Banking Conglomerates Permanently Barred from Real Estate Activities
On March 12, 2009, President Barack Obama signed the $410 billion 2009 omnibus appropriations bill. A provision of this legislation permanently prohibits banking regulators from publishing a rule defining real estate brokerage and management as financial activities and thus permissible lines of business for federally regulated banks.
For years, CCIM Institute has opposed changes or interpretations in present federal regulations which would permit any banks or bank holding companies or subsidiaries to enter the field of real estate brokerage and management beyond properties owned by those institutions. In early 2001, the Federal Reserve Board and the U.S. Treasury Department published a proposed regulation that would let national bank holding companies and financial subsidiaries of national banks engage in real estate brokerage and management. Since that time, Congress has passed several temporary bans on banks entering the real estate brokerage and management fields. The legislation signed by Obama this week will permanently prohibit banks from engaging in real estate activities.