Dodd-Frank Act (United States)

The Dodd-Frank Act, enacted in 2010 in response to the 2008 financial crisis, is a significant piece of legislation aimed at reforming the financial industry. Its main goals are to increase transparency in financial markets, protect consumers from abusive practices, and prevent future financial crises. The act established regulations for banks and financial institutions, created the Consumer Financial Protection Bureau (CFPB), and imposed stricter oversight on risk-taking activities. By promoting accountability and reducing excessive risk in the financial system, Dodd-Frank seeks to foster stability and protect the economy.