One of the first major efforts by regulators to expand the list of permissible activities under the Gramm-Leach-Bliley Act is to allow financial holding companies and financial subsidiaries of nationally chartered banks to engage in real estate brokerage and real estate management services. Part II of this Note will provide a brief history of the financial service regulations that preceded the Gramm-Leach-Bliley Act. Part III will discuss the legislative history of the Gramm-Leach-Bliley Act, provide a brief overview of the Act, and detail the provision which may allow financial holding companies to engage in real estate brokerage and management activities. Part IV of this Note will discuss the pending legislation on this issue, including the proposed rule requesting public comment and the current bills in the House and Senate against allowing banks to engage in the proposed activities. Part V will detail the arguments on both sides of the issue, primarily from the perspective of industry groups. Finally, Part VI of this Note will explain how the current proposal to permit banks to engage in real estate brokerage and management activities highlights the inadequacies of the Gramm-Leach-Bliley Act.
Note, Should Banks Be Permitted to Engage in Real Estate Brokerage and Management Services: How the Current Debate Demonstrates the Inadequacies of the Gramm-Leach-Bliley Act, 50 Clev. St. L. Rev. 103 (2002-2003)