Financial Services Group Supports Real Estate Rule

WASHINGTON, DC-Consumers will benefit from a proposal being considered by the Federal Reserve Board and the Treasury Department that would allow banks and financial companies into the real estate and property management businesses. So say the members of the Financial Services Roundtable, a national organization representing 100 banks and financial service firms.

The group supports allowing banks and financial services companies into the real estate business, a move loudly opposed by the real estate industry. According to an 11-page letter filed by the Financial Services Roundtable with the Federal Reserve Board and Treasury Department, the proposal should be approved because it was Congress’ original intent when it enacted the Graham-Leach-Bliley Act, legislation that reformed the banking industry. Real estate organizations have argued against the measure on several counts, but Richard M. Whiting, the Financial Services Roundtable Director, says the groups are wrong on all their claims.

“Contrary to the assertions of opponents to the proposed regulation, diversified financial companies, banks, and credit unions are currently affiliating with real estate brokerage companies and cross-marketing loan products, brokerage services, and insurance products to their customers,” he writes in the letter.