What is the primary purpose of the Dodd-Frank Act?

The primary purpose of the Dodd-Frank Act is to promote financial stability in the U.S. financial system. Enacted in response to the 2008 financial crisis, the Act aims to address various issues that contributed to the crisis, such as excessive risk-taking and lack of oversight among financial institutions. It established rigorous regulations for banks and other financial institutions to reduce the likelihood of future financial instability, protect consumers from unfair practices, and improve transparency in the financial marketplace. This comprehensive legislation also created mechanisms to monitor systemic risk and improved the overall resilience of the financial system, ensuring that it can better withstand economic shocks.