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Some of the provisions in the Dodd-Frank reform were already present in the pre-existent legislations, and the new law has focused on their reinforcement and strengthening. Such is for instance the case of the provisions regarding the accountability and transparency of the financial operations of the economic agents. Aside from these however, the Dodd-Frank reform also introduces new elements in the supervision of the fiscal sector. These refer mainly to the following:
A massive restructuring of the regulatory system
The focus on merging some of the regulatory agencies, while others would be eliminated all together
The focus on the streamlining of the control and regulation
The enforcement of standards for corporate governance and the pay of managerial executives
The elimination of the possibility for bailouts
The requirements for some of the regulatory agencies (both old ones and new ones) to report to the Congress one or twice a year
The enhanced needs of financial agents, including...
Its primary scope is that of preventing future economic crises from occurring within the United States. Also, in the cases of economic problems, the Dodd-Frank act strives to protect the customers, the investors and the taxpayers. The reform focuses mostly on ethical behavior, accountability and transparency and it impacts all actors in the regulatory and fiscal sectors.
References:
2008, Treasury's summary of regulatory proposal, The New York Times, http://www.nytimes.com/2008/03/29/business/29regulate-text.html?pagewanted=print last accessed on October 28, 2011
Brief summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act
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