Ernie Panasci assisted U.S. Representative Ed Perlmutter (D-CO-7) in drafting a Loan Amortization bill that will provide a 10-year amortization (on a quarterly straight line basis) of loan losses and write downs for Commercial Real Estate (CRE) and Other Real Estate Owned (OREO) by banks with assets up to $10 billion, for the sole purpose of calculating capital requirements. It will occur only for a limited period of time; it is not a permanent change.
Representative Perlmutter is a member of the U.S. House Financial Services Committee and last year sponsored the beneficial "mark to market" bill generally incorporated into the House version of regulatory reform. The primary cosponsor of this amortization bill is Representative Mike Coffman (R-CO-6).
The Colorado Bankers Association was a supporter of the bill, and organized conference calls and meetings with Representative Perlmutter, Ernie Panasci and other financial institution and banking experts to advise Representative Perlmutter on drafting the bill. The purpose of the bill is to relieve bank stress, increase lending and reduce unnecessary bank failures.
Read CBA’s newsbyte on the bill introduction here. Please contact CBA if you have questions or comments. Thanks.
