# Welcome back, Glass-Steagall?

1 Opinion November 15, 2016 Financial News ![Roy C. Smith](/sites/default/files/styles/246w/public/assets/images/uat_025572.jpg?itok=Kn4Ckx0s) By Roy C. Smith > The argument supporting repeal is that Dodd-Frank has proven to be vastly more complex and expensive than expected.

**Based on comments last week by Donald Trump, “dismantling” the Dodd-Frank Act of 2010 will be among the first things attempted. What would that mean?**

Trump’s position on banks has never been one to encourage them. He has railed against bailouts and the easy treatment of bankers. He is for breaking up the banks and agreed with Senator Bernie Sanders that the Glass-Steagall Act of 1933, that forced a separation between the banking and securities businesses, should be restored.

But he was never a supporter of Dodd-Frank. It was too much regulation, too complex, too expensive and too stifling of banks’ important role in extending credit to business. The Republican Party Platform that he ran on (and largely dictated) called for Dodd-Frank to be repealed and Glass-Steagall reintroduced.

The argument supporting repeal is that Dodd-Frank has proven to be vastly more complex and expensive than expected ($36 billion to date, according to one estimate) and is no longer necessary now that the capital adequacy rules of Basel III have come into effect and the Federal Reserve has developed its stress tests and other rules to tighten its control over the banks.

Read full article as published in [Financial News](http://www.efinancialnews.com/story/2016-11-15/donald-trump-dodd-frank-glass-steagall).

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*Roy C. Smith is the Kenneth G. Langone Professor of Entrepreneurship and Finance and a professor of Management Practice.* ## More Opinions from Roy C. Smith

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