The real estate and banking industry suffered a setback at the hands of the Senate Finance Committee last week through passage of tax provisions that will lengthen the amortization period for such identifiable intangible assets as core deposits and customers' lists and thwart efforts to facilitate restructuring of troubled real estate loans.

The panel also changed language in the House version of tax legislation that would have increased the tax benefits of owning commercial real estate, a blow both to banking regulators and insured institutions alike as the industry struggles to get out from under more than $400 billion in nonperforming commercial real estate assets. Language in the House version removing impediments to purchase of real estate assets by pension funds was retained.

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