burdens that constrained lending and economic growth.

5) Who or What It Controls

• Banks and financial institutions (capital requirements, stress tests)
• Derivatives markets (new clearing and transparency rules)
• Mortgage lenders and credit agencies (consumer protections)
• Consumers (via new regulatory rights and enforcement)

6) Key Sections / Citations

• 12 U.S.C. § 5491 (establishes the Consumer Financial Protection Bureau – CFPB)
• 12 U.S.C. § 5365 (enhanced supervision of large financial institutions)
• 12 U.S.C. § 5321 (Financial Stability Oversight Council – FSOC)
• 15 U.S.C. § 78o–10 (registration of security-based swap dealers)

7) Recent Changes or Live Controversies

• Several provisions rolled back by the Economic Growth, Regulatory Relief, and Consumer Protection Act (2018)
• Ongoing Supreme Court litigation over CFPB’s structure and funding
• Continuing debates on regulating fintech, cryptocurrency, and systemic risk

8) Official Sources

• U.S. Code – Title 12, Chapter 53
• Consumer Financial Protection Bureau (CFPB)
• SEC – Dodd–Frank Act

• Finance
• Banks
• Securities
• Consumers
• Regulation