'Cramdown' bill could hit Senate next week

[babylonsister]

'Cramdown' bill could hit Senate next week
By Silla Brush
Posted: 04/23/09 06:43 PM


Senate Democrats, as early as next week, will take up a controversial bill that would empower bankruptcy judges to modify mortgages.

The bill has been stalled in the Senate for weeks as Senate Majority Whip Dick Durbin (D-Ill.) works to reach a compromise with a handful of the nation's largest banks and some credit unions before bringing a bill to the floor. But Senate Democrats on Thursday vowed to move forward on the measure as early as this coming week, said a spokeswoman for Senate Majority Leader Harry Reid (D-Nev.).

A Senate aide earlier on Thursday indicated that the measure could come up as an amendment to a separate bill that would boost the authority of the Federal Deposit Insurance Corporation. That bill enjoys broad support in the Senate. As an amendment, it would face a steep uphill battle to win the 60 votes necessary to overcome a filibuster.

Senate Republicans have been unified against the policy, although some staff had participated in early rounds of negotiations.

"I'm opposed to that," said Sen. Mel Martinez (R-Fla.), who was once thought to be a potential supporter. Some centrist Democrats are also reluctant to support the policy, known as "cramdown" in the financial industry.

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http://thehill.com/leading-the-news/cramdown-bill-could-hit-senate-next-week-2009-04-23.html