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Senate rejects mortgage cram-downs

Posted on May 1, 2009 2:30 PM
A massive lobbying campaign to scuttle a measure that would allow bankruptcy judges to rework the mortgages of struggling homeowners succeeded Thursday, delivering a setback to the Obama administration's effort to fix some of the ills of the housing market.

Speaking before the measure was defeated, its author, Sen. Richard Durbin, D-Ill., said the vote would measure the banking industry's grip on the Senate.

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