In a vote of 45-51, the Democratic controlled Senate rejected the "Cram Down Bill" which would have allowed Bankruptcy judges to adjust an individuals mortgage payments through a Chapter 13 bankruptcy. The article can be found on the Atlanta Journal Constituion's website here.
The bill passed through the house in March of this year, and many thought that it would pass through the Senate with ease. However, the bill seemed to fizzle out when Treasury Secretary Geithner wanted a new governmental program to have private investors buying back these loans. Further, the banks were screaming that the "cram down bill" would force them out of business. President Obama, who said that he supported the bill in the fall and would push for it once he took office, did very little to push the lawmakers once the House had passed it.
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