What is the Dodd-Frank Act and why was it passed? What major points does Dodd-Frank emphasize?

What will be an ideal response?

Answer: In the years following the 2008 financial meltdown, Congress put a high priority on instituting changes designed to prevent another calamity of that magnitude. The most significant legislative response was the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd-Frank Act for short. Opinions on Dodd-Frank are sharply divided. No one, however, disputes that the multiple provisions of this complex legislation will substantially affect banking and other financial services. Here is a broad outline of the bill's major points of emphasis:
Monitoring for systemic risk. A key problem in the 2008 meltdown was the spread of risk from individual companies to the rest of the financial sector and from there to the overall economy. Therefore, Dodd-Frank created the Financial Stability Oversight Council to monitor for systemic risks that affect a significant portion of the economy.
Protecting consumers. The new Bureau of Consumer Financial Protection within the Federal Reserve is tasked with making sure consumers get clear and accurate information about financial services and protecting them from "hidden fees, abusive terms, and deceptive practices."
Closer scrutiny of the derivatives market. This huge and largely unregulated market played a key role in the crisis. Dodd-Frank aims to provide more transparency and accountability in the markets for derivatives, hedge funds, and other financial products.
Ending taxpayer bailouts of companies deemed "too big to fail." Some financial companies cast such a large shadow over the economy that their failure was considered a threat to the stability of the entire economy, leading to multibillion-dollar government bailouts. Dodd-Frank seeks to prevent bailouts of individual firms, although it allows the government to make moves to support the overall banking industry, if needed.
Tougher regulation of credit rating agencies. In an effort to protect investors from unreliable credit ratings, the bill provides more vigorous rules regarding transparency and accountability of credit rating practices.
Prohibiting commercial banks from speculative trading activity. Known as the "Volcker Rule" (named after former Fed chairperson, Paul Volcker), this measure aims to stop banks from making risky trades that could undermine their financial stability and thereby put their customers at risk.