KeyCorp., South Financial Group Inc., Citigroup Inc. and other banks are likely to benefit if the incoming Obama administration sweetens tax refunds for banking companies operating in the red, analysts said.

In coming weeks, many banks of various sizes are expected to post losses for 2008, and analysts say it is unclear that these banks will return to profitability in 2009. The Obama proposal would allow such companies to use losses suffered in either or both years to reduce taxes paid on profits going back five years, extending a benefit that currently goes back two years.

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