Early on Friday, June 25, a 20-hour marathon by members of the U.S. House and Senate hammered out a reconciliation bill that could transform financial regulation. Their proposal would make lending agreements easier to understand, protect small borrowers from hidden penalties and fees and restrict trading by banks for their own benefit. The approval clears the way for both houses of Congress to vote on the full financial regulatory bill next week.
Idaho First District Rep. Walt Minnick tells Citydesk that in spite of aspects of the bill that "may result in unnecessary cost and government interference, there is more good than bad," in the legislative package.
"Based on my my initial understanding of the legislation, I'm inclined to support the bill," he said.
Minnick said the next step will be new legislation which he is crafting to oversee commercial real estate. Minnick cites a White House blue-ribbon panel which reported a 43 percent decline in commercial real estate assets in the last two years.
"And it's larger now," Minnick told Citydesk. "More individuals are credit-worthy for loans to sustain or build their businesses, but small lending institutions are stressed by collateral assets [commercial real estate] that are declining in value," he said. "They simply can't make the loans, even to eligible lenders."
Minnick told Citydesk he expects his commercial real estate reform legislation to surface before Labor Day.