Abstract
After about three years of the sub-prime mortgage crisis, the American Congress passed its new financial supervision bill on July 15, 2010, which is called Dodd-Frank Wall Street Reform and Consumer Protection Act. This act was then singed to be in effect by President Obama on July 21. This act is named as the most serious financial supervision act passed ever since the Great Depression in 1933. This paper systematically reviews and analyzes the background, major content, effect, and historical dimension of the bill, and on this basis, it presents some implications to the financial governance reform in emerging markets, such as the maintenance of a proper level of financial deregulation, the protection of interests of financial product consumers, the cultivation of ethical value and social responsibility of financial executives or government leaders, etc.
Highlights
This paper systematically reviews and analyzes the background, major content, effect, and historical dimension of the bill, and on this basis, it presents some implications to the financial governance reform in emerging markets, such as the maintenance of a proper level of financial deregulation, the protection of interests of financial product consumers, the cultivation of ethical value and social responsibility of financial executives or government leaders, etc
In 2007, the subprime mortgage in the US triggered the breakout of the global financial crisis which has not been over even today
USA has already taken both monetary policy measures such as open market policy operation, etc., and fiscal policy measures such as increasing investment on infrastructure, etc., to respond to it, and these measures have brought some negative effects on the recovery of the US economy
Summary
In 2007, the subprime mortgage in the US triggered the breakout of the global financial crisis which has not been over even today. In 2009, to respond to the crisis, many countries had taken measures of monetary and fiscal policy to recover their economy. With a multi-dimension mode of financial supervision and control, USA has taken measures from three aspects including financial supervision law and regulation, monetary policy system and fiscal policy system (Figure 1). USA has already taken both monetary policy measures such as open market policy operation, etc., and fiscal policy measures such as increasing investment on infrastructure, etc., to respond to it, and these measures have brought some negative effects on the recovery of the US economy. In 2000, Chris Dodd, Chairman of Senate Financial Services Committee, and Barney Frank, chairman of House Financial Services Committee, recommended the revision of the financial supervision bill. This paper will discusses the content and influence of the New US Financial Supervision Bill from a historical dimension in order to propose some implications for the financial supervision reform of emerging economies
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