WASHINGTON (AP) - The Senate is poised to reject legislation
that would let bankruptcy judges rewrite mortgages to lower
homeowners' monthly payments.
The vote would mark the first major legislative setback for
President Barack Obama.
Effective lobbying by bankers and voter frustration with
taxpayer-funded "bailouts" have kept Obama from making good on
his promise to wield a heavy stick against a financial industry
blamed for derailing the economy.
Rather than push back against the lending industry, the
administration chose to focus instead on less divisive legislation
that would limit fees charged by credit card companies and pushed
job creation through his $787 billion economic stimulus plan.