REALTORS Say Treasury 'BluePrint' Causes Financial Concern
Banks in Real Estate Controversy Picks Up Steam with Paulson Plan
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The National Assn. of REALTORS®, in a letter to U.S. Secretary of the Treasury Henry Paulson, expressed opposition to the “Blueprint for a Modernized Financial Regulatory Structure,” which would permit banking conglomerates to engage in the commercial activity of real estate brokerage and management, and asked the Treasury to withdraw this proposed rule.
“The blueprint makes extremely ambitious recommendations, most of which, as you have acknowledged, will require many years of debate and refinement,” said NAR President Dick Gaylord. “The immediate response to the blueprint from those potentially affected confirms that the subject is one of great importance and controversy.”
NAR has opposed mixing banking and commerce for fairness and financial soundness reasons, which the current law prohibits. The association is extremely disappointed that this recommendation asks Congress to repeal the national policy against mixing banking and commerce and authorizes holding companies to own both insured depository institutions and commercial firms. “This poses a direct conflict of interest and offers unfair advantages,” said Gaylord in earlier communications.
NAR also questions whether it is good public policy to concentrate oversight of all insured depository institutions under one prudential financial regulator. As one example, Gaylord noted, “Requiring state banks to also have a federal charter will have the effect of weakening and very likely killing the state bank option under the dual banking system that dates back to the Civil War era.”
NAR has strongly opposed an earlier Treasury Department and Federal Reserve Board rule that was jointly published in 2001, which would allow financial holding companies and financial subsidiaries of national banks to engage in real estate brokerage and real estate management. “The current crisis in the credit markets and the strain on the banking system support our view that banks should not engage in any commercial activities. Allowing bank conglomerates to divert their focus from financial activities onto commercial activities will do nothing to strengthen the nation’s financial system,” Gaylord said.
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To have it all..... Look at Wal-Mart or Home-Depot for an example of the implications of Banks in the Real Estate business. How many small hardware stores are left now ?
How many small corner markets are left now ?
And when the Banks become Real Estate brokers how many small companies will be left to keep it all in check. The prices will of course be lower at first until all the little guys are gone and then the choices will be limited to the same handful of big companies that have the control on the majority things in our country. Then its chop, chop, chop until the bottom line is what they expect with no regard for long term employees and finding new ways to get rid of any benefits due to those employees this Blueprint is just another one of the hundreds or possibly thousands of attempts by Big Banks to take control of the Real Estate Market and can not be allowed to happen. Commercial is the beginning and "all" is the goal.