The sweeping financial reform bill is now a law. While most people know what it’s supposed to mean for Wall Street banks, fewer, perhaps, understand what it will mean for consumers.
The bill includes measures that will provide the Feds with new power, allow the government to shut down large financial companies on the verge of failure, change the rules on how financial firms engages risky and speculative behavior and give shareholders a greater voice in executive pay, writes Miranda for Financial Highway.
Additional measures that could impact the ways Americans spend include:
- The creation of the Consumer Financial Protection Bureau will bring regulation of consumer financial products and services under one agency. Private student loans will also be under the supervision of the CFPB.
- New mortgage lending rules that will dissuade lenders from lending to people who can’t afford the loan and stop predatory practices seen before the housing bubble.
- All accounts will be permanently insured by the FDIC for up to $250,000. Additionally, consumers are entitled to a free credit score.
- The SEC may decide to force brokers to adhere to the same fiduciary requirements as financial advisors.
- Merchants can now put in place a $10 minimum for credit card purchases and require them to pay cash for small ones.