The impact of Dodd Frank on the Wall Street Investment Banks is being thoroughly analyzed, but what is not being analyzed is the impact of Dodd Frank on the average American family, small businesses, the small credit unions, or regional/local banks. This is in no way something that can just be overlooked. The US GAO (Government Accountability Office) has no answer for us as well. The mere fact is, that there are some aspects of Dodd Frank that will help them significantly, while some rules/requirements of the new Dodd Frank rule may impact them in a much more negative way than the larger Wall Street banks. In a time when there has been a significant decrease in local credit unions and local banks (along with small businesses) the implementation of such a rule with such uncertain outcomes to the “backbone” of our economy is absurd. The simple fact of the matter is, Dodd Frank was rushed to get pushed through and since the creation of it, it has had NUMEROUS holes poked in it and they are already talking about major reforms to the rule.
One of the main issues with the implementation of Dodd Frank to local credit unions and banks would be the increased regulations on the mortgage business. This rule would impact the costs of the mortgages and in return possibly lessen the amount/restrictions on mortgages lent out per year. In turn, many people seeking the American Dream of owning a home may be rejected due to the new rule. I believe that the small businesses and local banks need to express their outrage for the blatant disregard those implementing this bill have for the potential impact on small businesses and local banks/credit unions. The best way to do this would be to have the banks literally go on strike or protest in demand for the regulations on major wall street banks and their businesses to be separate entities from now on.