Dodd-Frank creates a new landscape: the most comprehensive changes to financial regulation in the United States since the great depression were signed into law in July. What's next, and just what does this massive piece of regulation mean for business?

• Author: North, Cady
• Position: FINANCIAL REGULAITON

Dwarfing the size and scope of most other major financial reform and consumer protection efforts, the Dodd-Frank Wall Street Reform and Consumer Protection Act will affect a multitude of industries around the nation. These effects will be felt well beyond the financial services industry, making changes to the way all companies work with credit rating agencies, banks, insurance providers and hedge funds and their regulators.

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Though President Barack Obama signed the law in July, it is yet unclear whether all of the bill's ambitious goals will be met. The next eight to 10 months will be telling, as high-level federal agencies, such as the U.S. Securities and Exchange Commission, the Federal Reserve and the Commodities Futures Trading Commission (CFTC), complete the arduous task of implementing the new law through the drafting and adoption of literally hundreds of rules and regulations. (See sidebar "Size and Scope," on the next page.)

The public has been invited to rigorously comment on this process in hopes of minimizing unintended consequences in the markets. This is wise, considering the rules will carry nearly as much regulatory weight as the law itself.

During his bill-signing speech, President Obama also carefully left the door open to possible legislative changes, saying: "We may need to make adjustments along the way as our financial system adapts to these new changes and changes around the globe." This hint echoes rumblings from Capitol Hill that there may be a follow-up piece of legislation in the near future.

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So what do the reforms in this massive piece of legislation mean for business?

Banking Fees May Increase, Products May Change

Many banks have already begun announcing fee increases and changes in services and more announcements are expected. This is due to a number of increased Federal Deposit Insurance Corporation (FDIC) assessments that are required as a result of permanently increasing the FDIC maximum coverage amount, as well as a specific requirement to increase the FDIC reserve ratio as a way to help pay for the bill's $26.9 billion price tag.

Banks will no longer be prohibited from offering interest on corporate checking accounts, but it's unclear how much banking fee arrangements will change as a result. The Volcker rule will clearly provide more reasons for banks to alter their product offerings and fee structures.

Named for former Federal Reserve Chairman Paul Volcker, it limits the amount of investing banks can do with their own money, as well as new capital ratio requirements put out by the Fed.

New Rules for Derivatives, Pensions and Hedging

Many companies may find that hedging business risks such as interest rates, commodities and foreign exchange using customized derivatives could change with the new law. First, companies will need to register and become familiar with CFTC, which will regulate most of...