Banks Beat Homeowners: Foreclosure Bill Killed In Senate

Banks Beat Homeowners: Foreclosure Bill Killed In Senate With Democratic Help

Mortgage Bankers Celebrate Victory

Durbin is deeply unhappy with his Democratic colleagues that sided with the banks. "Frankly, I can't match what the bankers are doing in terms of lobbying," he said. Asked by the Huffington Post how bank influence could ever be reduced, he said, "When the voters speak, some elected officials listen. So I hope that, if we fail on mortgage foreclosure and we fail on credit card reform, I hope that people in this country will stand up and say to Congress, 'You've got the wrong friends.'"

WATCH: Bankers Celebrate On Camera

The Senate on Thursday rejected an effort to stave off home foreclosures by a vote of 51 to 45. It was an overwhelming defeat, with the bill's backers falling 15 votes short -- a quarter of the Democratic caucus -- of the 60 needed to cut off debate and move to a final vote.
The death of the bankruptcy reform measure -- which would have allowed a small number of homeowners who met strict conditions to renegotiate mortgages under bankruptcy protection -- is a major tactical win for the banking industry. But allowing the foreclosure crisis to continue unabated may end up being a failed strategy for the financial sector. LinkHere