Senate Bill Says 'No' To Banks' Real Estate Grab-Bag

A bipartisan bill that will will place limits on banks in the real estate business was introduced last week. "Community Choice in Real Estate Act" would impose a permanent ban on banking conglomerates from engaging in real estate brokerage, leasing, and property management. Support from the bill comes from small business advocates, consumer groups, and communities around the country. Proponents of the Community Choice Act argue that if banks are allowed to sell or manage real estate, home buyers and sellers will have fewer choices, face higher loan fees, and suffer reduced customer service. Others express concern that "some financial institutions could use their leverage in a manner that could harm many real estate management firms and suppress competition in the long term."