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    Federal financial regulation in the United States

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    Financial regulation in the U.S.
    Dodd-Frank Act
    Federal Reserve
    Consumer Financial Protection Bureau
    Financial regulation by state
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    The United States financial system is a network that facilitates exchanges between lenders and borrowers. The system, which includes banks and investment firms, is the base for all economic activity in the nation. According to the Federal Reserve, financial regulation has two main intended purposes: to ensure the safety and soundness of the financial system and to provide and enforce rules that aim to protect consumers. The regulatory framework varies across industries, with different regulations applying to different financial services.[1]

    Individual federal and state entities have different and sometimes overlapping responsibilities within the regulatory system. For example, individual states and three federal agencies—the Federal Reserve, the Office of Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC)—regulate commercial banks. Other sectors of the financial market are regulated by specific entities.[2][3]

    Some, such as the Brookings Institution, argue that expanded governmental regulation of banks and financial products (e.g., mortgages) can prevent large-scale financial crises, protect consumers from abusive practices, and stabilize financial markets. Others, such as the Cato Institute, argue that over-regulation of banks of banks and financial products burdens business, stalls economic growth, and does little, if anything, to stabilize financial markets. Beyond this basic debate about the role of the government in regulating the private financial sector, there are varying opinions about the proper extent of governmental regulation.[4][5]

    This article provides information about the federal financial regulatory structure, including summary descriptions of laws, agencies, and congressional committees. See the tabs below for further information:

    1. Background: This tab provides contextual information about financial regulation, including key term definitions and historical background.
    2. Federal legislation: This tab provides summary information about select federal financial regulatory laws.
    3. Federal agencies: This tab provides information about agencies involved in implementing and enforcing federal finance policy.
    4. Congressional committees: This tab provides information about the congressional committees and subcommittees that are involved in setting federal finance policy.
    5. Recent legislation: This tab provides information recent bills relating to financial regulation that have been introduced in the United States Congress.

    Background[edit]

    Key terms and definitions[edit]

    The following is a list of key terms that are used throughout this article:

    1. Commercial bank: An entity that provides financial services to individuals and businesses; commercial banks provide a variety of financial products and services, including savings accounts, checking accounts, and certificates of deposit.[6]
    2. Credit union: A financial entity similar to a commercial bank that is owned by its members.[7]
    3. Depository institution: A financial entity, such as a bank or credit union, that accepts deposits from individuals and pays interest on those deposits.[8]
    4. Financial system: The network of financial entities that facilitates exchanges between lenders and borrowers.[9]
    5. Investment banking: A form of banking that is "related to the creation of capital for other companies, governments, and other entities. Investment banks underwrite new debt and equity securities for all types of corporations, aid in the sale of securities, and help to facilitate mergers and acquisitions, reorganizations and broker trades for both institutions and private investors."[10]
    6. Security: A security "represents an ownership position in a publicly traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option."[11]

    Historical context[edit]

    In October 1907, a financial crisis known as the Panic of 1907 occurred in the United States. Also known as the Knickerbocker Crisis, the Panic of 1907 began with a failed attempt to manipulate the stocks of the United Copper Company. As the manipulation failed, banks that had lent money for the purpose of manipulating United Copper's stocks, including the Knickerbocker Trust Company, began to fail. This triggered a rush of depositors demanding their money back from Knickerbocker, leading to the company's collapse. This collapse stoked fears that other banks would go bankrupt, and so customers began withdrawing their funds from regional banks. This, in turn, caused a recession as banks failed due to lack of funds. During this time, the New York Stock Exchange fell by about half.[12][13]

    The lack of a central bank for the United States, which proponents argued might have provided a source of assets for struggling financial institutions, was seen by some to be a cause of the Panic of 1907. In 1910, Senator Nelson Aldrich (R) introduced legislation for the creation of a central bank. The first bill failed to pass, but provisions of it were incorporated into the Federal Reserve Act of 1913. This act provided for the creation of the Federal Reserve System (also known as the Fed), the central bank of the United States. The establishment of the Federal Reserve marked a key turning point in the federal government's regulation of the private financial sector.[14]

    A breadline in New York City during the Great Depression

    In the wake of the Great Depression, a worldwide economic depression in the 1930s, the United States government adopted the Glass-Steagall Act, which represented an expansion of the federal government's role in regulating the financial sector. The Glass-Steagall Act was a direct reaction to banking failures; the law sought to prevent future failures by separating commercial banking and securities activities. The role of the Federal Reserve in the Great Depression has been a subject of debate. According to former Federal Reserve Chairman Ben Bernanke, the actions of the Fed were a cause of the Great Depression. Bernanke said the Fed's decision to raise interest rates in 1928 and 1929 contributed to the depression. The raise was an attempt to limit speculation in the securities market, but instead slowed economic activity as investors feared losing money due to inflation on their investments. Economist Milton Friedman argued that the Fed did not cause the depression, but that mistakes in policy prevented the Fed from stopping the recession from becoming a depression.[15][16]

    More recently, the financial crisis of 2008, sometimes referred to as the Great Recession, launched the United States and the global economy into the most severe economic crisis since the Great Depression. Investopedia, an online financial encyclopedia, describes the recession as follows:[17]

    “ During the American housing boom of the mid-2000s, financial institutions began marketing mortgage-backed securities (MBSs) and sophisticated derivative products at unprecedented levels. When the real estate market collapsed in 2007, these securities declined precipitously in value, jeopardizing the solvency of over-leveraged banks and financial institutions in the U.S. and Europe.

    Although the global economy was already feeling the grip of a credit crisis that had been unfolding since 2007, things came to a head a year later with the bankruptcy of Lehman Brothers, the country’s fourth-largest investment bank, in September 2008. The contagion quickly spread to other economies around the world, most notably in Europe. As a result of the Great Recession, the United States alone shed more than 7.5 million jobs, causing its unemployment rate to double. Further, American households lost roughly $16 trillion of net worth as a result of the stock market plunge.[18]

    		”
    —Investopedia

    There are competing theories as to what led to the housing boom and bubble that spurred the recession of 2008. There is also debate about whether the repeal of the Glass-Steagall Act in 1999 contributed to the recession. In 2008, at the height of the crisis, U.S. gross domestic production growth slowed to 0.4 percent. The nation's unemployment rate spiked, hitting 10 percent in October 2009.[19][20][21]

    This period of stagnant growth and high unemployment lasted from December 2007 to June 2009. During this time, the federal government spent $700 billion via the Troubled Asset Relief Program (TARP) in an attempt to support the failing financial system. Lawmakers supporting TARP claimed that certain financial institutions, such as Citigroup and Wells Fargo, were “too big to fail,” meaning that the failure of these entities would threaten the entire financial system. Critics referred to this program as a "bailout," arguing that the program forced taxpayers to rescue, or "bailout," a private industry.[22][23]

    In 2009, Representative Barney Frank (D) and Senator Chris Dodd (D) drafted a financial regulation bill, known as Dodd-Frank, which was introduced in the United States House of Representatives in December 2009 and enacted the following year. According to the United States House of Representatives Financial Services Committee, Dodd-Frank created 400 new financial regulations. Additionally, the bill created four new federal agencies: the Consumer Financial Protection Bureau (CFPB), the Office of Financial Research (OFR), the Federal Insurance Office (FIO), and the Financial Stability Oversight Council (FSOC).[24][25]

    Federal legislation[edit]

    Dodd-Frank Act (2010)[edit]

    See also: Dodd-Frank Act
    President Barack Obama shakes hands with House Speaker Nancy Pelosi after the signing of the Dodd-Frank Act.

    The stated purpose of the Dodd–Frank Wall Street Reform and Consumer Protection Act, adopted in 2010, was "to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end 'too big to fail,' to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes."[26]

    According to the House Financial Services Committee, Dodd-Frank created 400 new financial regulations. Additionally, the sixteen-title act created four new federal agencies: the Consumer Financial Protection Bureau (CFPB), the Office of Financial Research (OFR), the Federal Insurance Office (FIO), and the Financial Stability Oversight Council (FSOC).[27]

    The act was subject to debate. Proponents argued that the regulations mandated by the Dodd-Frank Act were necessary for financial markets. Opponents, however, argued that the rules in the act would not mitigate financial risk and challenged the constitutionality of the act. At the signing ceremony for the act, President Barack Obama said the following:[28]

    “ The fact is, the financial industry is central to our nation’s ability to grow, to prosper, to compete and to innovate. There are a lot of banks that understand and fulfill this vital role, and there are a whole lot of bankers who want to do right -- and do right -- by their customers. This reform will help foster innovation, not hamper it. It is designed to make sure that everybody follows the same set of rules, so that firms compete on price and quality, not on tricks and not on traps.[18] ”
    —President Barack Obama

    John Boehner (R), the House minority leader at the time of the bill's passage, said the following on July 15, 2010:[29]

    “ It ought to be repealed. The financial reform bill is ill-conceived. There are common-sense things that we should do to plug the holes in the regulatory system that (already) were there and to bring more transparency to financial transactions. It’s going to punish every banker in America for the sins of a few on Wall Street.[18] ”

    Emergency Economic Stabilization Act (2008)[edit]

    See also: Emergency Economic Stabilization Act of 2008

    The Emergency Economic Stabilization Act (EESA) is a financial regulation law adopted in 2008. According to Secretary of the Treasury Henry Paulson, the purpose of the bill was to stabilize the economy in the wake of the 2008 recession. The law granted the United States Department of the Treasury the authority to purchase up to $700 billion in troubled assets via the Troubled Asset Relief Program (TARP). Troubled assets were defined by the Congressional Budget Office as assets that were determined to be in danger of failing and the purchase of which would promote financial stability. The act is sometimes referred to by critics as the bailout.[30]

    Opinion on the EESA was divided. According to proponents, the law was necessary to prevent the recession from worsening. President George W. Bush (R), who signed the legislation into law, said the following:[31]

    “ I know some Americans have concerns about this legislation, especially about the government's role and the bill's cost. As a strong supporter of free enterprise, I believe government intervention should occur only when necessary. In this situation, action is clearly necessary. And ultimately, the cost -- ultimately, the cost to taxpayers will be far less than the initial outlay. See, the government will purchase troubled assets and once the market recovers, it is likely that many of the assets will go up in value. And over time, Americans should expect that much -- if not all -- of the tax dollars we invest will be paid back.[18] ”
    —President George W. Bush

    However, critics claimed that legislation amounted to a bailout of failing private financial firms by taxpayers. In October 2010, Senator Elizabeth Warren (D) said the following regarding the program's purchase of assets from American International Group (AIG):[32]

    “ The rescue of AIG continues to have a poisonous effect on the marketplace. By providing a complete rescue that called for no shared sacrifice on the part of AIG and its creditors, the government fundamentally changed the rules of the game on Wall Street. As long as the biggest companies in America believe that you and I will bail them out, the worst effects of the AIG rescue will linger.[18] ”
    —Senator Elizabeth Warren

    Former Representative John Boehner (R), House Minority Leader at the time of the EESA's passage, voted in favor of the EESA, but later opposed the implementation of TARP. Responding to President Barack Obama's request to grant the program the final $350 billion allocated to it by the EESA, Boehner wrote the following in January 2009:[33]

    “ I remain disappointed about the way TARP has been managed and how its resources have been spent over the last several months. From the outset, the program has been implemented with too little transparency and in a manner inconsistent with the way it was presented to Congress last fall.[18] ”
    —Former Representative John Boehner

    Gramm-Leach-Bliley Act (1999)[edit]

    See also: Gramm-Leach-Bliley Act

    The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, was passed in November 1999. The law repealed the Glass–Steagall Act of 1933, which limited securities activities within commercial banks and interactions between commercial banks and securities firms. The passage of the GLBA allowed commercial banks, investment banks, securities firms, and insurance companies to interact in ways not permitted under Glass-Steagall. The GLBA established regulations for the ways financial institutions handle private information about their customers.[34]

    According to some politicians and economists, the passage of the GLBA and, with it, the repeal of Glass-Steagall, contributed to the financial crisis of 2008. According to economist Joseph Stiglitz, "As we stripped back the old regulations, we did nothing to address the new challenges posed by 21st-century markets." Others argued that the repeal of Glass-Steagall had nothing to do with the crisis, or that the effects were minor. In a 2015 interview, former president Bill Clinton, who signed the Gramm–Leach–Bliley Act into law, said, "There's not a single, solitary example that [the repeal of Glass-Steagall] had anything to do with the financial crash."[35][36]

    Truth in Lending Act (1968)[edit]

    According to the Office of the Comptroller of the Currency, the Truth in Lending Act (TILA) is a federal law intended to promote accurate credit billing and credit card practices. The act was signed into law by President Lyndon B. Johnson in 1968 and took effect in July 1969. Initially, the act gave regulatory authority to the Federal Reserve Board, but this authority was transferred to the Consumer Financial Protection Bureau in July 2011 as part of the Dodd-Frank Act.[37][38]

    TILA mandated that all consumer lenders disclose to borrowers the annual percentage rate, or APR, of loans. This was in response to misleading interest rate calculations some lenders had been using. TILA also required lenders to provide consumers with loan cost information, including the length of the loan and total costs, and mandated that loans covered under the act be subject to a three-day period during which a customer could back out of the loan process.[37][39]

    Glass-Steagall Act (1933)[edit]

    Senator Carter Glass and Representative Henry B. Steagall

    According to the Congressional Research Service, the Glass-Steagall Act, also known as the Banking Act of 1933, was enacted to limit the interaction between investment and commercial banks.[40][41]

    Commonly, Glass-Steagal refers to four specific provisions of the law. These four provisions separated commercial and investment banking by preventing member banks of the Federal Reserve from dealing in non-governmental securities for customers, investing in non-investment-grade securities for themselves, underwriting and distributing non-governmental securities, or affiliating with any company involved in these activities. This separation also prevented investment banks from accepting deposits from customers.[40][42]

    In the 1960s, bank regulators and the Office of the Comptroller of the Currency issued interpretations of the act that allowed banks and affiliates to engage in increasing amounts of securities activities. Beginning in the 1980s, the United States Congress debated repealing the act. The act was repealed in 1999 via the Gramm–Leach–Bliley Act.[40][42]

    Federal agencies[edit]

    Consumer Financial Protection Bureau[edit]

    See also: Consumer Financial Protection Bureau

    The Consumer Financial Protection Bureau (CFPB) is an independent government agency created in 2010. It is responsible for consumer protection in the financial industry. The CFPB serves as the regulatory body responsible for consumer protection in the financial sector. The CFPB may take action against institutions that employ predatory practices, discriminate, or commit fraud, among other practices. The CFPB can write and enforce regulations for financial institutions with assets exceeding $10 billion, as well as their affiliates. Smaller institutions are regulated by state-level agencies. Lists of institutions regulated by the CFPB by year are available here.[43]

    Department of the Treasury[edit]

    See also: U.S. Department of the Treasury

    The Department of the Treasury is a United States executive department established in 1789. The department was originally formed as a solution to managing the finances of the federal government. The department is headed by the Secretary of the Treasury, a cabinet-level position. The Secretary of the Treasury is tasked with advising the president on economic and fiscal policy. The secretary also serves as the chief financial officer of the federal government. The department's responsibilities include supervising national banks, enforcing federal finance laws, and publishing financial statistics reports.[44]

    Federal Deposit Insurance Corporation[edit]

    See also: Federal Deposit Insurance Corporation
    The Federal Deposit Insurance Corporation insures bank deposits up to $250,000.

    The Federal Deposit Insurance Corporation (FDIC) is an independent government corporation that provides deposit insurance to banks. Deposit insurance covers a depositor's accounts dollar-for-dollar in the event of a bank failure or closing, ensuring that depositors do not lose their money as a result of a bank's actions. The FDIC was created as part of the Glass-Steagall Act, after numerous bank failures had eroded trust in the nation's banking system. Bank failures occur when banks are unable to meet their financial obligations and thus become insolvent. As banks failed, many depositors began withdrawing money from their own banks, fearing that they too would also become insolvent. These mass withdrawals, referred to as bank runs, further eroded trust in the banking system, as banks closed after being unable to handle the volume of withdrawal requests. At its creation, the FDIC insurance limit was $2,500. This limit has been raised periodically since its creation; most recently, the Dodd-Frank Act expanded this coverage to the current level of $250,000.[45][46]

    The FDIC does not receive public funds. Instead, the FDIC is funded by membership dues paid by member banks. While no federal law mandates participation, most states require banks to be members in the FDIC to be chartered in the state. As of October 2014, the FDIC employed over 7,000 people and insured over 6,000 institutions.[47]

    Federal Reserve[edit]

    The Federal Reserve headquarters

    The Federal Reserve System, also referred to as the Fed, is the central banking system of the United States. The Fed was established on December 23, 1913, as part of the Federal Reserve Act, as a result of financial crises that some believed showed a need for central control of the nation's monetary system. Financial crises, such as the Great Depression and the Great Recession, led to the expansion of the Fed's authority and responsibilities.[48]

    According to the Fed, its duties fall into four areas:

    “
    1. conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
    2. supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
    3. maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
    4. providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system[49][18]
    		 ”

    The Fed is composed of the Board of Governors (who are presidentially appointed), the Federal Open Market Committee, twelve Federal Reserve Banks, privately owned member banks, and advisory councils.[50]

    As the Fed is the central bank of the nation, the United States government receives the profits of the system, after a dividend is paid to member banks. In 2015, the Fed made a profit of $100.2 billion, of which $97.7 billion went to the United States Treasury. The rest was used to fund a surplus account for federal infrastructure projects.[51]

    Financial Stability Oversight Council[edit]

    See also: Financial Stability Oversight Council

    The Financial Stability Oversight Council (FSOC) is an organization established under the Dodd-Frank Wall Street Reform and Consumer Protection Act to monitor and respond to risks to the United States' financial system. The nation's financial system is a complex network of banks and investment firms that facilitates exchanges between lenders and borrowers; it is the base for all economic activity in the nation. The FSOC was formed in on July 21, 2010, when President Barack Obama (D) signed the Dodd-Frank Act into law.[52]

    The council was created to identify risks to U.S. financial stability both within and outside of the financial services marketplace and to respond to threats to the U.S. financial system. The FSOC also aims to “promote market discipline, by eliminating expectations […] that the government will shield [financial institutions] from losses in the event of failure."[52]

    National Credit Union Administration[edit]

    The National Credit Union Administration (NCUA) is an independent federal agency created to regulate and supervise federal credit unions. The NCUA was originally known as the Bureau of Federal Credit Unions, and was renamed in 1970 due to an overhauling of authority and the formation of the National Credit Union Share Insurance Fund (NCUSIF), a fund intended to insure deposits at federal credit unions.[53]

    The NCUA is governed by a three-member board appointed by the President of the United States with the advice and consent of the United States Senate. Members serve six-year terms. The NCUA is organized through five regional offices, which cover specific states and territories. As of May 2016, the NCUA employed over 1,200 people.[54]

    Like the FDIC, the NCUA and NCUSIF do not receive public funds and are instead funded by dues paid by participating federal credit unions. All federally-chartered credit unions are required to participate, and thought it is not required of them, most state-chartered credit unions also participate. Deposits at federal credit unions are insured up to $250,000.[55]

    Securities and Exchange Commission[edit]

    See also: Securities and Exchange Commission

    The United States Securities and Exchange Commission (SEC) is a federal government agency responsible for the regulation of the nation's securities industry. The agency enforces securities laws and proposes rules. The agency was established in 1934 with the passage of the Securities Exchange Act. The SEC has authority to regulate the securities industry. This includes the authority to draft regulations for the industry. SEC regulations include requiring brokers to disclose financial information about the securities they offer to the public. In addition, the SEC has the power to enforce federal securities laws. The Enforcement Division of the SEC is tasked with investigating allegations of violations and bringing action against violators. The SEC can only bring civil action in a district court against violators. The SEC may refer violators to state and federal prosecutors to bring criminal charges.[56]

    Congressional committees[edit]

    United States Senate[edit]

    Committee on Finance[edit]

    The United States Senate Committee on Finance is a standing committee of the U.S. Senate. It has jurisdiction over matters of public deposits, taxation, and other revenue measures. The table below lists members of the committee in the 115th United States Congress.

    Committee on Finance Members, 2017-2018
    Democratic members (12)Republican members (14)
    • Ron Wyden (Oregon) Ranking Member• Orrin Hatch (Utah) Chairman
    • Debbie Stabenow (Michigan) • Chuck Grassley (Iowa)
    • Maria Cantwell (Washington) • Mike Crapo (Idaho)
    • Bill Nelson (Florida) • Pat Roberts (Kansas)
    • Robert Menendez (New Jersey) • Michael Enzi (Wyoming)
    • Thomas Carper (Delaware) • John Cornyn (Texas)
    • Benjamin Cardin (Maryland) • John Thune (South Dakota)
    • Sherrod Brown (Ohio) • Richard Burr (North Carolina)
    • Michael Bennet (Colorado) • Johnny Isakson (Georgia)
    • Robert Casey (Pennsylvania) • Rob Portman (Ohio)
    • Mark Warner (Virginia) • Patrick Toomey (Pennsylvania)
    • Claire McCaskill (Missouri) • Dean Heller (Nevada)
    • Tim Scott (South Carolina)
    • Bill Cassidy (Louisiana)

    United States House of Representatives[edit]

    Committee on Financial Services[edit]

    The United States House of Representatives Committee on Financial Services is a standing committee of the U.S. House of Representatives. It has jurisdiction over banks, deposit insurance, and other finance matters. The table below lists members of the committee in the 115th United States Congress.

    Committee on Financial Services Members, 2017-2018
    Democratic members (26)Republican members (34)
    • Maxine Waters (California) Ranking Member• Jeb Hensarling (Texas) Chairman
    • Carolyn Maloney (New York) • Peter King (New York)
    • Nydia Velázquez (New York) • Edward Royce (California)
    • [[Brad Sherman]] (California) • Frank Lucas (Oklahoma)
    • Gregory Meeks (New York) • Patrick McHenry (North Carolina)
    • Michael Capuano (Massachusetts) • Stevan Pearce (New Mexico)
    • William Lacy Clay (Missouri) • Bill Posey (Florida)
    • Stephen Lynch (Massachusetts) • Blaine Luetkemeyer (Missouri)
    • David Scott (Georgia) • Bill Huizenga (Michigan)
    • Al Green (Texas) • Sean Duffy (Wisconsin)
    • Emanuel Cleaver (Missouri) • Steve Stivers (Ohio)
    • Gwen Moore (Wisconsin) • Randy Hultgren (Illinois)
    • Keith Ellison (Minnesota) • Dennis Ross (Florida)
    • Ed Perlmutter (Colorado) • Robert Pittenger (North Carolina)
    • James Himes (Connecticut) • Ann Wagner (Missouri)
    • Bill Foster (Illinois) • Andy Barr (Kentucky)
    • Dan Kildee (Michigan) • Keith Rothfus (Pennsylvania)
    • John Delaney (Maryland) • Luke Messer (Indiana)
    • Kyrsten Sinema (Arizona) • Scott Tipton (Colorado)
    • Joyce Beatty (Ohio) • Roger Williams (Texas)
    • Denny Heck (Washington) • Bruce Poliquin (Maine)
    • Juan Vargas (California) • Mia Love (Utah)
    • Josh Gottheimer (New Jersey) • French Hill (Arkansas)
    • Vicente Gonzalez (Texas) • Tom Emmer (Minnesota)
    • Charlie Crist (Florida) • Lee Zeldin (New York)
    • Ruben Kihuen (Nevada) • David Trott (Michigan)
    • Barry Loudermilk (Georgia)
    • Alexander Mooney (West Virginia)
    • Thomas MacArthur (New Jersey)
    • Warren Davidson (Ohio)
    • Tedd Budd (North Carolina)
    • David Kustoff (Tennessee)
    • Claudia Tenney (New York)
    • Trey Hollingsworth (Indiana)

    Subcommittees[edit]

    Capital Markets and Government Sponsored Enterprises[edit]

    The Subcommittee on Capital Markets and Government Sponsored Enterprises has jurisdiction over securities and housing finance laws. The subcommittee oversees the governmental entities authorized to implement and enforce these laws, including the Securities and Exchange Commission, the Federal Housing Finance Agency and its regulated government sponsored entities, Fannie Mae, Freddie Mac and the Federal Home Loan Banks.[57]

    Financial Institutions and Consumer Credit[edit]

    The Subcommittee on Financial Institutions and Consumer Credit has jurisdiction over federal law governing depository institutions and consumer credit. The subcommittee oversees banking regulators such as the Federal Deposit Insurance Corporation and the Federal Reserve, nonbank financial services providers such as consumer reporting agencies, and matters pertaining to consumer credit. [58]

    Subcommittee on Oversight and Investigations[edit]

    The Subcommittee on Oversight and Investigations has jurisdiction for ensuring that federal agencies, and private entities are operating within federal law. Specifically, the Subcommittee is charged with the oversight of all federal financial regulators, and is authorized to conduct investigations into allegations of fraud, waste or abuse in the public sector, or misconduct in the private sector.[59]

    Recent legislation[edit]

    The following is a list of recent finance policy bills that have been introduced in or passed by the United States Congress. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

    Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, then no legislation pertaining to this topic has been introduced in the legislature recently.

    See also[edit]

    Financial regulation in the 50 states[edit]

    Click on a state below to read more about financial regulation in that state.

    http://ballotpedia.org/Financial_regulation_in_STATE

    External links[edit]

    Footnotes[edit]

    1. ↑ Board of Governors of the Federal Reserve System, "Government Performance and Results Act Annual Performance Report 2011," July 10, 2012
    2. ↑ The National Bureau of Economic Research, "A Brief History of Regulations Regarding Financial Markets in the United States: 1789 to 2009," September 2011
    3. ↑ Federal Deposit Insurance Corporation, "The U.S. Federal Financial Regulatory System: Restructuring Federal Bank Regulation," January 19, 2006
    4. ↑ Brookings, "The Origins of the Financial Crisis," November 24, 2008
    5. ↑ The Cato Institute, "Did Deregulation Cause the Financial Crisis?" July 2009
    6. ↑ Investopedia, "Commercial Bank," accessed October 18, 2016
    7. ↑ Investopedia, "Credit Union," accessed October 18, 2016
    8. ↑ Business Dictionary, "Depository institution," accessed October 18, 2016
    9. ↑ Investopedia, "Financial System," accessed October 18, 2016
    10. ↑ Investopedia, "Investment Banking," accessed October 18, 2016
    11. ↑ Investopedia, "Security," accessed October 18, 2016
    12. ↑ Federal Reserve History, "The Panic of 1907," accessed November 2, 2016
    13. ↑ Investopedia, "Bank Panic of 1907," accessed November 2, 2016
    14. ↑ Federal Reserve Bank of Boston, "Panic of 1907," accessed November 2, 2016
    15. ↑ The New York Times, "What Is Glass-Steagall? The 82-Year-Old Banking Law That Stirred the Debate," October 14, 2015
    16. ↑ Wall Street Journal, "Long Study of Great Depression Has Shaped Bernanke's Views," December 7, 2005
    17. ↑ Investopedia, "The Great Recession," accessed November 1, 2016
    18. ↑ 18.0 18.1 18.2 18.3 18.4 18.5 18.6 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
    19. ↑ Bureau of Labor Statistics, "The Recession of 2007–2009," February 2012
    20. ↑ The Atlantic, "It Wasn't Household Debt That Caused the Great Recession," May 21, 2014
    21. ↑ Heritage Foundation, "Government Policies Caused The Financial Crisis And Made the Recession Worse," accessed December 1, 2016
    22. ↑ United States Treasury Department, "TARP Programs," January 13, 2016
    23. ↑ The New York Times, "If It’s Too Big to Fail, Is It Too Big to Exist?" June 20, 2009
    24. ↑ Office of the Clerk, "Final Vote Results for Roll Call 413," accessed October 11, 2016
    25. ↑ Financial Services Committee, "Oversight of Dodd-Frank Act Implementation," accessed October 11, 2016
    26. ↑ Government Publishing Office, "HR 4137," January 5, 2010
    27. ↑ Dodd Frank Update, "Dodd-Frank Summary," accessed September 8, 2016
    28. ↑ whitehouse.gov, "Remarks by the President at Signing of Dodd-Frank Wall Street Reform and Consumer Protection Act," July 21, 2010
    29. ↑ Washington Times, "Boehner calls for repeal of Wall Street reform bill," July 15, 2010
    30. ↑ Government Publishing Office, "Emergency Economic Stabilization Act of 2008, Pub. L. No, 110–343, 122 STAT. 3765 (2008)", accessed December 31, 2016
    31. ↑ The White House: President George W. Bush, "President Bush Discusses Emergency Economic Stabilization Act of 2008," October 3, 2008
    32. ↑ Politico, "Criticism of TARP persists," October 1, 2010
    33. ↑ Speaker of the House, "GOP Leader: "I remain disappointed about the way TARP has been managed and how its resources have been spent over the last several months,"" January 11, 2009
    34. ↑ Government Publishing Office, "Gramm–Leach–Bliley Act," accessed January 10, 2016
    35. ↑ Vanity Fair, "Capitalist Fools," January 2009
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