Cram-downs out of Senate bill

Cram-downs — in which bankruptcy judges have the power to reduce home mortgage debt by “cramming down” the principal — have not gotten enough support in the Senate and will be removed from a broader housing bill now under consideration. The Senate will vote on the cram-down legislation, which already passed the House of Representatives and which is a significant part of President Barack Obama’s proposed housing rescue, as an amendment to the rescue bill.