The Dodd-Frank Act's Impact on Systemically Important Financial Institutions

Wilkes, Andrew (2016) The Dodd-Frank Act's Impact on Systemically Important Financial Institutions. Undergraduate thesis, under the direction of Bonnie Van Ness from Finance, University of Mississippi.

Dodd-Frank Act's Impact on Systemically Important Financial Institutions by Andrew Wilkes.pdf

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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.

Item Type: Thesis (Undergraduate)
Creators: Wilkes, Andrew
Student's Degree Program(s): B.B.A. in Managerial Finance
Thesis Advisor: Bonnie Van Ness
Thesis Advisor's Department: Finance
Institution: University of Mississippi
Subjects: H Social Sciences > HG Finance
Depositing User: Mr. Andrew Wilkes
Date Deposited: 13 May 2016 13:42
Last Modified: 13 May 2016 13:42

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