As legislation revamping federal financial regulation goes on the books, attention will turn to the Federal Reserve, Treasury Dept. and other agencies that will draft rules fleshing out how the mammoth measure will be implemented. Construction will watch whether banks react to the bill’s increased regulation and higher fees by tightening up on credit.
Lenders’ responses may vary. The legislation sets tougher restrictions on big money-center banks than it does on smaller, community banks, which are important credit sources for the highly regionalized construction industry.