Dodd-Frank signed by the President

by Kurt Schulzke

The leviathan Dodd-Frank Wall Street Reform and Consumer Protection Act was  signed by President Obama on July 21, 2010.  In the Senate version of the bill, neither “Wall Street Reform” nor “Consumer Protection” appeared in the bill’s title, a fact not lost on Iowa Senator Chuck Grassley who opposed it:  “It’s a bill that most of Wall Street wants passed.  And that’s the last thing Iowans expect in any real reform bill.”

My brief analysis of the securities whistleblower provisions, in Act Section 922, suggests that the SEC should brace for a deluge of securities fraud claims.  These claims will take years to work through the system but the process holds out some hope that securities whistleblowers may receive some compensation for their efforts to bring fraud to light.  It’s a step in the right direction.

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