Question

The Dodd-Frank Act created a federal body with some limited regulatory authority. For example, the organization can represent the federal government in international negotiations regarding insurance and it can preempt state law where it conflicts with negotiated international agreements. This body is called the ________?

1) Federal Reserve
2) Securities and Exchange Commission
3) Consumer Financial Protection Bureau
4) Office of the Comptroller of the Currency

Answer 1

The federal body with limited regulatory authority created by The Dodd-Frank Act, which can represent the U.S. in international insurance negotiations and preempt state law, is the Office of the Comptroller of the Currency (OCC).

Step-by-step explanation:

The federal body created by The Dodd-Frank Act with limited regulatory authority is the Office of the Comptroller of the Currency (OCC). This organization can represent the federal government in international negotiations regarding insurance and has the power to preempt state law in cases where it conflicts with negotiated international agreements. The Dodd-Frank Act was designed to increase the regulation of the financial industry post the 2008 financial crisis, not dissimilar to earlier regulatory efforts like the Glass-Steagall Act establishing the FDIC to ensure depositor confidence and the creation of the SEC to oversee Wall Street.

The other options given, such as the Federal Reserve, the Securities and Exchange Commission (SEC), and the Consumer Financial Protection Bureau (CFPB), serve different functions within the financial system. The Federal Reserve, for instance, supervises bank holding companies and is also involved in some financial regulations. However, the correct answer to the question - 'The Dodd-Frank Act created a federal body with some limited regulatory authority... This body is called the ________?' is the Office of the Comptroller of the Currency (OCC).