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Flashcards in Dodd Frank Deck (4)
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1
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

2
Q

What is the goal of the Volcker Rule?

A

Banking Institutions maintain healthy capitalization ratios

3
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)

4
Q

What does the Volcker Rule require banking institutions to disclose?

A

Relationships with hedge funds must be fully disclosed to regulators