Introduction The latest financial crisis between 2007 and 2012, was the worst of the 20th and the 21st century after the great depression of 1930’s according to economists. The recent financial crisis was mainly felt in2007 and 2008 and with the other four years following being tasked with living in the shadow of the crisis and trying to recover from it. It not only hit the U.S.A but it was a global crisis which affected Europe leading to the Euro crisis in 2008 and also threatened a reoccurrence of the Asian 1997 crisis. The financial crisis affected the economy at large and was largely blamed on the cheap housing policies enacted encouraging homeownership, lax lending habits among others. The financial crisis of 2007 started with the collapse of the Northern Rock British bank in August 2007. The tax lending rates of mortgages that followed the 2004 70% increase in homeownership led to lenders in early 2007 to file for bankruptcy as the home prices had fallen so low in between 2005 and 2007 leading to homeowners falling back on their mortgages and the lenders would not get the full value of the house due to the decline in market prices. The federal funds rate which was 4.75% in 2007 was reduced to 1% in order to cushion the crisis in 2008. this led to different policies being enacted in order to salvage the economy which was spiraling down the drain. Policies such as: The Dodd and Frank act of 2010 Economic Stimulus Act of 2008 American Recovery and Reinvestment Act of 2009 The unemployment insurance policy 2 THE DODD AND FRANK ACT OF 2010Effects TargetedShort-run effectsIt was meant to safeguard against excessive risk investment: this was in respect to Wall-Streets behavior of investors investing in risky projects. The short-run effects are mainly felt by the consumer and short-term investors. This is through; Wall-Streets accountability Regulatory system in mortgages and lending servicesEnsure Wall-Street was accountable; Wall-Street was being bailed out by the government due to its failures.Protect families form exploitative financial activities Consumer protection People in Wall-Street took huge risk endangering the economy. And due to the governments failure of checks on balances in Wall-Street this went on for some time before it led to the depression and the financial crisis. It was then left upon the federal government to bail it out. This act proposes a transfer of liability from the government back to Wall-Street and accountable measures put in place. The short-run effects have helped in the accountability of Wall-Street, this will lead to short-term investors being more aware of their role in Wall-Street and what they shouldn’t do. The Consumer Financial Protection Bureau was created in ensuring that consumer interests are taken into account and that individuals out to take loans and mortgages are not buried in paper work that would be confusing for some one who is not an educ.