Question

why was the Dodd Frank wall street and Reform and Consumer Protection Act passed?

Answer 1

The financial crisis of 2008 was believed to have been caused by the banks, mortgage lenders and credit rating agencies. As the investors lost large sums of money, these cats were passed to protect the consumers against abuses relating to mortgages, credit cards and other financial products.

These acts provides a strict regulation on the banks and the mortgage lenders so that consumer interest is protected and another fallout and economic recession is prevented. These acts fights corruption in the financial industry. This act also contains a provision for the whistle blower, where thy will be rewarded financially.

The consumer financial protection boars was founded to protect consumers against unregulated banks,and provide truthful information about credit scores and mortgages.