The Dodd-Frank Wall Street Reform and Consumer Protection Act is a sweeping legislative overhaul signed into law in 2010 to address the financial crisis of 2007-2010. It aims to improve financial stability and protect consumers by regulating financial institutions more rigorously.
A Hedge Fund is an unregulated pool of investment money, sometimes invested in real estate. By operating outside of financial regulatory requirements applicable to banks or mutual funds, hedge funds may gain investment opportunities that are superior to regulated entities. Annual fees for hedge fund managers are generous, typically 2% of assets plus 20% of profits.
The Shadow Banking System refers to the network of financial intermediaries that operate outside the traditional banking system and its regulatory framework.
