Title IV of the Dodd-Frank Act

Title IV of the Dodd-Frank Act focuses on enhancing the stability of the U.S. financial system by regulating bank capital and recovery plans. It requires large banks to hold enough capital to withstand economic shocks and develop "living wills"—plans for orderly liquidation if they fail. This aims to prevent bank failures from destabilizing the economy, ensuring financial institutions are more resilient and better prepared to manage crises, ultimately protecting consumers and the broader financial system.