Senate Banking Committee Chairman Chris Dodd asked federal regulators Monday to lay out what actions they have taken to stabilize the commercial real estate market.
In particular, the Connecticut Democrat asked for an update on a policy statement the Federal Financial Institutions Examination Council released last year, which said it was assisting examiners in evaluating institutions' efforts to renew or restructure loans to creditworthy commercial real estate borrowers.
"While it may still be relatively early in the process, I would like you to provide an update on how this guidance is helping to stabilize the CRE market," he said in a letter to the Federal Reserve Board, Federal Deposit Insurance Corp., Office of Thrift Supervision, Office of the Comptroller of the Currency and National Credit Union Administration.
"I believe that the weakness in the CRE market requires prompt and robust responses from the regulators," Dodd said. "I urge you to redouble your efforts to provide appropriate oversight of this vital component of our economy."