Dodd-Frank

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal statute in the United States that was signed into law by President Barack Obama on July 21, 2010 as a response to the late 2000s recession.

Named after Senator Christopher J. Dodd and U.S. Representative Barney Frank, the legislation increased government oversight of trading in complex financial instruments such as derivatives. The purpose of the legislation is to preventing another collapse of a major financial institution. It does this by restricting the types of proprietary trading activities that financial institutions will be allowed to practice.