Banks Out Of Real Estate For Another Year

April 24, 2002

U.S. Treasury Ducks Controversial Rule Making

Inman News Features

U.S. Treasury Secretary Paul H. O?Neill has decided to duck the controversial issue of banks getting into the real estate business by putting off for one year consideration of rules implementing the Gramm-Leach-Biley Act, which allows financial institutions to render select realty services.

O?Neill put his decision in a letter to the Chairman of the Committee on Financial Services of the U.S. Congress.

The Treasury secretary specifically cited 35,000 comment letters that came into the Treasurer?s office. Both the National Association of Realtors and the American Banking Association have launched full-scale letter campaigns on the issue. Both sides are expected to declare victory.

"We think there is a strong case for approving the rule, but we are in no hurry to see it approved," said an ABA spokesperson.

Copyright: Inman News Service

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