Young Enterprises-community stabilization program.

DODD ASKS REGULATORS FOR ANSWERS ON COMMERCIAL REAL ESTATE MARKET Letters to Bank Regulators Ask for Report on Efforts to Stabilize Troubled CRE Market February 22, 2010 WASHINGTON – Today, Senate Banking Committee Chairman Chris Dodd (D-CT) wrote Federal bank regulators and asked them to report on their efforts to stabilize the very troubled commercial real estate market (CRE). This month the Congressional Oversight Panel reported “that nearly half of CRE loans at present are “underwater” and that the largest “loan losses are projected for 2011 and beyond.” Given growing concerns, agencies on the Federal Financial Institutions Examination Council released a policy statement in October on prudent commercial real estate loan workouts to “assist examiners in evaluating institutions’ efforts to renew or restructure loans to creditworthy CRE borrowers.” Today Chairman Dodd followed up, writing these agencies that “I would like you to provide an update on how this guidance is helping to stabilize the CRE market. In addition, I would like an explanation of how [each agency] has addressed the CRE issue so far, and what additional steps you plan to take.” “I believe that the weakness in the CRE market requires prompt and robust responses from the regulators to guard against harmful effects on financial institutions and the economy,” Dodd said. “I urge you to redouble your efforts to provide appropriate oversight of this vital component of our economy, and look forward to working with you to bring much needed stability to the CRE market.” The letter went to Federal Reserve Chairman Ben Bernanke, Federal Deposit Insurance Corporation Chairman Sheila C. Bair, Office of Thrift Supervision Acting Director John E. Bowman, Comptroller of the Currency John C. Dugan, and National Credit Union Administration Chairman Debbie Matz.