Bye-Bye, Necessary Financial Regulations

For as long as governments have been around – and that’s a pretty long time – people have cried out against the rules and regulations set forth by governing bodies and their bureaucracies. The same can be said for other rules that are required to be followed by residents of certain governments, as well.

While some rules arguably have no place in the rulebooks of such countries, states, cities, and other communities, some are unarguably necessary.

Here’s What I’m Getting At

In 2007, one of the world’s most severe financial crises struck the United States of America. It rolled on through 2009, and became known as the subprime mortgage lending crisis.

Here’s what happened – some of the largest financial institutions, as a means of boosting financial performance “on paper,” or on their financial statements, in proper terms, began rolling out mortgages (loans on houses) to consumers that would generally be considered subprime, or unfit for such loans.

While performance for those financial institutions increased in the years leading up to the predictable crisis, they set themselves up for one of the largest banking failures in history. Once many consumers were unable to cover their financial shortcomings, many more borrowers followed suit.

The major financial recession of 2008 – some argue it was worse than the 1920’s infamous Great Depression – was born.

Here’s What You Need To Know

Whether we agree with the general political views of the United States of America or not, lawmakers in the country’s highest law-making body, the Senate, agreed by a 67-31 margin to roll back the Dodd-Frank Act of 2010, which was put into place to prevent the occurrence of upcoming financial crises in the future.

Donald Trump, when running for United States President in 2016 and earlier, had already promised to wollop the foundations that the 2010 Dodd-Frank Act was supported by, claiming he’d do a “big number” on the bill. While many people didn’t find this rollback surprising, it’s generated quite a bit of controversy because some believe that big financial institutions lobbied for the change through their formidable clout and endless financial pockets.

What Is The Dodd-Frank Act?

The Dodd-Frank Wall Street Reform and Consumer Protection Act, just like its title, is quite lengthy – a whopping 848 pages long. Its contents are difficult to summarize, though they provided stability for the banking industry and held it accountable, generally.

What do you think of the repeal?

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