Marketing of Minerals

1. EVALUATE THE IMPACTS OF THE FRANK DODD ACT AND
HOW IT RELATES TO ORE DISPOSAL
MASIMBA B MLAMBO R1814208M
JOCELYNE TAFIRENYIKA R197471J
TINOTENDA B MAHEWU R194716R
KELVIN CHAPFIKA R191954B
FUNGAI DUBE R

2. DEFINITION
• AN ACT TO PROMOTE THE FINANCIAL STABILITY OF THE UNITED STATES BY
IMPROVING ACCOUNTABILITY AND TRANSPARENCY IN THE FINANCIAL SYSTEM,
TO END “TO BIG TO FAIL”,TO PROTECT THE AMERICAN TAX PAYER BY ENDING
BAILOUTS, TO PROTECT CONSUMERS FROM ABUSING FINANCIAL SERVICES
PRACTICES, AND FOR OTHER PURPOSES.

3. IMPACTS OF THE FRANK DODD ON THE
INTERNATIONAL MARKET
• CLEAR WINS
• CLEAR LOSSES
• COSTLY TRADE OFFS
• UNFINISHED BUSINESS
• TO SOON TO TELL

4. CLEAR WINS
• this term is used for areas in which the Frank Dodd act has either increased both
economic growth and financial stability or enhanced one of them at a minimal cost
to the other.
• THIS IS SUBDIVIDED INTO
1. HIGHER CAPITAL REQUIREMENTS
2. SINGLE POINT OF ENTERY (SPOE)
3. CREATION OF CFPB (CONSUMER FINANCIAL PROTECTION BUREAU)
4. DERIVATIVES EXCHANGE AND TRANSPARENCY

5. CLEAR LOSSES
• these are areas where Frank Dodd has either harmed both financial stability and economic growth
or was detrimental to one with limited gain to the other. two new restrictions fall into this category:
federal reserve to make emergency loans available to an entire category of institutions rather than a
single firm, and forcing the fdic to seek and obtain a joint resolution from congress before
providing temporary liquidity guarantees on certain kinds of debt.
RESTRICTIONS ON FEDERAL RESERVE AND FDIC CRISIS AUTHORITY
• Dodd Frank act, made provisions which included a move to ban the fed from providing emergency
loans to a single firm, as it did in 2008 with aig and bear stearns. instead, these loans must be
offered through programs with “broad-based eligibility”—that is, they must be made available to a
category of institutions rather than on a one-off basis to a single company. this provision is
intended to prevent future bailouts of financial institutions and, by extension, to reduce the moral
hazard created by industry expectations of future bailouts. these are laudable goals, but the new
restriction in Dodd Frank on the fed’s lending authority is potentially a threat to financial stability
and could, perversely, exacerbate moral hazard issues

6. COSTLY TRADE OFFS
• other provisions are harder to assess, and seem to achieve some benefits but
with significant costs to efficiency and economic growth. in particular, the
volcker rule, which bans commercial banks from engaging in proprietary
trading, and the lincoln amendment, which prohibits entities engaged in swaps
from receiving federal assistance, create costly trade-offs. critics have
complained that the volcker rule is complex, ambiguous, and expensive, making
it difficult for banks to adhere to its requirements and for regulators to
implement and oversee it. others suggest that the lincoln amendment’s goals
can be achieved by the volcker rule, making the lincoln amendment redundant
and its cost and regulatory burdens unnecessary.