US enacts sweeping financial reform legislation

Purpose - The purpose of this paper is to provide an overview of the major provisions of the Dodd‐Frank Wall Street Reform and Consumer Protection Act passed by the US Congress and signed into law by President Obama on July 21, 2010. Design/methodology/approach - This does not offer any empirical analysis of the new law given that it has just been adopted. The paper does provide discussion of the major provisions with some commentary on the arguments for an against each provision. Findings - The new law represents the most sweeping changes in financial regulation and supervision in the USA since the Great Depression. The role of the Federal Government is greatly expanded in almost all aspects of the financial sector of the economy and will affect consumers, investors, and managers of financial service firms. Many feel that the effect of the law will be to adversely affect the competitive environment while others feel the additional regulation is necessary to prevent another financial crisis. Research limitations/implications - As the provisions of this law become more clear, much research will be needed to assess the true economic impact of the law and whether it is indeed providing the additional safeguards against a financial crisis. Originality/value - This review of the new law offers a concise discussion of the major provisions of the recently passed law. This review is of value to those seeking an introduction to the law and its provisions and implications.