After passing the House the foreclosure relief bill intended to allow bankruptcy judges to modify mortgage terms died in the Senate. A dozen conservative Democrats read 44's lips after he gave only tepid support to the measure. He had previously proclaimed his support for giving homeowners in bankruptcy a way to reduce their mortgage debt and save their homes. But Tim Geithner, the banker's friend, told 44 "cram downs" were a no-go with the money changers. The defeat of the bill prompted Senator Dick Durban (D-Il) to call the banking lobby the "most powerful lobby on Capitol Hill", so powerful he said, "they frankly own the place".
[graphic: NY Times]