What does the Dodd-Frank Act primarily aim to address?

The Dodd-Frank Act primarily aims to address government oversight of financial markets in response to the financial crisis of 2008. Enacted in 2010, the Act introduced comprehensive reforms intended to improve the regulation of the financial sector, enhance consumer protection, and prevent the kinds of risky financial practices that contributed to the economic downturn.

Key provisions of the Dodd-Frank Act include the establishment of the Consumer Financial Protection Bureau (CFPB) to oversee and enforce consumer protection laws, the implementation of stricter regulations on banks and financial institutions, and increased transparency particularly in derivatives trading. The overall goal is to foster stability in the financial system and to ensure that government agencies have the necessary authority to monitor and regulate financial markets effectively.

The other options focus on more specific aspects of finance that are not the primary focus of the Dodd-Frank Act. While investment broker fees and banking interest rates are indeed important in the financial landscape, the Act’s broader aim is centered on regulatory oversight to prevent future crises, rather than addressing these specific regulatory areas. Stock price manipulation, while a serious concern, falls under the existing regulatory frameworks and is indirectly impacted by the enhanced oversight provided by the Dodd-Frank legislation.