TExES Social Studies Content Practice Exam 2025 – Complete All-in-One Guide to Exam Success!

The significant outcome of the 2008 financial crisis in terms of governance was the triggering of major reforms in financial regulation. The crisis highlighted severe vulnerabilities within the financial system and the inadequate oversight of financial institutions. In response to the economic calamity, governments and regulatory bodies around the world recognized the urgent need to strengthen financial frameworks to prevent future crises.

As a result, comprehensive reforms were introduced, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States. This legislation aimed to increase transparency within the financial sector, enhance consumer protection, and reduce the risk of excessive risk-taking by banks and financial institutions. It established new regulatory agencies and mandates, such as the Consumer Financial Protection Bureau, which aimed to protect consumers from predatory lending practices and ensure more responsible behavior from financial institutions.

The perceived necessity for such reforms stemmed from the collapse of major financial institutions, the expensive bailouts undertaken by governments, and the overall detrimental impact on the global economy. Therefore, the crisis was a catalyst for significant changes in how financial markets are regulated and overseen, emphasizing the importance of robust, proactive governance in sustaining economic stability.