This is a United States federal law - enacted in July 2010 - by Financial Stability Oversight Council (FSOC). It places regulation of the financial industry in the hands of the government.
It aims to prevent another recession and eliminate the need for future taxpayer-funded bailouts:
- By breaking up any companies that are “too big to fail.”
- By requiring banks to have “funeral plans” for a swift and orderly shutdown in the event that the company goes under
- By containing a whistle blowing provision, wherein persons with original information about security violations can report said information to the government for a financial reward
- By creating Consumer Financial Protection Bureau (CFPB) which consolidated the consumer protection responsibilities of a number of existing bureaus, including the Department of Housing and Urban Development, the National Credit Union Administration and the Federal Trade Commission
CFPB aims to save the common people from the large banks by: the interests of common people by:
- stopping risky lending or other business practices that might harm the consumer.
- providing consumers with access to truthful information about mortgages and credit scores
- providing consumers with twenty-four hour toll-free consumer hotline to report issues with financial services
Given that background, the big question for you (assuming that you are a software IT technocrat working for a financial organization also operating in USA) is
- Does this act impact your bank?
- If yes, which parts of the bank does it impact?
- What is the impact on the technology products in those parts of the bank?
- Can those impacts (assuming they are in different technology systems) be collated into one project, one / similar tech stack and delivered in a better, faster, cheaper way?
Leaving with that food for thought.
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