Dodd Frank Flashcards
(4 cards)
2
Q
What is considered the biggest change to financial regulation since the Great Depression of the 1930s?
A
The Dodd-Frank Wall Street Reform Act of 2010
3
Q
What is the goal of the Volcker Rule?
A
Banking Institutions maintain healthy capitalization ratios
4
Q
How does the Volcker Rule limit banking institutions?
A
Limits banking institutions from owning more than 3% of a hedge fund’s total ownership interest
Limits banking institutions from owning interests in hedge funds that exceed 3% of their Tier 1 capital (Common Stock + Retained Earnings + non-redeemable, non-cumulative Preferred Stock)
5
Q
What does the Volcker Rule require banking institutions to disclose?
A
Relationships with hedge funds must be fully disclosed to regulators
