September 29, 2017
- Based upon the 2007-2009 financial crisis and the Dodd-Frank Act, the U.S. Government Accountability Office studied the use of the financial industry’s use of swaps. Swaps occur through financial contracts (derivatives) where two parties trade payments rooted in an asset price or other value. The use of swaps is governed by Section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act allows individuals and institutions to register as swap dealers; however, each are required to abide by specific rules which determine their eligibility to receive federal financial assistance.