If this rule is finalized, the market will consolidate further and consumer choice and protection will be jeopardized. Potential erosion of consumer protection. The firewall that stands between the commingling of banking and commerce will crumble, thus exposing consumers across America to greater risk. It places consumer privacy at risk. Financial Holding companies will have access to all personal information about its banking AND real estate clients.
Consumers are clearly concerned.
Mixing banking and commerce exposes taxpayers to adverse risk. Financial holding companies currently enjoy a subsidy from the federal government for debt insurance and discount rates. This rule expands the definition of a financial activity to include real estate activity, thus creating risk and exposure not already dealt with in the real estate market.