In response to the financial crisis, the Dodd Frank Act was signed by the US Administration in 2010. By affecting all the federal financial regulatory agencies and almost every part of the financial services industry, it reshaped the entire financial regulation in the US.
Its main objective is to fight systemic risk by identifying, evaluating and managing threats to the stability of the American financial system.
It has therefore created two new agencies, which are the Financial Stability Oversight Council and the Office of Financial Research. The authority of the Federal Reserve Board of Directors has been reinforced. Continue reading