21.8k views
5 votes
What is the Wall Street Reform and Consumer Protection Act generally known as?

1) Dodd-Frank
2) Sarbanes-Oxley
3) Glass-Steagall
4) Volcker Rule

User Nickyfot
by
7.2k points

1 Answer

2 votes

Final answer:

The Wall Street Reform and Consumer Protection Act is widely known as the Dodd-Frank Act, not to be confused with Sarbanes-Oxley, which was created for different reasons following accounting scandals.

Step-by-step explanation:

The Wall Street Reform and Consumer Protection Act is commonly known as the Dodd-Frank Act. This legislation was enacted in response to the financial crisis of 2007-2008, which saw the failure of major financial institutions such as Lehman Brothers and numerous large commercial banks. Dodd-Frank aimed to majorly reform the financial system and restore Wall Street Reform by increasing transparency and accountability, and to protect consumers.

It's important to note that the Sarbanes-Oxley Act was a different piece of legislation, enacted earlier in 2002, following the accounting scandals of major corporations like Enron and WorldCom. The purpose of Sarbanes-Oxley was to increase confidence in the financial reports of public corporations and protect investors from accounting fraud, thereby enhancing corporate governance and compliance.

User Dan Sorensen
by
7.2k points