Research And Study Of The U.S. Financial Regulation Reform Based On "Dodd-Frank Act"

2008U.S. financial crisis is thought to be the rule in the context of liberalization, theresult of long-term accumulation of financial risks in the financial sector. From a domesticperspective, the crisis has exposed systemic risk regulation in the United States;"too big tofail" problem, eliminate moral hazard, financial consumer and investor protection; Foreignderivatives and; regulatory agency responsible for the Group’s financial shadow bankingsupervision and other aspects of defects.To this end, the United States spent more than a year, the financial regulatory system tocarry out drastic reforms. July21,2010,"Dodd-Frank Wall Street Reform and ConsumerProtection Act" came into effect. The bill not only for the U.S. financial regulatory system hasbeen substantially restructured and strengthened, but also the complete overthrow of the ruleof liberalization trends in the financial sector, further defined the responsibilities of thegovernment and the market. The new bill has16sections, a total of more than2800pages,covering many aspects of banks, hedge funds, credit rating agencies, dealers, investmentadvisers and other financial institutions. In addition, after the enactment of the bill, but also toestablish rules243, you need to conduct research and provide a report almost a hundred.From the theory, policy and practice of combining the perspective, the use ofinstitutional change theory and other modern economic and financial theory,"Dodd-FrankAct" as the basis, using a comparative law analysis and summarized, emphasizing thetheoretical and empirical analysis combined, the combination of micro and macroeconomicanalysis, combining contradictory particularity and universality, commonality andindividuality combined with literature research and case studies a combination of the pros andcons of the U.S. financial regulatory reform system analysis, fully draw the advancedexperience of financial regulatory reform, put forward policy proposals to build with Chinesecharacteristics, the financial regulatory system. The thesis is divided into eight chapters. Thefirst chapter is the full text of the introduction. Introduces the background, a clear sense of thestudy, the system sorts out the foreign literature, the article elaborated ideas and researchframework, the main innovation. The second chapter describes the theoretical basis forbanking regulatory reform-institutional change theory, this theory effectively support theanalysis of the whole article, this chapter describes the new institutional economics theory of institutional change, dialectical analysis of the relationship between the banking regulatoryreform and institutional change theory and, ultimately, the institutional arrangementsproposed banking supervision. The third chapter introduces the "Dodd-Frank Act"generation, describes the main contents of the bill, and the bill as a whole for a simpleComment. The core of the reform proposed: strengthening systemic regulation of the financialsystem; establish a sound mechanism for an orderly liquidation; provide more protection forconsumers; expanding the scope of financial regulation and so on. In the ensuing four toseven chapters, the core content of the article will reform the main line,"Dodd-Frank Act" asthe basis, one by one carefully elaborated, and Evaluation system reform. The fourth chapterfocuses on key measures of the bill’s lack of supervision of systemic risk taken. First, theestablishment of the Financial Stability Oversight Council to strengthen early warning ofsystemic risks and control; Second, proposed a more stringent regulatory standards forsystemically important financial institutions. Made in strengthening systemic risk regulatorshould actively learn from the advanced experience of the United States, such asstrengthening capital regulation awareness, regulatory loopholes to prevent systemicallyimportant institutions, scientific conduct stress tests, and constantly improve regulatorytransparency. But also note that still need to continue to improve the effectiveness of theregulatory organization model, criteria for the classification of systemically importantinstitutions, relevance assessment and stress testing. The fifth chapter describes how to solvethe "too big to fail" problem. Established a system applicable to the importance of non-bankfinancial institutions orderly liquidation mechanism, meanwhile, called for the establishmentof systemically important institutions,"recovery and disposal plan." By analyzing the relevantprovisions of the reform, found in the scientific and orderly liquidation mechanism for orderlyliquidation of fund sources and settings, but also continue to improve baking. Chapter6,"Financial Consumer Protection" is widely considered an important highlights and features ofthe bill. Several important issues exposed by the crisis was attributed to lack of financialconsumer protection, such as the proliferation of predatory subprime mortgages andfraudulent credit card and other issues. Establish a relatively independent "ConsumerFinancial Protection Bureau," originally focused on exercising decentralized financialconsumer protection powers to overcome the conflicting roles of financial regulators inprotecting consumers, eliminating regulatory arbitrage, aim to better protect consumers.Learn the lessons of the crisis, the bill also has reformed the mortgage market, and requested the Government to come up with the "two rooms" reform program within the specified time.Chapter VII will highlight the results of the reform in terms of regulatory loopholes to makeup. The financial crisis has exposed many of the regulatory loopholes, some from regulatoryphilosophy and regulatory laws, some due to the lack of institutions covered by the formationof cross yet, but more due to regulatory lag with respect to bringing innovative regulatorygaps, mainly in the regulation of financial derivatives, credit rating agencies and executivepay. Chapter VIII is the focus of the analysis of the revelation of the U.S. financial regulatoryreform, and how to learn from the advanced experience of reform in the United States,improve our financial regulatory framework. This chapter is the full text of the end result.Aspects of this chapter should focus on establishing a macro-prudential regulatory framework,sound design agency exit mechanism, strengthen financial consumer protection, continue tostrengthen supervision of financial derivative products, strengthen the supervision of creditrating agencies, scientific sound system, etc. to improve executive pay.