Rules and Regulations: How the Details Take Shape

Cleveland Fed’s Forefront magazine has a nice discussion on the topic. It takes you through this journey of how a law becomes a regulation:

Last summer, Congress approved the most sweeping reforms to the financial market regulatory system since the Great Depression with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. But that was only the beginning. Now come the details—hammering out more than 250 rules among 11 different regulatory agencies (the Federal Reserve itself is responsible for developing more than 50 new rules). Many of the rules are geared toward the same goal—preventing a replay of the financial crisis that crippled the economy from 2007 through 2009.

It says though Fed is about monetary policy. But it has a task to do while working on bank regulations:

Most people know the Federal Reserve for its highest profile job—conducting monetary policy. But it’s the Federal Reserve Board’s role as a regulatory agency that empowers it to write rules to govern banks and protect consumers’ financial transactions. In years past, the Federal Reserve has aimed to protect Americans in their financial dealings by implementing and enforcing laws such as the Truth in Lending Act and the Credit Card Accountability, Responsibility, and Disclosure Act.

Americans have been able to comment on proposed rules and regulations in the federal decision-making process for many years, but the rule-writing phase of the Dodd-Frank implementation provides an unusually significant opportunity for people to weigh in. Consider that the Federal Reserve Act of 1913 was all of 31 pages long; the Dodd-Frank legislation was more than 2,000 pages. The impact of Dodd-Frank is wide and deep. It is safe to say this is the best opportunity for citizens to influence federal regulatory policy in generations.

Read the article for more details..

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One Response to “Rules and Regulations: How the Details Take Shape”

  1. bellajz Says:

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