Foreclosures

WHY IT MATTERS: Wall Street regulation

THE ISSUE: The financial crisis that struck in 2008 touched off the worst recession since the 1930s Great Depression, wiping out $11 trillion in U.S. household wealth and leaving about 8 million Americans jobless. More than 5 million families lost their homes to foreclosure. Reckless trading and aggressive practices on Wall Street in the prior boom years were pinned with much of the blame.

In the aftermath, Congress enacted an overhaul of financial rules aimed at preventing another meltdown and multibillion-dollar taxpayer bailout of banks. The 2010 Dodd-Frank law gave regulators new oversight powers and tools to shut banks without resorting to bailouts. Risky lending was...

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