BUSINESS LAW II Essay Example | Topics and Well Written Essays - 250 words

BUSINESS LAW II - Essay Example In other words, 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. The Dodd-Frank Wall Street and Consumer Protection Act of 2010 and its components seems not to be favoring financial institution since it does not provide bail out for financial institutions during rough economy, rather, the government will shut down them down as they will be considered as failed