Dodd-Frank: Title XI is a legislation that introduces modifications to the Federal Reserve System, which functions as the nation’s bank. This law grants the government the authority to oversee the operations of the Federal Reserve and ensure their compliance with regulations. Additionally, it permits the Federal Reserve to provide emergency loans to banks, but only if the banks possess sufficient collateral to repay the loan. Furthermore, the law establishes the role of Vice Chairman for Supervision, who assists in ensuring the Federal Reserve’s effective performance. In summary, this legislation safeguards the responsible conduct of the Federal Reserve and mitigates the potential risks that could adversely impact the economy.
Title XI of the Dodd-Frank Wall Street Reform and Consumer Protection Act grants the Comptroller General of the United States the authority to audit the Federal Reserve Board, banks, and credit facilities. This provision enables an independent auditor to assess the operations of the Federal Reserve, ensuring compliance with proper procedures and preventing any inappropriate activities. Consequently, Title XI enhances supervision of the Federal Reserve’s activities, safeguarding the public’s interests and preventing any potential harm to the economy or financial markets.
Dodd-Frank Title XI is a section of the Dodd-Frank Wall Street Reform and Consumer Protection Act that focuses on the Federal Reserve System provisions.
The key provisions of Dodd-Frank Title XI include the establishment of the Office of Financial Research, the creation of the Financial Stability Oversight Council, and the implementation of enhanced prudential standards for large financial institutions.
The Office of Financial Research is a federal agency created by Dodd-Frank Title XI that is responsible for collecting and analyzing financial data to support the work of the Financial Stability Oversight Council.
The Financial Stability Oversight Council is a federal agency created by Dodd-Frank Title XI that is responsible for identifying and addressing risks to the stability of the U.S. financial system.
Enhanced prudential standards are regulations that require large financial institutions to maintain higher levels of capital, liquidity, and risk management than smaller institutions.
Financial institutions with more than $50 billion in assets are subject to enhanced prudential standards.
The purpose of enhanced prudential standards is to reduce the risk of financial instability by ensuring that large financial institutions are better able to withstand economic shocks.
Financial institutions that fail to comply with enhanced prudential standards may be subject to enforcement actions, including fines and other penalties.
Dodd-Frank Title XI is designed to promote financial stability, which can benefit consumers by reducing the risk of financial crises and protecting their investments.
Dodd-Frank Title XI has been implemented through a series of rulemakings and guidance issued by the Federal Reserve and other federal agencies.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/dodd-frank-title-xi-federal-reserve-system-provisions/
- Modern Language Association (MLA):Dodd-Frank: Title Xi – Federal Reserve System Provisions. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/dodd-frank-title-xi-federal-reserve-system-provisions/.
- Chicago Manual of Style (CMS):Dodd-Frank: Title Xi – Federal Reserve System Provisions. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/dodd-frank-title-xi-federal-reserve-system-provisions/ (accessed: May 09 2024).
- American Psychological Association (APA):Dodd-Frank: Title Xi – Federal Reserve System Provisions. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/dodd-frank-title-xi-federal-reserve-system-provisions/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts