WHAT DOES THE REPEAL OF DODD-FRANK MEAN FOR THE PUBLIC MARKET

Presidential candidate Donald Trump promised to repeal Dodd-Frank.  Should Trump follow through on his promise, there will be several significant effects.

First and foremost, since Dodd Frank adds about 10 to 15% to the operating expenses of US banks, the repeal of Dodd Frank would be expected to significantly boost bank stocks. Dodd-Frank places a great responsibility and banks to make sure that borrowers are able to repay the loans. Of course, this provision adds uncertainty to the secondary market, increasing home borrowing costs. Therefore, the repeal of Dodd Frank could probably have a positive impact on developers and other participants in residential real estate.

Together with the repeal of Dodd Frank, it is expected that a more friendly Trump administration would ease some of the onerous requirements applicable to all public companies undergoing IPOs, including XBRL. The general emphasis on deregulation represented by the repeal of Dodd Frank is expected to facilitate the growth of small to medium-size businesses, as well.