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Bank lobbyists organized against a tax reform plan.

The tax overhaul plan proposed by Sen. Bob Packwood (R-Ore.) could force loan foreclosures against farmers, oilmen and financially pressed industries, the American Bankers Assn. said. The bankers opened a public relations campaign to defeat a provision in Packwood’s plan before the Senate Finance Committee that would repeal the special deduction for reserves set aside to cover anticipated loan losses. Donald G. Ogilvie, executive vice president of the bankers group, said that “elimination of the loan-loss reserve will strip bankers of the flexibility and time they need to work with troubled borrowers.”


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