On July 21, 2010, the financial world marked the fifth anniversary of the passage into law of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA). After the global financial crisis hit in 2008, politicians and regulators around the world were united in ensuring future banking crises would not require taxpayers’ money to avoid economic contagion. The DFA was not designed to prevent the next financial crisis, the goal was to soften the blow.
The slow progress of regulators in implementing all of the regulations required by the Act has been a common complaint, but critics are also pointing out the many unintended consequences of certain provisions. In this article, we will discuss the controversy that surrounds the DFA.