system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What is the Dodd Frank bill?
gpt
The Dodd-Frank bill is a US federal law, proposed by then-president Barack Obama in response to the economic crisis of 2008.  This crisis is generally regarded as being caused by poor lending practices by banks, among other issues.  Then-president George W. Bush "bailed out" several banks, lending them hundreds of billions of dollars of government money.  The Dodd-Frank bill greatly reduced the amount of money the Bush government had set aside for lending to the failed banks, and specified how this money could be used - insisting that it be used for stabilizing the businesses rather than expanding them.  This was done to keep taxpayers' money from being "gambled" away by the banks which had proven themselves prone to poor business decisions.

The Dodd-Frank Act also includes many other provisions, aimed at ensuring that a similar economic crisis would not occur again:

* New agencies are created whose job it is to keep an eye on the economy and try to detect impending crisis before it occurs.  This includes monitoring of both the banking industry and the insurance industry, among others.  Other agencies are abolished or combined.
* A fund is set up to repay a bank or insurance company's debts if it fails, including customers' bank accounts.  This fund is paid for by extracting fees from any financial business worth over $50 billion.
* Banking executives have been required to register with the government and provide reports on their activities since 1940.  Dodd-Frank increases the number of executives required to register and report, and increases the information they must report.  This is meant to help the government predict impending economic crisis.
* Investment businesses are prohibited from certain types of investment, in particular *proprietary trading*.  Proprietary trading is a practice where the investment business invests its own money, instead of investing its customers money.  Proprietary trading is frowned upon because it does not benefit the customers, it is seen as risky, and it may create conflicts of interest (the business could profit at the expense of its customers).
* The practice of "selling debt," which is seen as a cause of the 2008 economic crisis, is regulated and subject to government approval.
* The powers of the Securities and Exchange Commission (SEC) are expanded.  The SEC is a government agency in charge of oversight of some of the finance industry.  At the same time, stricter requirements are placed on the SEC, ensuring that it is performing its oversight correctly.
* Grants are created to help poor people establish bank accounts or take out small loans.
* Mortgages (money loaned so people can buy a house) are regulated.  Banks are prohibited from loaning money to people who are unlikely to pay it back.  Banks are prohibited from charging exorbitant rates, unfair penalties, etc.  Values of houses must be appraised by a professional to make sure that the money loaned matches the price of a house.