Federal Government Seeks to Reform Wall Street

Following passage of the health care bill, President Obama and congressional Democrats now seek to reform the country's financial sphere with a financial overhaul bill.  The 1,336-page bill includes key provisions that would negatively impact commercial real estate, such as risk-retention provisions, regulation of over-the-counter (OTC) derivatives, and new reporting requirements for real estate investors. A March 25 letter, signed by AGC and more than 20 other organizations, to Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and Richard Shelby (R-Ala.) urged the Senators to re-think the bill's current language regarding securitization, new accounting standards, and new regulatory capital guidelines.  The letter states that these provisions "create tremendous uncertainty and impact credit availability."