Dodd-Frank Act Vs CFPB Failure

If they lose, then they may have to pay a large sum to the other side. This is far more expensive than cases when just one person is suing the company.

The Trump administration is closely monitoring the roles of independent regulatory agencies since the president signed the executive order to reduce the regulatory burdens created by Dodd-Frank. Since many people consider the CFPB an independent agency, several student loan debt holders are left to wonder if a federal agency will exist to help protect them from predatory lending practices.

First, "Corporate cases should not be resolved without a clear plan to resolve related individual cases before the status of limitation expires and declinations to individuals in such cases must be memorialized" (Yates 6). To fulfill this requirement, when a corporation is working toward closure or to resolve a case, the company needs to be accompanied by a proper and responsive plan for the prosecution of alleged engaged employees or an explanation for a declination of prosecution. Second, "Absent extraordinary circumstances, no corporate resolution will provide protection from criminal or civil liability for any individuals" (Yates 5). Under this step, the Department of Justice would preserve its ability to pursue individuals when reaching a settlement with the corporation. It will no longer allow a corporation to shield its employees from prosecution by entering a resolution. Thus, due to these two key steps, I believe corporations will work with federal prosecutors in a proactive approach to identify all the related information of the alleged misconduct and the responsible

The Dodd-Frank Act was enacted to deal with the various problems occurred in the financial crisis. The paramount reason I choose this law is it has brought the most significant changes in the federal financial regulation since the regulatory reform that followed the Great Depression. (Damian & Lucchetti, 2010)

The CB uses open market operations to buy and sell securities as a means of implementing their monetary policies. They also used the open market operations as a way to control the liquidity of available money by influencing the short term interest and the supply of base money; therefore as a result controlling the supply of money. They also set the target rate for the feds and setting the discount rate at which for member banks to lend money to each other. The Feds also evaluate the bank mergers and also implements foreign exchange policy on behalf of US government and the

the causes that led to the 2008 crisis. They view Dodd-Frank as a comprehensive and powerful

ESSENCE OF THE STORY: The federal appeals-court recently made a ruling on PHH v. CFPB that would allow for Congress to take some of the Presidents power out of his/her scope. The court’s ruling has drawn criticism for numerous reasons but the original controversy stems back to 2008. In 2008 Congress established the Consumer Financial Protection Bureau which gave the agency the power to regulate consumer activity in the U.S.

As president of the United States, the public often believes that the nation’s leader can control the economy. However, while the president may have some influence over the economy, having control over the economy is far from truth. In fact, more often than not a president’s influence over the economy is more subtle and difficult to measure until years after the president has left office. The president is given the responsibility of appointing members of the Federal Reserve Board who are subsequently approved by the Senate. The Federal Reserve Board is responsible for much of the monetary policy which governs the central banking system if the United States controlling interest rates, the money supply, and overseeing the Nation’s banking system

There are twelve regional banks all throughout the United States. Some locations include Kansas City, St. Louis, Atlanta, and New York. New York is the biggest of the banks and is the only bank responsible for handling gold. The Federal Reserve Banks are not only public and but its part private as well. “They are charted federally, and they are private, nonprofit organizations owned by commercial banks within their district” (Cecchetti & Schoenholtz, 2015, pg. 424). Since the banks are both private and public, their own leaders from each side monitor them. Each bank has a board of directors made up of nine people. Of the nine members, only the board of governors can vote on three members. The other six are picked to represent commercial banks and the remaining three represent the public’s interest. This is done so each of the members represents different groups, but all have want economic stability. Each of the banks also has a president that elected by members of the board. The term of each president is only five years. The president is in charge of many things but one major job is to make sure the responsibilities of the bank are performed. The Federal Reserve is responsible for being the government’s bank and the banker’s bank. For the government, the banks purposes are to create money and destroy old, damaged money, managing the treasury’s bank account as well keeping track of what its

In the past, the ruling financial systems, such as agencies and laws, led to certain areas of the market without regulation. One of the areas, lacking regulation, was the protection of consumers from aggressive or “bad” financial products. In this sense, Title X of the Dodd-Franck Act creates a new regulatory agency, the CFPB, whose mandate and mission is

The CFPB doesn’t want to let the states do their jobs, even when they are doing good work, like in Florida. It wants to impose a one-size-fits-all mandate that gives its bureaucrats ALL the control. In essence, the agency is saying with its newest regulatory onslaught that it will trust a middle class American to take out a credit card with a monthly interest fee between 12 and 18 percent but must regulate the working poor and possibly deny them the right to take out a short-term loan secured by their next pay check with an interest rate around 15 percent. Seems rather arbitrary and nanny state like,

The Federal Reserve Bank has done an adequate job over the past decade by maintaining exchange rates and steadily progressing. In addition, the organization has attempted to provide consumers with financial resources for making better decisions. For example, in response to the Recession of 2007-2009, the Federal Reserve Bank oversees the Bureau of Consumer Financial Protection (CFPB)—an independent bureau within the Fed to help give consumers the information they need to make financial decisions (Koba, 2015).

I believe that many cases dealing with forced arbitration work in favor of the large corporations, rather than the employees or consumers with less money and power. Arbitrators are not obligated to follow the rules normally associated with civil procedure. Decisions can be made based on what they believe to be fair, rather than what the law would direct. If the employee or consumer disagrees with the result, they may be stuck with the decision and not be able to bring the claim to court. Also, arbitration costs have risen over the years and are now significantly higher than filing a lawsuit.

Civil lawsuits against corporations can vary. They can be against branding, a contractual basis and even labor/human rights. In 1998, Marc Kasky filed suit

The Webster Industries case is about a company that has seen a lot of growth throughout the years. As a result management became strained and needed to divide the company into groups with a divisional corporate structure. In 1974 the company was faced with financial troubles due to a combination of economic slowdown and growing too quickly. Webster grew too fast and this resulted in “sloppy staffing”. The company did have a PA process in effect, but it was used on a voluntary basis. The mindset of the employees is that anything can be appealed to the President and Chairman; no decision is really final and can be brought before the owners.