Banking Law

I was informed today that US Representatives Mike Coffman and Ed Perlmutter of Colorado succeeded today in securing an amendment to HR 5297 (The Small Business Lending Fund Act), which is expected to be voted on by the House tomorrow. The amendment permits amortization of commercial real estate loan losses by banks, a legislative proposal we previously discussed here, and discussed most recently with respect to the efforts of Coffman and Perlmutter here. I haven't seen the text of the amendment, so I can't relate its specific terms. However, based upon the remarks today of Perlmutter and Coffman in support of the amendment (see videos embedded below), and what we know about early drafts of proposed legislation on the topic, I assume the amortization period is up to 10 years.

Whatever community banks can achieve in this regard will be useful in preserving capital. I've been told by some supporters of the bill that the Obama Administration and the federal banking regulators (whether all of them or only some of them was not made clear to me) have come out against this amendment. Therefore, if any community bankers or small businessmen out there want to push this forward in the face of such opposition, they ought to contact their representatives immediately and make their views known, even if it is the eleventh hour and fifty-ninth minute. This is the best chance banks will have to get something like this done.

If not, go back to "America's Got Talent" and your Bud Light.

Here are Perlmutter's remarks today:

Here are Coffman's remarks: