In The News

Ropes & Gray Partners Break Out Key Aspects of Dodd-Frank Wall Street Reform and Consumer Protection Act

Practices: Banking

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.
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