President Barack Obama on Wednesday made official the most industry-changing financial reform bill since the 1930s, signing the Dodd-Frank Wall Street Reform and Consumer Protection Act into law.

The bill, which made its way through Senate votes last week to practically assure its passage, will tighten government regulations on the financial industry. Obama said the act would create “a new consumer watchdog with just one job: looking out for people — not big banks, not lenders, not investment houses — looking out for people as they interact with the financial system.”

Among the changes brought by the bill:

  • The government will provide more consumer protection by keeping closer watch over lenders and investment banks and separating the government from the industry more clearly
  • Obama’s plan guarantees there will be no more big bank bailouts
  • The interchange fees banks charged retailers on credit and debit card purchases will be limited
  • Mortgages will be tougher to qualify for under the stricter regulations, to protect against another real estate bubble
  • Consumers will have easier access to their credit score information and less chance of having their rates raised drastically set out to get the opinions of some everyday Americans on the financial reform bill. Check out their responses in the video below:

For the official word on the new act, check out this video from The White House, titled “What Wall Street Reform Means For You.”  This instructional video explains what’s in store for Americans with the new act:

For more information on the Dodd-Frank Wall Street Reform and Consumer Protection Act, click here.

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Simon Zhen

Simon is a research analyst for MyBankTracker. He is an expert on consumer banking products, bank innovations and financial technology.
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