Consumers Protection Acts - Essay Example

In any case that the lending institutions that will fail will never place their consumers at any risk of losing their money, but such risks will be transferred to Wall Street, the institution that has been mandated to an oversight on the viability and functions of the financial institutions. In other words, if any financial institution fails, not the customers and taxpayers will bear the cost of such failed financial institutions but Wall Street.

Notably, the Dodd-Frank Wall Street and Consumer Protection Act of 2010 works with the Consumer Financial Protection Bureau (CFPB) that ensures that financial institutions have high financial standards that they uphold at all times of their operations (Berson and Berson, 2012). It is also worth noting that the retained percentage will also minimize the losses incurred by financial institutions in case of defaulters. The Dodd-Frank Wall Street and Consumer Protection Act of 2010 and its components seem not to be favoring financial institutions since it does not provide bail-out for financial institutions during a rough economy, rather, the government will shut them down as they will be considered as failed institutions.

"Wall Street?" Who owns all those securities? Additionally, do think that the 5% rule is that much different from the previous 0% rule? Will it have the effects you describe?
• The Wall Street Reform or the Dodd-Frank Wall Street Reform and Consumer Protection Act are regulations that oversight the financial market.
• All the securities of a loan are owned by the bank
• There are no great differences in the 5% rule compared to the 0% rule; however, it has an effect on the principal amount in that the principal amount will never be less by 5%.