Honors Theses
Date of Award
2016
Document Type
Undergraduate Thesis
Department
Finance
First Advisor
Bonnie Van Ness
Relational Format
Dissertation/Thesis
Abstract
Following the financial crisis of 2008, President Barrack Obama signed into effect the Dodd-Frank Wall Street Reform and Consumer Protection Act on July 21, 2010. The Act contains stated goals of eliminating too big to fail and promote financial stability. In this paper, I analyze the impacts of new regulations on systemically important financial institutions. In Chapter one, I briefly review U.S. financial regulation and the financial crisis of 2008. In Chapter two, I identify how increasing capital requirements affects banks. This thesis then examines how the Order of Liquidation Authority and its Single Point of Entry Strategy has unintended consequences of encouraging too big to fail. Finally, in Chapter IV I look at why the Volcker Rule was passed and the subsequent impacts of in- creased compliance costs to firms and decreased profitability from prohibiting proprietary trading. In conclusion, I find that the Dodd Frank Act has not accomplished its intended goals and, furthermore, has several negative implications. This thesis highlights key areas in which the Dodd Frank Act impacts systemically important financial institutions.
Recommended Citation
Wilkes, Andrew, "The Dodd-Frank Act's Impact on Systemically Important Financial Institutions" (2016). Honors Theses. 67.
https://egrove.olemiss.edu/hon_thesis/67
Accessibility Status
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