The Financial Reform Act of 2010 did all of the following except:
A) strengthened the standards required to obtain a mortgage.
B) required more disclosures by financial institutions regarding the quality of the underlying assets when they sell mortgage-backed securities.
C) required savings institutions to sell off any holdings of junk bonds and prohibited them from investing in junk bonds in the future.
D) established the Consumer Financial Protection Bureau.

Question

Quizplus · Accepted Answer

The Financial Reform Act of 2010 did not require savings institutions to sell off any holdings of junk bonds or prohibit them from investing in junk bonds in the future. This statement is incorrect. The Act did require stronger standards for obtaining a mortgage, increased disclosures in the sale of mortgage-backed securities, and established the Consumer Financial Protection Bureau.

The Financial Reform Act of 2010 Did All of the Following