What 2008 events gave rise to the need for this legislation?
The need for the Dodd-Frank Act (which complete name is the “Dodd–Frank Wall Street Reform and Consumer Protection Act”) was given rise by the financial crisis of 2007–08. This crisis triggered the Great Recession, an event many economists consider the worst crisis in the financial markets since the 1930’s (Dodd-Frank Financial Regulatory Reform Bill Definition, 2016). The United States had suffered a “housing bubble” – an unexpected and sharp increase in real estate prices, fueled by easy credit, that lasted over a decade – which had burst in 2004. Many traded financial instruments had their value directly or ...
