Banks’ Foray Into Select Realty Services Delayed

U.S. Treasury Secretary Paul H. O’Neill has decided to table the issue of banks’ getting into the real estate business. O’Neill has postponed for one year consideration of rules implementing the Gramm-Leach-Bliley Act, which allows financial institutions to render select realty services.

O’Neill put his decision in a letter to the chairman of the House Committee on Financial Services. He specifically cited 35,000 comment letters that came into the treasurer’s office. The National Assn. of Realtors and the American Banking Assn. have launched full-scale letter campaigns on the issue.