Financial Regulatory Reform Bill
The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed by President Obama on July 21, 2010. Among the highlights of bill are:
•The establishment of a Financial Stability Oversight Council. This council will identify and monitor companies that engage in activities that could threaten the stability of the financial system. The council will also have the ability, through the Federal Reserve, to break up large firms.
•The establishment of the Consumer Financial Protection Bureau, which will consolidate most of the federal regulation of financial services offered to consumers. Most credit providers, including mortgage lenders, payday loan providers and bank and credits unions with assets over $10 billion will be subject to the new regulations.
•Executive compensation will require a nonbinding shareholder vote. Compensation based on financial statements that are later restated may have to be returned.
•Companies that file with the SEC will be required to disclose in a proxy statement the reasons why they have separated or combined the positions of chairman and CEO.
•The Office of Thrift Supervision will be eliminated and savings-and-loan institutions will now be regulated by the Office of the Comptroller of the Currency, which currently regulates federally chartered banks.
To read the full bill click here.
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