Dodd Frank

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Dodd-Frank
Introduction
In the year 2008, there was a serious financial crisis in the US, which led to massive unemployment rates and loss of property worth trillions. The main cause of the crisis was the broken nature of the financial system in the US. The financial regulatory system was antiquated, fragmented and made it possible for large portions of the financial system to continue operating with any oversight in place. Lenders took advantage of the situation through the use of fees that was hidden.
The Dodd-Frank Act
The Dodd-Frank Act was one of the best reforms in the financial sector because it was comprehensive in nature after the Glass-Steagall Act. Dodd-Frank Act was required because Glass-Steagall had been removed in the year 1999 by the then Act referred to as the Gramm-Leach-Bliley Act. The removal of the Act was one general cause for the financial crisis in the US in the Year 2008. After the deregulation of the Act, there was turmoil in the financial sector and the economy as a whole.
Just like the Glass-Steagall Act, the Dodd-Frank Act was instituted to ensure overall regulation of all the financial markets and also ensure minimal occurrences of another economic crisis in the US. The Dodd-Frank Act came into existence after two individual legislators who formed it. The Act was formed by Senator Dodd Chris, who introduced the Act in the year 2010, and brought it forward on May 20 the same year. The revision of the bill was done by Frank Barney, and it was later approved on June 30, 2010.

The bill was later signed into law by President Obama on July 21, the same year. The signing made the Dodd-Frank Wall Street Reform Act become law (US Government 2).
How the Dodd-Frank Act could have helped prevent the Credit Crisis in the US in 2008.
To ensure the zero occurrences of the 2008 crisis in the US, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which became law. This was the most important Act among other reforms that had been passed before because it had the potential of preventing the credit crisis of 2008 from happening. The Act was in a position of preventing the excessive risk-taking nature in the financial sector during this period. The excessive risk taking was one major factor that led to the US financial crisis in the year 2008 (Dimitrov 505).
The law is efficient and stringent as it provides protections to all families in the US, and also allows the creation of a watchdog to prevent lenders and mortgage companies from exploiting individual customers. The new rules by the Act provide stable and safer financial systems, which are important in a robust economy. They also ensure increased job creating and economic growth within shorter periods.
The Act has different measures that are supposed to safeguard individuals and corporations from exploitation. It also has corporate governance regulations, reforms for compensations, hedge fund regulations, regulations for derivatives that are over the counter and many other regulations for credit agencies.
Conclusion
The 2008 crisis in the US could have been stopped by the Dodd-Frank Act, which is comprehensive in scope. It provides different changes that need to be affected by the federal financial system and also other substantive requirements that are beneficial to all market participants including those outside the financial sector. The Act was in a position to eliminate any chances of 2008, crisis from happening.

Works Cited
Dimitrov, Valentin, Darius Palia, and Leo Tang. “Impact of the Dodd-Frank Act on credit ratings.” Journal of Financial Economics 115.3 (2015): 505-520.
US Government. “Dodd-Frank Wall Street Reform and Consumer Protection Act.” the Senate and House of Representatives of the United States of America in Congress 2010 1-848.