As the result of problems allegedly attributed to the 2008 financial crisis, and the perceived contribution to that crisis by the financial industry, Congress has passed, and the President has signed, legislation in major overhaul of the financial industry. Much of the "workout" of this legislation will be developed only after regulations are implemented to interpret and enforce the new law’s provisions.

Although geared largely toward the financial industry, the new law has wide application and importance to the average citizen. For example, the increased protection for bank deposits and savings accounts has become permanent. During the financial crisis, the Federal Deposit Insurance Corporation (FDIC) increased the federal insurance on a temporary basis, from $100,000.00 to $250,000.00, for all deposit accounts in FDIC-insured facilities. The new $250,000.00 limit, scheduled to expire at the end of 2010, and then extended to 2013, now becomes permanent. As a result, citizens with deposits do not have to plan on re-investing or re-depositing bank accounts to maintain the maximum protection in anticipation of the increased limit expiring.

Further, there is a requirement for underwriters of derivative instruments, that is investments that are based on the value of other investments, that the derivatives must now be traded on a public exchange and the trades must be cleared through a registered facility. Non-standard derivatives can still be traded privately, but must be reported to a central authority to increase the regulator’s ability to review the level of activity.

Credit rating firms will be subject to oversight by the Securities and Exchange Commission, and investors will now have right to sue an agency issuing ratings known to be inaccurate, or which the rating agency should have known were inaccurate. Hedge funds and private equity firms will have to be registered with the Securities and Exchange Commission. Further, the law provided that certain "accredited investors", including those with a $1 Million net worth, did not require as much disclosure about investments, based on the logic that the wealthy have more access to information and professional services, and have experience to better protect their own interests. Determining the $1 Million net worth threshold will no longer include an investor’s principal residence. Furthermore, in anticipation that many investors lose money, the threshold will have to be reviewed every four years to see whether a credit investor still maintains the level of assets required.

There is also a curb on lending practices. The Act requires originators of residential mortgages to disclose any conflict of interest, and to disclose comparable costs and benefits of mortgages offered to a prospective borrower. Lenders must verify, whether based on income, credit history or other personal data, that the borrower has the reasonable ability to re-pay the loan, along with all other associated expenses, such as insurance, taxes and maintenance. This will mean that self-employed people, or anyone whose income is undocumented or irregular, will require better documentation to qualify for a loan. Lenders will no longer be able to compensate loan officers with incentives to induce them to higher profit financial instruments or mortgages, simply to increase their own commission. Prepayment penalties will be more limited, and a holder of an adjustable rate mortgage must receive notice of a proposed interest rate change six months in advance to allow that borrower the opportunity to re-finance elsewhere.

Homeowners who are unable to make their mortgage payments because they have lost their jobs, or because of a personal emergency for medical reasons, can qualify for up to $50,000.00 in assistance, obtained through the U.S. Housing and Urban Development (HUD) existing Emergency Mortgage Assistance Fund.

Banks will also be required to maintain healthier reserves, retaining at least 5% of their loans as capital.

The new Act brings sweeping changes that require compliance by financial institutions and will provide benefit to the average investor or depositor.