Question

Survey empirical evidence to discuss the impact of government regulations (e.g., Sarbanes–Oxley Act of 2002 and Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010) on corporate operation and financial performance.

Please provide discussion of the above topic and citation of resources.

Thanks!!

Answer 1

In 2002, Congress passed the Sarbanes-Oxley Act (SOX), which protects whistleblowers who report violations of securities laws. In July 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Dodd-Frank amended SOX in several respects, significantly increasing the protections available to whistleblowers in the financial services industry. 2002, Congress passed the Sarbanes-Oxley Act (SOX), which protects whistleblowers who report violations of securities laws. In July 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Dodd-Frank amended SOX in several respects, significantly increasing the protections available to whistleblowers in the financial services industry.

Under Dodd-Frank, which applies to both public and privately held companies, an employer cannot retaliate against an employee for disclosing any information that is protected or required under SOX; the Securities Exchange Act of 1934; and any other law, rule or regulation subject to the jurisdiction of the Securities and Exchange Commission. Dodd-Frank also protects employees who report truthful information relating to federal crimes. An employee who prevails under Dodd-Frank may receive up to twice the amount of wages lost due to retaliation, as well as attorneys’ fees. Dodd-Frank also allows for a whistleblower to receive cash awards between 10% and 30% of amounts that the SEC recovers based on the whistleblower’s report.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008. Named after sponsors U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank, the act's numerous provisions, spelled out over roughly 2,300 pages, are being implemented over a period of several years and intended to decrease various risks in the U.S. financial system. The act established a number of new government agencies tasked with overseeing various components of the act and by extension various aspects of the banking system. President Donald Trump has pledged to repeal Dodd-Frank, and on May 22, 2018, the House of Representatives voted to roll back significant pieces of Dodd-Frank

The CFPB also governs other types of consumer lending, including credit and debit cards, and addresses consumer complaints. It requires lenders, excluding automobile lenders, to disclose information in a form that is easy for consumers to read and understand; an example is the simplified terms you'll find on credit card applications.