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The financial crisis of 2007–2010 led to widespread calls for changes in the regulatory system. The Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly known as Dodd–Frank) was signed into federal law by President Barack Obama on July 21, 2010. Passed as a response to the 2008 Global Financial Crises, it brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the 1930s Great Depression. It changed the American financial regulatory environment affecting all federal financial regulatory agencies and almost every part of the nation's financial services industry.

The law was initially proposed by the Obama administration in June 2009 but later revised versions were introduced in the House of Representatives by the then Financial Services Committee Chairman Barney Frank, and in the Senate Banking Committee by former Chairman Chris Dodd.

President Obama said that the Bill included 90% of the reforms he had proposed and the primary components include:

1.Consolidation of regulatory agencies, elimination of the national thrift charter, and new oversight council to evaluate systemic risk

2.Comprehensive regulation of financial markets, including increased transparency of derivatives (bringing them onto exchanges)

3.Consumer protection reforms including a new consumer protection agency and uniform standards for "plain vanilla" products as well as strengthened investor protection

4.Tools for financial crises, including a "resolution regime" complementing the existing Federal Deposit Insurance Corporation (FDIC) authority to allow for orderly winding down of bankrupt firms, and including a proposal that the Federal Reserve receive authorisation from the Treasury for extensions of credit in "unusual or exigent circumstances"

5.Several measures aimed at increasing international standards and cooperation including proposals related to improved accounting and tightened regulation of credit rating agencies.

At President Obama's request, Congress later added the Volcker Rule which prohibits depository banks from proprietary trading, similar to the prohibition of combined investment and commercial banking in the Glass–Steagall Act. The rule permitted banks to invest up to 3% of their Tier 1 capital in private equity and hedge funds as well as trade for hedging purposes.