Financial CHOICE Act and Rate of return: Difference between pages

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(Update to past tense.)
 
imported>Doug Williamson
(Expand the page for different annual bases of quoting rates.)
 
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''US bank regulation''.
The investor's return on an investment, expressed as a proportion of the amount invested.


A bill to repeal substantial parts of the Dodd-Frank Act, that was not fully enacted.
Most commonly expressed as a percentage.


CHOICE was an acronym for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.


<span style="color:#4B0082">'''Example'''</span>


<span style="color:#4B0082">'''''Dodd-Frank replacement unveiled'''''</span>
GBP 1 million is invested.


:In an ambitious plan to undo the US Dodd-Frank financial reform law, the head of the US House of Representatives banking panel has released a second draft of a replacement act.
GBP 1.03 million is repayable at the end of the period.  


:... Republicans including President Trump believe Dodd-Frank, which has not been fully enacted, is unduly burdensome on banks and businesses, and restricts lending.


:''The Treasurer magazine, May 2017, p8''
The rate of return per period (r) is:


r = (End amount / Start amount) - 1


<span style="color:#4B0082">'''''Financial CHOICE Act died, but parts of it were incorporated into other bills'''''</span>


:This bill would make sweeping changes to the financial regulatory system by revising the changes that were put in place after the 2008-2009 economic crash. The bill would weaken the Consumer Financial Protection Bureau, the Financial Stability Oversight Council, and regulations that prevent commercial banks from trading for their own gain, among other changes.
''Which can also be expressed as:''


:This bill was introduced in a previous session of Congress and was passed by the House on June 8, 2017 but was never passed by the Senate. Provisions of this bill were incorporated into other bills.
r = (End / Start) - 1


:''US GovTrack, accessed May 2020.''
''or''


r = <math>\frac{End}{Start}</math> - 1


== See also ==
* [[Dodd-Frank]]
*[[Too Big To Fail]]
*[[Vickers Report]]
* [[Volcker Rule]]


= <math>\frac{1.03}{1}</math> - 1
= 0.0300
= '''3.00%''' per period
=== Basis of quoting rates of return ===
The rate of return in the example above has been calculated and stated on a periodic basis.
Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.


===Other links===


[http://uk.practicallaw.com/3-502-8950 Summary of the Dodd-Frank Act: Swaps and Derivatives, Practical Law]
== See also ==
* [[Conventional year]]
* [[Effective annual rate]]
* [[Nominal annual rate]]
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]

Revision as of 17:01, 19 November 2015

The investor's return on an investment, expressed as a proportion of the amount invested.

Most commonly expressed as a percentage.


Example

GBP 1 million is invested.

GBP 1.03 million is repayable at the end of the period.


The rate of return per period (r) is:

r = (End amount / Start amount) - 1


Which can also be expressed as:

r = (End / Start) - 1

or

r = <math>\frac{End}{Start}</math> - 1


= <math>\frac{1.03}{1}</math> - 1

= 0.0300

= 3.00% per period


Basis of quoting rates of return

The rate of return in the example above has been calculated and stated on a periodic basis.

Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.


See also

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