Ropes & Gray Partners Break Out Key Aspects of Dodd-Frank Wall Street Reform and Consumer Protection Act
In the fourth of their continued series of articles on the financial reform bill, Ropes & Gray banking practice co-leaders Mark Nuccio and Alan Priest provide a review of the key elements of the bill and its evolution to its current state.
In the article published by Corporate Board Member, Nuccio and Priest write: "If passed without significant changes, the Federal Reserve will have reversed potentially serious chastisement and come out stronger, as have federal regulators as a group (the OTS demise notwithstanding). Wall Street’s wings have been clipped a little, but big banks are here to stay.”
The authors examine key elements from the 2300 page bill, including:
- Restrictions on federal bail outs to institutions;
- Creation of new federal bureaucracy – most notably, the Financial Stability Oversight Council and the Consumer Financial Protection Bureau;
- Federal Reserve Board retains jurisdiction over state-chartered banks and holding companies;
- Required SEC registration for hedge fund and private equity fund managers;
- Significant restrictions on bank investments in derivative instruments;
- An increase in federal deposit insurance from $100,000 to $250,000;
- Provisions for further transparency on executive compensation; and
- Increased federal oversight in matters of corporate governance.