In an effort to restore consumer confidence while laying a foundation for future economic security, the Dodd Frank Wall Street Reform and Consumer Protection Act seeks to put systems and laws in place to prevent the likes of our recent economic crisis from ever happening again.

But what does it mean for you, the consumer? As a Member of the Top 5 in Real Estate Network®, I am committed to keeping you informed by breaking down government programs and laws into the facts you need to know. Passed on June 29, 2010, the Act represents one of the most far-reaching changes to financial regulation and oversight since the Great Depression. Here are the highlights of the Dodd-Frank Act as provided by the United States Senate Committee on Banking, Housing & Urban Affairs:

1. Consumer protections: The Act creates a new, independent watchdog at the Federal Reserve, designed to ensure American consumers receive full transparency when shopping for mortgages, credit cards, and other financial products, and are protected from hidden fees, abusive terms, and deceptive practices.
2. No more bailouts: The legislation claims to put an end to the possibility that taxpayers will ever again be asked to write a check to bail out financial firms that threaten the economy. Such an occurrence will be avoided by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed's authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.
3. Flagging problems in advance: Under the Act, a council will be created to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.
4. Oversight of big-wig salaries: The new legislation intends to provide shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.
5. Keep it all on the books: The Dodd-Frank Act also seeks to strengthen oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefits special interests at the expense of American families and businesses.

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