Policy Issues
Summary of the Law
TITLE 1: Financial Stability
Creates Financial Stability Oversight Council and Office of Financial Research, imposes heightened Fed regulation on large bank holding companies and “systemically risky” non bank financial companies.
TITLE II: Orderly Liquidation Authority
Establishes a liquidation fund supported by future assessments on large banks, and requires submission of ”living wills” detailing how to unwind failing non bank financial companies.
TITLE III: Transfer of Powers to the Comptroller of the Currency, the Corporation and the Board of Governors
Abolishes the OTS and transfers their functions, changes the FDIC assessment base, and permits assessment discrimination based on size.
TITLE IV: Regulation of Advisors to Hedge Funds and Others
Requires registration and record keeping requirements for private advisers, with limited exemptions.
TITLE V: Insurance
Establishes the Federal Insurance Office (FIO) and maintains state regulation of insurance.
TITLE VI: Improvement to Regulation of Bank and Savings Association Holding Companies and Depository Institutions
Expands Fed authority to regulate subsidiaries of bank holding companies by repealing “Fed Lite” provisions; sets a 10% concentration limit for bank mergers; and creates the “Volcker Rule” prohibiting banks from proprietary trading, with notable exceptions.
TITLE VII: Wall Street Transparency and Accountability
Introduces numerous and significant requirements for derivatives, including mandatory clearing of non-exempt OTC derivatives and limitations on bank involvement in derivative activities.
TITLE VIII: Payment, Clearing and Settlement Supervision
Authorizes the Financial Stability Oversight Council to designate financial market utilities or payment, clearing, and settlement activities as systemically important.
ITLE IX: Investor Protection and Improvement to the Regulation of Securities
Imposes risk retention requirements, corporate governance standards, executive compensation requirements, and a study on broker-dealer fiduciary duties.
TITLE X: Bureau of Consumer Financial Protection
Establishes the Consumer Financial Protection Bureau, with consumer regulatory authorities consolidated from other banking agencies. Also introduces interchange fee restrictions for debit card payments.
TITLE XI: Federal Reserve System Provisions
Restricts the Fed’s emergency lending powers and debt guarantees while further authorizing a one time, GAO conducted audit of the Fed.
TITLE XII: Improving Access to Mainstream Financial Institutions
Encourages initiatives to provide financial products and services for Americans with low and moderate incomes.
TITLE XIII: Pay it Back Act
Suspends TARP funding for all funding not initiated before June 24, 2010 and the minimum ratio of reserves to insured deposits must be 1.35 percent by September 20, 2020.
TITLE XIV: Mortgage Reform and Anti-Preditory Lending Act
Provides consumer protection through reform on mortgage issuance, mortgage related fees, and various mortgage practices.
TITLE XV: Miscellaneous Provisions
Addresses bailouts of foreign governments and disclosures for columbite-tantalite, cassiterite, gold or wolframite from the Democratic Republic of Congo.
