Question

Discuss the financial-crisis management tools and strategies of the US government. How have those been transformed by Dodd-Frank?

Answer 1

The financial crisisconstriction of management tools and strategies of the US government has a lot of things to be explained. Dodd-Frank changed the parameter of this crisis by creating bothy new authorities for bank regulators to act on their own while also restricting using prior tools to require Congressional approval. There is renewable debate overwhether the constriction of regulatory authority outweighs the progres made in dodd-frank. Dodd-Frank substantially improved regulators options. where restrictions continue to occur on regulators, it is imprtant to appreciate the political context as to why they put in place.In the last financial crisis government actors of both parties and in multiple branches, answeredyes to the age old quandary and took radicall unpopular actions that prevent great recession from becoming great depression.Dodd-FRANK fixed that by creating a comprehensive legal framework called orderly liquidation authority and giving that authority to FDIC.This change was advancement and is a core element of Dodd-Frank efforts to repeal it.