The Bankruptcy Reform’s In The Mail

2 comments January 25th, 2009at 03:09pm Posted by Eli

Somehow, I have a feeling we’re in for a lot more of this…

A bill to give judges authority to alter loan terms for primary residences may be the quickest way to arrest the housing market’s collapse. Most Democrats in the House and Senate support that plan. President Barack Obama told Democratic leaders Friday he also backs it, according to a Senate aide who was not authorized to be quoted by name.

But 10 groups representing the lending industry and other businesses are fighting back fiercely. Several have engaged portions of their lobbying machines to stop the legislation. The groups spent $83 million in lobbying on multiple issues in 2008, a figure that shows the power of the banking and investing industry and their business supporters.


Sen. Dick Durbin, D-Ill., the chief Senate sponsor of the bill, said Obama persuaded him in a White House meeting Friday to remove the bankruptcy proposal from an economic recovery package — to ensure it doesn’t jeopardize the stimulus bill. But Obama pledged his support for the bankruptcy solution, Durbin said.

Obama said he would work with Durbin to attach the proposal to other ”must pass” legislation — with the hope that supporters of the overall bill would not vote against it because of the bankruptcy provisions.

“We have to make sure the stimulus passes with the requisite 80 votes, but don’t worry, we’ll try to put bankruptcy reform through later.”  This vague, empty “I’ll totally fix it later” promise reminds me of Obama’s feckless stance on telecom immunity.  He completely dropped his opposition to the FISA “reform” bill, but promised that he would push to remove telecom immunity from it – knowing full well that he didn’t have a snowball’s chance of succeeding, and that the only way to block telecom immunity was to oppose the whole bill.

I hope Obama makes good on his word, but this is not an encouraging sign.

Entry Filed under: Democrats,Economy,Obama,Politics,Republicans,Wankers


  • 1. Cujo359  |  January 25th, 2009 at 3:30 pm

    Could someone tell me what’s “requisite” about 80 votes in the Senate? To me, the magic number is sixty, assuming the Republicans would dare to filibuster this bill for more than a day or two. Eighty sounds to me like a made-up number that makes “.400 hitter” look like quantum physics in comparison.

  • 2. Eli  |  January 25th, 2009 at 6:11 pm

    It’s the Magical Bipartisan Consensus Number. Besides, the Democrats were getting too close to the new 60-vote goalposts, so they had to move them again.

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