BUSINESS LAW II - Essay Example
In other words, http://write-my-paper-for-cheap234673.mystrikingly.com/ if any financial institution fails, not the customers and taxpayers will bear the cost of such failed financial institutions but Wall Street.
Additionally, bad debts will be dropped since banks among other financial institutions will be restrained from incurring unforeseen financial risks. This means that nearly all borrowers will be evaluated thoroughly to minimize obvious defaults. Notably, the Dodd-Frank Wall Street and Consumer Protection Act of 2010 works with the Consumer Financial Protection Bureau (CFPB) that ensures that financial institutions have high financial standards that they uphold at all time of their operations (Berson and Berson, 2012). It is also worth noting that the retained percentage will also minimize the losses incurred by financial institutions in case of defaulters.
