A Critical Survey of Dodd-Frank and What is Needed for Europe
WORKING PAPER
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In the aftermath of the 2007-2008 financial crisis, President Obama signed the Dodd–Frank Act into law on July 21, 2010.
The law was no less than a regulatory overhaul targeting the securitization and mortgage industries. This paper reviews the major provisions of Dodd-Frank, focusing on the monitoring of systemic risk, the limitation on proprietary trading, the regulation of the hedge fund industry, of credit rating agencies, the rules applicable to derivative trading, as well as the critical role of the large investment firms for the implementation of the new regulatory efforts. The paper compares these provisions with the recent regulatory changes in the EU and critically assesses the potential impact of - and resistance to - the Dodd-Frank Act.