Senate leaders agreed on Tuesday to draft a compromise bill to help homeowners in the widening U.S. mortgage-market crisis. Senate Minority Leader Mitch McConnell (Republican from Kentucky) said that work would begin on a “bill that would enjoy the confidence and support of the two leaders of the banking committee.” Senate Majority Leader Harry Reid (Democrat from Nevada) replied, “This is a step in the right direction.” The announcement came ahead of a vote on a bill written by Democrats that includes a controversial provision to re-write bankruptcy law so that judges could erase the mortgage debt of some distressed homeowners.
