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Senate Panel OK's Ban on Banks in Real Estate

Reuters:

The permanent ban, pushed by Senate Banking Committee Chairman Richard Shelby, an Alabama Republican, was attached to a fiscal 2007 bill funding transportation and housing programs as well as the Treasury Department.

It is unclear when the legislation will be considered by the full Senate.

The National Association of Realtors (NAR) has been pressing the issue on Capitol Hill for months following letters issued by the U.S. Office of the Comptroller of the Currency (OCC) that let two banks make real estate investments that involved hotels and a third to develop and partially own a wind-energy project.

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