The Dodd–Frank Act: Its implications for change in the banking industry

As the most wide-sweeping overhaul of the US financial industry seen in decades, Dodd–Frank dramatically changes the existing regulatory environment, amends the Federal Reserve Act as well as numerous other federal laws, and establishes tighter supervision standards to protect the US economy. It will profoundly affect all: consumers, businesses, financial institutions and the regulatory infrastructures themselves. At over 2,200 pages, this legislation is just the beginning. Existing and newly minted regulatory bodies must now write the rules that will implement the provisions of Dodd–Frank. Comments on proposed rulemaking will certainly influence outcomes. Several of these rulemaking deadlines will fall due between the time of this writing and the actual publication date, so clarity and specific details around many of the components of the Act are not complete at this time. Given the complexity of Dodd–Frank and its sprawling scope, this paper focuses on just a few of those key components of Dodd–Frank that most directly affect the payments environment.