With the new financial reform bill finally signed by President Obama, there is plenty for consumers to be buzzing about.
We’ve already gone over some of the basics when it comes to the Dodd-Frank bill. After two long years, we are finally starting to see some progress in financial regulation and headway in the push for financial literacy. To recap: The bill highlights cracking down on misleading mumbo-jumbo, banning banks and financial institutions from using anything that might confuse consumers, such as misleading fine print and hidden fees. New regulations are intended to strengthen the rules of transparency. This means that your money-saving and consumer decisions are better protected. Opening a checking and savings account can be done with greater security, as lenders will be held accountable. Also, mortgage lenders must confirm a borrower's ability to pay back the loan. (Before the bill, the borrower didn't have to provide proof of income. These lending practices were a key cause of the U.S. financial meltdown.) But now, as the bill is finally in place, we wonder if everyone is happy with the result.
Some are optimistic, but on the other side of the fence are those that think the bill doesn’t go far enough to prevent future taxpayer-funded bailouts of Wall Street firms. They also believe that it creates an unnecessary new bureaucracy in the consumer bureau. Some say that the bill is a vast overreach of government power that will do little to prevent future bailouts of failing financial institutions.
What's on the minds of consumers? According to the Bloomberg National Poll this month, more than three-quarters of Americans say they don’t have much or any confidence the proposal will make their savings and financial assets more secure.
What do you think? Are you confident that the bill will be able to prevent another economic crisis? Leave us a comment.